Department of Economics and Business - Universitat Pompeu Fabra

Title:: Do interregional transfers improve the economic performance of poor regions? The case of Spain
Authors:: Teresa Garcia-Milà and Therese J. McGuire
Date:: December 1996
Abstract:: The 17 regional governments of Spain receive grants from both the central government and the European Union. The grants are generally redistributive and are intended to stimulate economic activity in the poorer regions. We evaluate the effectiveness of the grants by comparing the economic performance of the regions before and after the implementation of the grant programs using a differences--in-- differences approach. We find that these policies have not been effective at stimulating private investment or improving the overall economies of the poorer regions.
Keywords:: Regional grants and economic development
JEL codes:: H7, R5
Area of Research:: Macroeconomics and International Economics
Published in:: International Tax and Public Finance, 8 (3), 2001, pp. 281-295

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