Do interregional transfers improve the economic performance of poor regions? the case of Spain

Teresa Garcia-Milà*, Therese J. McGuire

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

42 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)281-296
Number of pages16
JournalInternational Tax and Public Finance
Volume8
Issue number3
DOIs
StatePublished - Jan 1 2001

Keywords

  • Regional grants and economic development

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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