@article{9d615a5fee9b4dd685c9a821fed1e36e,
title = "Do interregional transfers improve the economic performance of poor regions? the case of Spain",
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",
author = "Teresa Garcia-Mil{\`a} and McGuire, {Therese J.}",
note = "Funding Information: 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. Funding Information: The authors are grateful to Rob Porter for discussions and to Marisa de la Torre and Alessandro Secchi for superb research assistance. We would also like to thank participants at the MIT public finance lunch seminar, participants at the 1996 Trans-Atlantic Public Economics (TAPES) Seminar in Amsterdam, participants at a seminar at the Public Policy Institute of California, and three anonymous referees and the editors for helpful comments and suggestions. We are particularly grateful to Robert Moffitt for very helpful comments and suggestions. Garcia-Mil{\`a} gratefully acknowledges support from DGICYT, Ministerio de Educaci{\'o}n y Ciencia, Spain. Funding Information: Our findings are in line with a recent study of specific projects funded by the EU grants (FEDEA (1994)). In an empirical analysis of fifteen regions from 1980 to 1991, the authors estimate equations with value added as the dependent variable and public investment funded by both the FCI and FEDER as independent variables. They find that the public investment variables are not significant determinants of value added in the regions.",
year = "2001",
doi = "10.1023/A:1011264107134",
language = "English (US)",
volume = "8",
pages = "281--296",
journal = "International Tax and Public Finance",
issn = "0927-5940",
publisher = "Springer New York",
number = "3",
}
