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Do Interregional Transfers Improve the Economic Performance of Poor Regions? The Case of Spain

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  • Teresa Garcia-Milà
  • Therese McGuire

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. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Teresa Garcia-Milà & Therese McGuire, 2001. "Do Interregional Transfers Improve the Economic Performance of Poor Regions? The Case of Spain," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(3), pages 281-296, May.
    • Handle: RePEc:kap:itaxpf:v:8:y:2001:i:3:p:281-296
    DOI: 10.1023/A:1011264107134
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    More about this item

    Keywords

    regional grants and economic development;

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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