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

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Author Info
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

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File URL: http://hdl.handle.net/10.1023/A:1011264107134
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Publisher Info
Article provided by Springer in its journal International Tax and Public Finance.

Volume (Year): 8 (2001)
Issue (Month): 3 (May)
Pages: 281-296
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Handle: RePEc:kap:itaxpf:v:8:y:2001:i:3:p:281-296

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Related research
Keywords: regional grants and economic development

Cited by:
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  1. Gerson Javier Pérez V. & Peter Rowland, . "Regional Economic Policies: Four Country Cases," Borradores de Economia 301, Banco de la Republica de Colombia. [Downloadable!]
    Other versions:
  2. Juan David Barón & Gerson Javier Pérez & Peter Rowland, . "A Regional Economic Policy for Colombia," Borradores de Economia 314, Banco de la Republica de Colombia. [Downloadable!]
    Other versions:
  3. Sjed Ederveen & Joeri Gorter & Ruud de Mooij & Richard Nahuis, 2003. "Funds and Games: The Economics of European Cohesion Policy," Occasional Papers 03, European Network of Economic Policy Research Institutes. [Downloadable!]
  4. Bergman, Malin, 2003. "Interregional Inequality and Robin Hood Politics," Working Paper Series in Economics and Finance 523, Stockholm School of Economics. [Downloadable!]
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This page was last updated on 2008-11-10.


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