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The effect of Structural Fund spending on the Spanish regions: an assessment of the 1994-99 Objective 1 CSF

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  • Angel de la Fuente

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Abstract

This paper analyzes the growth and employment effects of the 1994-99 Community Support Framework (CSF) for the Objective 1 Spanish regions using a simple supply-side model estimated with a panel of regional data. The results suggest that the impact of the Structural Funds in Spain has been quite sizable, adding around a percentage point to annual output growth in the average Objective 1 region and 0.4 points to employment growth. Over the period 1994-2000, the Framework has resulted in the creation of over 300,000 new jobs and has eliminated 20% of the initial gap in income per capita between the assisted regions and the rest of the country.

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Bibliographic Info

Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 538.02.

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Length: 59
Date of creation: 25 Sep 2002
Date of revision:
Handle: RePEc:aub:autbar:538.02

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Keywords: structural funds; regional policy; infrastructures;

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References

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  1. Arantza Gorostiaga, 1999. "¿Cómo afecta el capital público y el capital humano al crecimiento?," Investigaciones Economicas, Fundación SEPI, vol. 23(1), pages 95-114, January.
  2. Holtz-Eakin, Douglas, 1994. "Public-Sector Capital and the Productivity Puzzle," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 12-21, February.
  3. de la Fuente, Angel, 2002. "Is the Allocation of Public Capital Across the Spanish Regions too Redistributive?," CEPR Discussion Papers 3138, C.E.P.R. Discussion Papers.
  4. Angel de la Fuente, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 576.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  5. Teresa Garcia-Milà & Therese J. McGuire & Robert H. Porter, 1993. "The effect of public capital in state-level production functions reconsidered," Economics Working Papers 36, Department of Economics and Business, Universitat Pompeu Fabra.
  6. Evans, Paul & Karras, Georgios, 1994. "Are Government Activities Productive? Evidence from a Panel of U.S. States," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 1-11, February.
  7. Bradley, John & Whelan, Karl & Wright, Jonathan, 1995. "HERMIN Ireland," Economic Modelling, Elsevier, vol. 12(3), pages 249-274, July.
  8. Herce, Jose-Antonio & Sosvilla-Rivero, Simon, 1995. "HERMIN Spain," Economic Modelling, Elsevier, vol. 12(3), pages 295-311, July.
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Citations

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Cited by:
  1. Simón Sosvilla-Rivero, . "Structural Funds and Spain’s Objective 1 Regions: An Analysis Based on the Hermin Model," Working Papers 2005-24, FEDEA.
  2. Aiello, Francesco & Pupo, Valeria, 2012. "Structural funds and the economic divide in Italy," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 403-418.
  3. Angel de la Fuente, 2010. "Infrastructures and productivity: an updated survey," UFAE and IAE Working Papers 831.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  4. Sergio Destefanis & Vania Sena, 2003. "Public Capital and Total Factor Productivity. New Evidence from the Italian Regions," CELPE Discussion Papers 73, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy.
  5. Rosella Nicolini, 2008. "Agglomeration and inequality across space: What can we learn from the European experience?," Working Papers wpdea0809, Department of Applied Economics at Universitat Autonoma of Barcelona.
  6. Aiello Francesco & Pupo Valeria, 2011. "Structural Funds and Economic Divide in Italy," ERSA conference papers ersa10p136, European Regional Science Association.
  7. Francesco AIELLO & Valeria PUPO, 2009. "L'impatto della politica regionale dell'Unione Europea. Uno studio sulle regioni italiane," Rivista Italiana degli Economisti, SIE - Societa' Italiana degli Economisti (I), vol. 14(3), pages 421-454, December.
  8. Antonio Morillas & Laura Moniche & Marc Castro, 2004. "Evaluation of Cross-Border Leakages in Community Support Frameworks. The case of Andalusia (Spain)," ERSA conference papers ersa04p674, European Regional Science Association.
  9. Angel de la Fuente, 2010. "Testing, not modelling, the impact of Cohesion support: a theoretical framework and some preliminary results for the Spanish regions," UFAE and IAE Working Papers 801.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  10. Francesco Aiello & Valeria Pupo, 2009. "L’Impatto Dei Fondi Strutturali In Italia," Working Papers 200901, Università della Calabria, Dipartimento di Scienze Economiche, Statistiche e Finanziarie (Ex Dipartimento di Economia e Statistica).
  11. Shankar, Raja & Shah, Anwar, 2009. "Lessons from European Union policies for regional development," Policy Research Working Paper Series 4977, The World Bank.
  12. Aiello, Francesco & Pupo, Valeria, 2009. "Capacità di gestione, efficienza istituzionale e impatto dei Fondi Strutturali in Italia
    [The Impact of Structural Funds in Italy]    ," MPRA Paper 14429, University Library of Munich, Germany.
  13. Antonio Morillas & Laura Moniche & J Marcos Castro, 2005. "Efectos Ultra Frontera Y Convergencia Regional. Una Reflexión A Partir Del Mac 94-99 En Andalucía," Urban/Regional 0512008, EconWPA.
  14. Juan González Alegre, 2010. "Fiscal decentralization and intergovernmental grants: the European regional policy and Spanish autonomous regions," Working Papers 2010/6, Institut d'Economia de Barcelona (IEB).
  15. GONZÁLEZ ALEGRE, Juan, 2008. "The Distribution of Public Expenditure in Europe," Open Access publications from European University Institute urn:hdl:1814/9868, European University Institute.

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