Convergence and public investment: Regional policies revisited
AbstractThe aim of this paper is to add new arguments to the debate on the redesign of regional policies. An endogenous growth model is presented with two regions where the crucial issue for the removal of regional disparities is public investment. When testing the model using data obtained from Spanish regions, evidence of convergence is not found, in spite of the redistribution pattern of regional allocation of public investment during the 80's and 90's and a high degree of private capital mobility. After analyzing other factors potentially affecting regional convergence, a number of recommendations are supplied in order to redefine European and Spanish regional policies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2005/05.
Length: 27 pages
Date of creation: 2005
Date of revision:
Infrastructures; convergence; growth;
Find related papers by JEL classification:
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-07 (All new papers)
- NEP-GEO-2005-05-07 (Economic Geography)
- NEP-PBE-2005-05-07 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eric A. Hanushek, 2003.
"The Failure of Input-Based Schooling Policies,"
Royal Economic Society, vol. 113(485), pages F64-F98, February.
- Henry G. Overman & Diego Puga, 1999.
"Unemployment clusters across European regions and countries,"
LSE Research Online Documents on Economics
20211, London School of Economics and Political Science, LSE Library.
- Henry G. Overman & Diego Puga, 2002. "Unemployment clusters across Europe's regions and countries," Economic Policy, CEPR & CES & MSH, vol. 17(34), pages 115-148, 04.
- Overman, Henry G. & Puga, Diego, 1999. "Unemployment Clusters Across European Regions and Countries," CEPR Discussion Papers 2255, C.E.P.R. Discussion Papers.
- Diego Puga, 1999. "Unemployment clusters across Europe's regions and countries," Working Papers dpuga-99-03, University of Toronto, Department of Economics.
- Henry Overman & Diego Puga, 1999. "Unemployment Clusters Across European Regions and Countries," CEP Discussion Papers dp0434, Centre for Economic Performance, LSE.
- Gonzalez-Paramo, Jose Manuel & Martinez, Diego, 2003. "Convergence across Spanish Regions: New Evidence on the Effects of Public Investment," The Review of Regional Studies, Southern Regional Science Association, vol. 33(2), pages 184-205.
- 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.
- Enrique Lopez Bazo & Esther Vaya Valcarce & Antonio Jose Mora & Jordi Surinach Caralt, 1997. "Regional economic dynamics and convergence in the european union," Working Papers in Economics 12, Universitat de Barcelona. Espai de Recerca en Economia.
- de la Fuente, Angel, 2004. "Second-best redistribution through public investment: a characterization, an empirical test and an application to the case of Spain," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 489-503, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Teresa Rodríguez).
If references are entirely missing, you can add them using this form.