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.
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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)
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