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Convergence and public investment: Regional policies revisited

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Author Info
Santiago Lago-Peñas () (Univesidad de Vigo)
Diego Martínez López () (Centro de Estudios Andaluces y Univesidad Pablo de Olavide)

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Abstract

The 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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Publisher Info
Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2005/05.

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Length: 27 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:cea:doctra:e2005_05

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Related research
Keywords: Infrastructures; convergence; growth;

Find related papers by JEL classification:
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

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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.:
  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. [Downloadable!]
  2. Overman, Henry G. & Puga, Diego, 1999. "Unemployment Clusters Across European Regions and Countries," CEPR Discussion Papers 2255, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. 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. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
  5. Eric A. Hanushek, 2003. "The Failure of Input-Based Schooling Policies," Economic Journal, Royal Economic Society, vol. 113(485), pages F64-F98, February. [Downloadable!] (restricted)
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