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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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  • de la Fuente, Angel

Abstract

This Paper analyses 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 sizeable, 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 C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3673.

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Date of creation: Dec 2002
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Handle: RePEc:cpr:ceprdp:3673

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Keywords: infrastructure; regional policy; structural funds;

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References

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  1. 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.
  2. Angel de la Fuente & Vicente Salas Fumás, . "On the sources of convergence: A close look at the Spanish regions," Studies on the Spanish Economy 01, FEDEA.
  3. Modesto, Leonor & Neves, Pedro D., 1995. "HERMIN Portugal," Economic Modelling, Elsevier, vol. 12(3), pages 275-294, July.
  4. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," Working Papers 70, Barcelona Graduate School of Economics.
  5. 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.
  6. 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.
  7. Bradley, John & Whelan, Karl & Wright, Jonathan, 1995. "HERMIN Ireland," Economic Modelling, Elsevier, vol. 12(3), pages 249-274, July.
  8. 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.
  9. Herce, Jose-Antonio & Sosvilla-Rivero, Simon, 1995. "HERMIN Spain," Economic Modelling, Elsevier, vol. 12(3), pages 295-311, July.
  10. de la Fuente, A., 1997. "Fiscal policy and Growth in The OECD. Volume II: Appendix," UFAE and IAE Working Papers 401.97, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  11. de la Fuente, Angel, 1997. "Fiscal Policy and Growth in the OECD," CEPR Discussion Papers 1755, C.E.P.R. Discussion Papers.
  12. Bradley, John & Herce, Jose-Antonio & Modesto, Leonor, 1995. "The macroeconomic effects of the CSF 1994-1999 in the EU periphery : An analysis based on the HERMIN model," Economic Modelling, Elsevier, vol. 12(3), pages 323-333, July.
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Citations

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Cited by:
  1. 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).
  2. Angel de la Fuente, 2009. "Testing, not modelling, the impact of Cohesion support: a theoretical framework and some preliminary results for the Spanish regions," Working Papers 419, Barcelona Graduate School of Economics.
  3. Simón Sosvilla-Rivero, . "Structural Funds and Spain’s Objective 1 Regions: An Analysis Based on the Hermin Model," Working Papers 2005-24, FEDEA.

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