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Central Government Transfers and Regional Convergence in Portugal

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  • Marta Ferreira Dias

    ()

  • Ricardo Silva

    ()

Abstract

Over the last decades, the Portuguese economy exhibited an outstanding growth performance. This period of fast economic growth allowed the country to consistently reduce its income gap with respect to the EU average. In spite of this, regions in Portugal exhibited large differences between each other in terms of GDP per capita. Yet, the Portuguese government did make attempts at regional intervention by means of some policy instruments, namely public transfers to local (and regional) government. How successful these policies have been in terms of achieving their goal is still an open question, especially as far as Portuguese Central Government transfers are concerned. The main purpose of the paper is to evaluate if the system of Central Government transfers has affected the intra-regional Portuguese convergence. We haven’t found unquestionable evidence that these policies have been effective at stimulating convergence among Portuguese regions and at improving the overall economies of the poorer regions. Keywords: Regional convergence, Central Government transfers, Regional policy JEL Classification: H71; O18; R58

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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p443.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p443

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  1. de la Fuente, Angel, 2002. "On the sources of convergence: A close look at the Spanish regions," European Economic Review, Elsevier, Elsevier, vol. 46(3), pages 569-599, March.
  2. Juan Camilo Chaparro & Michael Smart & Juan Gonzola Zapata, 2004. "Intergovernmental Transfers and Municipal Finance in Colombia," International Tax Program Papers, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto 0403, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
  3. de la Fuente, Angel, 2002. "Is the Allocation of Public Capital Across the Spanish Regions too Redistributive?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3138, C.E.P.R. Discussion Papers.
  4. Carlino, Gerald A. & Mills, Leonard, 1996. "Testing neoclassical convergence in regional incomes and earnings," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 26(6), pages 565-590, December.
  5. Bev Dahlby, 1996. "Fiscal externalities and the design of intergovernmental grants," International Tax and Public Finance, Springer, Springer, vol. 3(3), pages 397-412, July.
  6. Jan Fagerberg & Bart Verspagen, 1996. "Heading for Divergence? Regional Growth in Europe Reconsidered," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 34(3), pages 431-448, 09.
  7. Ali, Agha Iqbal & Lerme, Catherine S. & Nakosteen, Robert A., 1993. "Assessment of intergovernmental revenue transfers," Socio-Economic Planning Sciences, Elsevier, Elsevier, vol. 27(2), pages 109-118, June.
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Cited by:
  1. Luque, Carlos A. & Haddad, Eduardo A. & Lima, Gilberto T. & Sakurai, Sergio N. & Costa, Silvio M., 2011. "Impact assessment of interregional government transfers in Brazil: an input-output approach," MPRA Paper 31292, University Library of Munich, Germany.
  2. Adelaide Duarte & Marta Simões, 2010. "Regional growth in Portugal: assessing the contribution of earnings and education inequality," GEMF Working Papers, GEMF - Faculdade de Economia, Universidade de Coimbra 2010-11, GEMF - Faculdade de Economia, Universidade de Coimbra.
  3. Calin Arcalean & Gerhard Glomm & Ioana Cosmina Schiopu, 2012. "Growth Effects of Spatial Redistribution Policies," CESifo Working Paper Series, CESifo Group Munich 3728, CESifo Group Munich.
  4. Capello, Marcelo & Figueras, Alberto & Freille, Sebastian & Moncarz, Pedro, 2013. "The role of federal transfers in regional convergence in human development indicators in Argentina," Investigaciones Regionales, Asociación Española de Ciencia Regional, Asociación Española de Ciencia Regional, issue 27, pages 33-63.
  5. Meunier, Olivier & Mignolet , Michel & Mulquin, Marie-Eve, 2007. "Interpersonal transfers: Do they impact the growth of poor and rich European regions?," Investigaciones Regionales, Asociación Española de Ciencia Regional, Asociación Española de Ciencia Regional, issue 10, pages 155-170.

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