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Evaluation of Cross-Border Leakages in Community Support Frameworks. The case of Andalusia (Spain)

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Antonio Morillas ()
Laura Moniche ()
Marc Castro ()

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Abstract

The enlargement of the European Union to 25 members implies that relative position of Andalusia will improve with regard to the new GDP per capita average. This fact may derive a reduction in structural funds support for this Spanish region objective 1. This paper is focused in the ex-post assessment of the CSF 1994–99 in Andalusia. Direct and indirect effects, as well as cross-border leakage are analysed. We aim to compare stimuli induced from structural funds in the rest of the national economy with those remaining in Andalusia. If effects on the rest of Spain were important in relative terms, the central idea of regional policy, which defines community convergence tools, would be questioned. Results show evidences for this hypothesis in the case of Andalusia, given the importance of the effects generated in the rest of Spain and the biases of CSF funds towards sectors with a high need for imports, some of which are characterized by an intensive use of the region’s natural resources. Key Words: Structural Funds; Ex-post Evaluation; Convergence; Input-Output; Cross-border leakages. JEL classification: C67; C82; R58

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p674.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p674

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  1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March. [Downloadable!] (restricted)
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  2. Canova, Fabio & Marcet, Albert, 1995. "The Poor Stay Poor: Non-Convergence Across Countries and Regions," CEPR Discussion Papers 1265, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR, CES, MSH, vol. 16(32), pages 205-253, 04. [Downloadable!] (restricted)
  4. Juan R. Cuadrado-Roura, 2001. "Regional convergence in the European Union: From hypothesis to the actual trends," The Annals of Regional Science, Springer, vol. 35(3), pages 333-356. [Downloadable!] (restricted)
  5. Modesto, Leonor & Neves, Pedro D., 1995. "HERMIN Portugal," Economic Modelling, Elsevier, vol. 12(3), pages 275-294, July. [Downloadable!] (restricted)
  6. Angel de la Fuente, . "The effect of Structural Fund spending on the Spanish regions: an assessment of the 1994-99 Objective 1 CSF," Working Papers 2003-11, FEDEA. [Downloadable!]
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  1. Ana Salomé García & Antonio Morillas & Carmen Rueda, 2005. "Relaciones interindustriales y difusión de la innovación: una aproximación desde la Teoría de Redes," Urban/Regional 0512005, EconWPA. [Downloadable!]
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