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The FCI: reform simulations


  • Cubel, María

    () (Universidad de Barcelona)

  • de Gispert, Cristina

    () (Universidad de Barcelona)


In this work we explore different scenarios for the reform of the Fondo de Compensación Interterritorial (FCI), which is a conditional grant from the state to the relatively poorer Spanish autonomous communities. To undertake the analysis we define the main elements of that vertical grant (amount, territorial scope and distribution’ criteria) and evaluate the results corresponding to each scenario taking the year 2007 as baseline. The motivation for the reform is related to the current revision of the regional financing system and the reduction of the EU funds for the period 2007-2013. Consequently, to redefine and promote the FCI as an instrument of regional policy, related to the objectives of development and convergence, is a convenient alternative.

Suggested Citation

  • Cubel, María & de Gispert, Cristina, 2010. "The FCI: reform simulations," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 17, pages 141-162.
  • Handle: RePEc:ris:invreg:0074

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    References listed on IDEAS

    1. Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909 Elsevier.
    2. Combes, Pierre-Philippe & Overman, Henry G, 2003. "The Spatial Distribution of Economic Activities in the EU," CEPR Discussion Papers 3999, C.E.P.R. Discussion Papers.
    3. Pol Antras & Elhanan Helpman, 2004. "Global Sourcing," Journal of Political Economy, University of Chicago Press, vol. 112(3), pages 552-580, June.
    4. Jagdish Bhagwati & Arvind Panagariya, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall.
    5. Richard E. Baldwin & Frederic Robert-Nicoud, 2000. "Free trade agreements without delocation," Canadian Journal of Economics, Canadian Economics Association, vol. 33(3), pages 766-786, August.
    6. repec:hrv:faseco:4784029 is not listed on IDEAS
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    More about this item


    Intergovernmental grants; Local finance; Regional development policy;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy


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