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The leakage of European funds from Andalusia to other Spanish regions, the case of Innterconecta programme by business indicators

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  • Diego Sande Veiga

Abstract

This paper tests the hypothesis of the existence of leakage of European Structural and Investment Funds destined for Andalusia to other Spanish territories, and it then analyses the impact of this leakage on the main business indicators. For this purpose, data from companies participating in the ERDF Innterconecta programme have been used. This work applies the Propensity Score Matching statistical technique to study the possible impact on the main business indicators (revenue, gross value added, employment, profitability, result of the year, investment in research and development). The study confirms firstly the existence of a significant leakage of resources directed to the Andalusian region. Furthermore, it is observed that there is an impact of the leakage of the funds on some business indicators of non-Andalusian companies which, in some respects, could be reducing the impact of funds on Andalusian companies. The observed results will allow extracting recommendations for the future implementation of business research, development and innovation policies.

Suggested Citation

  • Diego Sande Veiga, 2025. "The leakage of European funds from Andalusia to other Spanish regions, the case of Innterconecta programme by business indicators," European Planning Studies, Taylor & Francis Journals, vol. 33(4), pages 553-577, April.
    • Handle: RePEc:taf:eurpls:v:33:y:2025:i:4:p:553-577
    DOI: 10.1080/09654313.2024.2446330
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