Convergence and Public Investiment: Regional Policies Revisited

REGIONAL ECONOMIC POLICY IN EUROPE: NEW CHALLENGES FOR THEORY, EMPIRICS AND NORMATIVE INTERVENTIONS, Ulrike Stierle-von Schutz, Michael H. Stierle, Frederic B. Jennings Jr., Adrian Kuah, eds., Edward Elgar, Chentelham, 2008

30 Pages Posted: 2 Feb 2009 Last revised: 19 Feb 2009

Santiago Lago-Peñas

University of Vigo, GEN (Governance and Economics Research Network)

Diego Martínez Lopez

Universidad Pablo de Olavide

Date Written: February 2, 2009

Abstract

The aim of this paper is to add new arguments to the debate on the redesign of regional policies. After revising the main factors involving regional economic growth, we provide empirical evidence on the impact caused by the regional policy on convergence. Particularly, we have checked that the traditional regional policy based on infrastructures has not reduced disparities across Spanish regions over the 80's and 90's, despite its redistributive pattern and a high degree of private capital mobility. R&D expenditures appear to be a relevant policy tool to modify the dynamics of regional income per capita, although its true relevance needs to be studied more deeply at regional level. Finally, a number of recommendations are supplied in order to redefine European and Spanish regional policies.

Keywords: infrastructures, convergence, growth, R&D spending

JEL Classification: H54, R58

Suggested Citation

Lago-Peñas, Santiago and Martínez Lopez, Diego, Convergence and Public Investiment: Regional Policies Revisited (February 2, 2009). REGIONAL ECONOMIC POLICY IN EUROPE: NEW CHALLENGES FOR THEORY, EMPIRICS AND NORMATIVE INTERVENTIONS, Ulrike Stierle-von Schutz, Michael H. Stierle, Frederic B. Jennings Jr., Adrian Kuah, eds., Edward Elgar, Chentelham, 2008. Available at SSRN: https://ssrn.com/abstract=1336516

Santiago Lago-Peñas (Contact Author)

University of Vigo, GEN (Governance and Economics Research Network) ( email )

Ourense, Ourense 32004
Spain

HOME PAGE: http://webs.uvigo.es/infogen

Diego Martínez Lopez

Universidad Pablo de Olavide ( email )

Ctra. Utrera, Km.1
Sevilla, Seville 41010
Spain

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