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Measuring the Permanent Impact of European Structural Funds on Peripheral Objective 1 Regions: The Case of Galicia

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  • José Ramón Cancelo
  • J. Andrés Faíña
  • Jesús López-Rodríguez

Abstract

We present a stylized, supply-side model to estimate the permanent effects of the Community Support Framework (CSF) programmes on a regional economy and use it to estimate the impact of the 1994--1999 and 2000--2006 CSF programmes on the Spanish region of Galicia. The evolution of the economy is simulated under two scenarios, with and without CSF funds, studying the contribution of the European regional policy to the output, employment and different categories of capital. Our results suggest that the contribution of the Structural Funds to the growth of the Galician economy is remarkable and that the impacts of the European programmes extend well beyond the end of the aid.

Suggested Citation

  • José Ramón Cancelo & J. Andrés Faíña & Jesús López-Rodríguez, 2009. "Measuring the Permanent Impact of European Structural Funds on Peripheral Objective 1 Regions: The Case of Galicia," European Planning Studies, Taylor & Francis Journals, vol. 17(10), pages 1535-1558, July.
    • Handle: RePEc:taf:eurpls:v:17:y:2009:i:10:p:1535-1558
    DOI: 10.1080/09654310903141771
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    References listed on IDEAS

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    1. Angel de la Fuente, "undated". "The effect of Structural Fund spending on the Spanish regions: an assessment of the 1994-99 Objective 1 CSF," Working Papers 2003-11, FEDEA.
    2. Werner Roeger & Jan in 't Veld, 1997. "QUEST II. A Multi-Country Business Cycle and Growth Model," European Economy - Economic Papers 2008 - 2015 123, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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