IDEAS home Printed from https://ideas.repec.org/p/fda/fdaddt/2005-24.html
   My bibliography  Save this paper

Structural Funds and Spain’s Objective 1 Regions: An Analysis Based on the Hermin Model

Author

Listed:
  • Simón Sosvilla-Rivero

Abstract

This paper presents an empirical evaluation of the economic effects of the Structural Funds received by the Spain’s Objective 1 regions through the Community Support Framework (CSF). The empirical results suggest that the funds have significantly contributed to economic growth, as well as to wealth and employment creation. Compared to a scenario without CSFs, the successive investment programmes from 1989 to 2006 would represent an average increase of 0.56 percentage points in the growth rates of the Spanish recipient regions. This increase would translate to an average increase in per capita income of 425 euros at 1999 prices. In terms of the labour market, the CSF has maintained or generated an increase of 1.46 per cent in employment compared to an alternative scenario without CSF. This in turn would represent an average reduction of 0.74 percentage points in the unemployment rate during the aforementioned period.

Suggested Citation

  • Simón Sosvilla-Rivero, "undated". "Structural Funds and Spain’s Objective 1 Regions: An Analysis Based on the Hermin Model," Working Papers 2005-24, FEDEA.
    • Handle: RePEc:fda:fdaddt:2005-24
    as

    Download full text from publisher

    File URL: https://documentos.fedea.net/pubs/dt/2005/dt-2005-24.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
    2. Philippe Martin & Gianmarco I.P. Ottaviano, 2021. "Growing locations: Industry location in a model of endogenous growth," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 1, pages 3-24, World Scientific Publishing Co. Pte. Ltd..
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    4. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
    5. Matilde Mas & Joaquin Maudos & Francisco Perez & Ezequiel Uriel, 1996. "Infrastructures and Productivity in the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 641-649.
    6. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    7. 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.
    8. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
    9. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
    10. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
    11. Gianmarco I. P. Ottaviano & Diego Puga, 1998. "Agglomeration in the Global Economy: A Survey of the ‘New Economic Geography’," The World Economy, Wiley Blackwell, vol. 21(6), pages 707-731, August.
    12. Bradley, John & Fitzgerald, John, 1988. "Industrial output and factor input determination in an econometric model of a small open economy," European Economic Review, Elsevier, vol. 32(6), pages 1227-1241, July.
    13. Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified? [‘Specialization patterns in Europe’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 17(35), pages 321-359.
    14. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
    15. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-1255, December.
    16. José Manuel González-Páramo & Diego Martínez López, "undated". "Public Investment and Convergence in the Spanish Regions," Studies on the Spanish Economy 112, FEDEA.
    17. C. Alicia Avilés Zugasti & Rosario Gómez García & José Sánchez Maldonado, 2001. "The effects of public infrastructure on the cost structure of Spanish industries," Spanish Economic Review, Springer;Spanish Economic Association, vol. 3(2), pages 131-150.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julián Pérez & Milagros Dones & Carlos Llano, 2009. "An interregional impact analysis of the EU structural funds in Spain (1995–1999)," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 509-529, August.
    2. Dumitru BELDIMAN & Alia Gabriela DUȚĂ, 2020. "Possibilities to Quantify the Impact of Accessing Structural Funds and Cohesion Using Econometric Models," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(22), pages 21-33, November.
    3. Juan González-Alegre, 2015. "Does fiscal decentralization affect the effectiveness of intergovernmental grants? European regional policy and Spanish autonomous regions," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 817-847, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simón Sosvilla Rivero & Oscar Bajo Rubio & Carmen Díaz Roldán, "undated". "Sobre la efectividad de la política regional comunitaria: El caso de Castilla-la Mancha," Studies on the Spanish Economy 178, FEDEA.
    2. Ugo Fratesi, 2008. "Regional policy from a supra-regional perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 681-703, September.
    3. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
    4. Pflüger, Michael & Südekum, Jens, 2008. "Integration, agglomeration and welfare," Journal of Urban Economics, Elsevier, vol. 63(2), pages 544-566, March.
    5. Simón Sosvilla-Rivero & Oscar Bajo-Rubio & Carmen Díaz-Roldán, 2006. "Assessing the effectiveness of the EU's regional policies on real convergence: An analysis based on the HERMIN model," European Planning Studies, Taylor & Francis Journals, vol. 14(3), pages 383-396, April.
    6. Puga, Diego, 2008. "Agglomeration and cross-border infrastructure," EIB Papers 9/2008, European Investment Bank, Economics Department.
    7. Ingrid Ott & Susanne Soretz, 2006. "Governmental activity, integration, and agglomeration," Working Paper Series in Economics 57, University of Lüneburg, Institute of Economics.
    8. Roberto Ezcurra & Pedro Pascual & Manuel Rapun, 2006. "Regional Specialization in the European Union," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 601-616.
    9. Gianmarco Ottaviano, 2003. "Regional Policy in the Global Economy: Insights from New Economic Geography," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 665-673.
    10. Fabien Candau, 2008. "Entrepreneurs' Location Choice And Public Policies: A Survey Of The New Economic Geography," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 909-952, December.
    11. Sarantis Lolos, 2009. "The effect of EU structural funds on regional growth: assessing the evidence from Greece, 1990–2005," Economic Change and Restructuring, Springer, vol. 42(3), pages 211-228, August.
    12. Kristian Behrens & Frédéric Robert‐Nicoud, 2009. "Krugman's Papers in Regional Science: The 100 dollar bill on the sidewalk is gone and the 2008 Nobel Prize well‐deserved," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 467-489, June.
    13. Rosella Nicolini, 2008. "Agglomeration and inequality across space: What can we learn from the European experience?," Working Papers wpdea0809, Department of Applied Economics at Universitat Autonoma of Barcelona.
    14. Ott, Ingrid & Soretz, Susanne, 2010. "Productive public input, integration and agglomeration," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 538-549, November.
    15. Alfonso Herranz Loncán, 2004. "La dotación de infraestructuras en España, (1844-1935)," Estudios de Historia Económica, Banco de España, number 45, November.
    16. Bartlomiej ROKICKI & Mieczyslaw W. SOCHA, 2008. "Effects of Poland's Integration with the EU: Structural Interventions and Economic Development in the Eastern Border Regions," The Journal of Comparative Economic Studies (JCES), The Japanese Society for Comparative Economic Studies (JSCES), vol. 4, pages 81-114, December.
    17. Bartłomiej Rokicki, 2007. "Przegląd budżetu Unii Europejskiej a reforma polityki spójności," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 7-8, pages 105-125.
    18. Straub, Stephane, 2008. "Infrastructure and growth in developing countries : recent advances and research challenges," Policy Research Working Paper Series 4460, The World Bank.
    19. Roibás, David & Baños, José, 2010. "The Impact of Infraestructures in Provincial Production: Assesing its Dynamic Impact," Efficiency Series Papers 2010/05, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    20. González-Val, Rafael & Lanaspa, Luis & Pueyo, Fernando, 2009. "Trade policies, concentration, growth and welfare," Economic Modelling, Elsevier, vol. 26(6), pages 1355-1364, November.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:2005-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carmen Arias (email available below). General contact details of provider: https://www.fedea.net .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.