Working Paper: CEPR ID: DP3673
Authors: Angel de la Fuente
Abstract: This Paper analyses the growth and employment effects of the 1994-99 Community Support Framework (CSF) for the Objective 1 Spanish regions, using a simple supply-side model estimated with a panel of regional data. The results suggest that the impact of the Structural Funds in Spain has been quite sizeable, adding around a percentage point to annual output growth in the average Objective 1 region, and 0.4 points to employment growth. Over the period 1994-2000, the Framework has resulted in the creation of over 300,000 new jobs and has eliminated 20% of the initial gap in income per capita between the assisted regions and the rest of the country.
Keywords: infrastructure; regional policy; structural funds
JEL Codes: E62; H50; R58
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| structural fund spending (H19) | annual output growth (O40) |
| structural fund spending (H19) | employment growth (O49) |
| structural fund spending (H19) | creation of new jobs (J23) |
| structural fund spending (H19) | reduction of income per capita gap (F62) |
| structural fund spending (H19) | human capital effects (J24) |
| structural fund spending (H19) | physical investment effects (G31) |