Convergence and Public Investiment : Regional Policies Revisited

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. Ramp;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