Does regional redistribution spur growth?

After the German reunification, interregional subsidies accounted for approximatelyfour percent of gross fixed capital investment in the new federal states. We show thatbetween 1992 and 2005 infrastructure and (small) business aid had a negative netimpact on regional economic growth. This suggests that regional redistribution wasineffective, potentially due to a lack of spatial concentration to create growth poles....

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Year of publication:	2008-12-08
Authors:	Kötter, Michael ; Wedow, Michael
Institutions:	Deutsche Bundesbank <Frankfurt, Main> / Volkswirtschaftliche Forschungsgruppe
Subject:	Subvention \| Infrastruktur \| infrastructure \| Wachstum \| Umverteilung \| redistribution

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1 Introduction
2 Methodology and data
3 Subsidies considered
4 Results
5 Robustness
6 Conclusion
References

Persistent link: https://www.econbiz.de/10005866160