Does regional redistribution spur growth?

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

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Year of publication:	2008
Authors:	Koetter, Michael ; Wedow, Michael
Publisher:	Frankfurt a. M. : Deutsche Bundesbank
Subject:	Gemeinschaftsaufgabe Regionale Wirtschaftsstruktur \| Regionalpolitik \| Subvention \| Wirtschaftspolitische Wirkungsanalyse \| Regionales Wachstum \| Entwicklungskonvergenz \| Neue Bundesländer \| Alte Bundesländer \| Deutschland \| Regional growth \| redistribution \| infrastructure \| investment subsidies

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Series:	Discussion Paper Series 1 ; 2008,28
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	589815075 [GVK] hdl:10419/27652 [Handle] RePEc:zbw:bubdp1:7567 [RePEc]
Classification:	R11 - Regional Economic Activity: Growth, Development, and Changes ; R58 - Regional Development Policy ; R42 - Government and Private Investment Analysis
Source:	EconStor

Persistent link: https://www.econbiz.de/10010298745