Blöchliger, Hansjörg; Durand-Lasserve, Olivier - 2018
include sub-national fiscal policies. Baseline results show convergence rates of regional GDP per capita in line with the 2 …% “iron law of convergence” between countries. Capital investment, and public investment in particular, is a stronger driver … government expenditure is associated with lower growth and slower regional convergence, suggesting low sub-national spending …
