Regional allocation of public investment has been considered of a great interest over the years. Regional policy uses … investments as a basic developmental tool and it seeks for an effective allocation among the regions. In addition, national … national product. Therefore, an effective allocation by the central government is of a great significance. In addition …

’ in the geographical allocation of goods and services by governments. In such empirical studies of distributive politics … greater political clout to influence allocation of funds from central to sub-central authorities. The vast majority of studies … geographic patterns in the allocation of regional spending, in the post-1994 period. By contrast, our argument focuses on the …

regional allocation of public capital is to invest in highly productive regions, whereas the actual policy pursues equity goals … by allocating more public investment to depressed regions. We determine the effects of this equity- oriented allocation … and the equitable allocation of public investment …