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...

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...

Economists expect positive returns to investments in infrastructure. However a project with higher national returns might have less favourable effects on a regional level than the alternative. Therefore new infrastructure should also be assessed on a regional level, but econom(etr)ic evaluation...