Economic Convergence in the Spanish Regions: the Role of the European Funds and the Transport Infrastructure Endowment (1989–2017)

Abstract

[Abstract] Convergence is one of the fundamental objectives of the EU to achieve cohesion among its regions. The paper analyzes the process of economic convergence among Spanish regions focusing mainly on the impact of European Funds investments and on the stock of transport infrastructures. A series of growth regression have been estimated using a panel data for 17 Spanish regions over the period 1989–2017. The data were obtained from the FBBVA-IVIE database and from the EU regional policy reports of the Spanish government. The results obtained show that a convergence process across Spanish regions has taken place since Spain accession to the EU. The European Funds investments and the level of transport infrastructures are relevant for economic growth, but do not generate a strong catching-up process.