Measuring the Permanent Impact of European Structural Funds on Peripheral Objective 1 Regions: The Case of Galicia.

We present a stylized, supply-side model to estimate the permanent effects of the Community Support Framework (CSF) programmes on a regional economy and use it to estimate the impact of the 1994-1999 and 2000-2006 CSF programmes on the Spanish region of Galicia. The evolution of the economy is simulated under two scenarios, with and without CSF funds, studying the contribution of the European regional policy to the output, employment and different categories of capital. Our results suggest that the contribution of the Structural Funds to the growth of the Galician economy is remarkable and that the impacts of the European programmes extend well beyond the end of the aid. [ABSTRACT FROM AUTHOR]