Abstract

This paper studies the factors driving the regional public investment at province level. Particularly, we analyse which criteria are behind the territorial allocation of public spending in roads and hydraulic infrastructures in Andalucia (Spain) over the period 1985-2000. Our main results show that there are no robust indications that public investment has followed a criterion based on expenditures needs. Conversely, it seems to be clear that redistributive considerations have played a significant role, as opposite to efficiency criteria. Moreover, a complementary relationship between regional and central public investment is detected, but it has to be qualified when different political parties are in power at both levels of government.