Abstract

In Germany there is a discussion on the design of regional policy, whether cohesion is still appropriate or should be replaced by a regional growth policy for efficiency reasons. This discussion is most notably founded with theoretical arguments from the new growth theory as well as the (empirical) insight that despite an extensive redistribution of wealth regional differences still exist. Crucial for the effectiveness of cohesion measures is the development of regions in the long run, whether regions converge or diverge. From German convergence studies it follows that there is a tendency for convergence. Our empirical analysis gives em-pirical evidence that the Commontask "Improvement of Regional Economic Structure" has an influence on the convergence process.

JEL-Klassifikation: C21, R11, R58