EU Science Hub

The rural-urban spillovers of EU structural policies in Cordoba, Spain

The European Union's Regional Policy and Common Agricultural Policy share a common objective of balanced regional development; in practice, they are implemented in very distinct ways as regional policies mainly focus their strategy on urban development while the CAP Pillar 2 is based on a program which is specifically targeted at rural areas. Understanding the origins of economic growth in rural and urban areas is at the core of the debate on territorial convergence and the future of both policies. This paper assesses the impacts of Regional and Rural Development Programmes on the Spanish economy of Cordoba using a bi-regional CGE model in order to shed light on their capacity to fulfill the objective of balanced regional development.