We present a theoretical study on the role of recurrent connections in processing sensorimotor transformations in the posterior parietal cortex. An experimental study (A. Gail SfN 2005) shows that activity in the monkey parietal reach region (PRR) represents the spatial goal of reach movements rather than the location of the visual cue during an anti-reach task. A 2-dimensional, 3-layer neural network (Zipser-Andersen type) with 2 different kinds of recurrent connections was trained to represent reach goals in its output layer, depending on the location of a visual cue and the behavioral context (reach/anti-reach) fed into its input layer. The network was trained using a backpropagation-through-time algorithm allowing the network to simulate memory-guided reach planning. In the first version of the model only the units in the hidden layer were recurrently connected. The units in the hidden layer (‘PRR’) developed receptive fields with a spatial tuning representing the visual cue that was gain modulated wit...