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In Search of the 'Economic Dividend' of Devolution: Spatial Disparities, Spatial Economic Policy and Decentralisation in the UK

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  • Andy Pike
  • Andrés Rodríguez-Pose
  • John Tomaney
  • Gianpiero Torrisi
  • Vassilis Tselios

Abstract

After a decade of devolution and amid uncertainties about its effects, it is timely to assess and reflect upon the evidence and enduring meaning of any 'economic dividend' of devolution in the UK. Taking a multi-disciplinary approach utilising institutionalist and quantitative methods, this paper seeks to discern the nature and extent of any 'economic dividend' through a conceptual and empirical analysis of the relationships between spatial disparities, spatial economic policy and decentralisation. Situating the UK experience within the historical context of its evolving geographical political economy, we find: i) a varied and uneven nature of the relationships between regional disparities, spatial economic policy and decentralisation that change direction during specific time periods; ii) the role of national economic growth is pivotal in explaining spatial disparities and the nature and extent of their relationship with the particular forms of spatial economic policy and decentralisation deployed; and, iii) there is limited evidence that any 'economic dividend' of devolution has emerged but this remains difficult to discern because its likely effects are over-ridden by the role of national economic growth in decisively shaping the pattern of spatial disparities and in determining the scope and effects of spatial economic policy and decentralisation.

Suggested Citation

  • Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2010. "In Search of the 'Economic Dividend' of Devolution: Spatial Disparities, Spatial Economic Policy and Decentralisation in the UK," SERC Discussion Papers 0062, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:sercdp:0062
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    Cited by:

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    2. Minyan Zhu & Antonio Peyrache, 2017. "The quality and efficiency of public service delivery in the UK and China," Regional Studies, Taylor & Francis Journals, vol. 51(2), pages 285-296, February.
    3. Tarkan Cavusoglu & Oguzhan Dincer, 2015. "Does decentralization reduce income inequality? Only in rich states," Southern Economic Journal, Southern Economic Association, vol. 82(1), pages 285-306, July.
    4. Dominic Williams, 2011. "What do business rates measure?," Local Economy, London South Bank University, vol. 26(3), pages 145-156, May.
    5. Neil Lee & Paul Sissons, 2016. "Inclusive growth? The relationship between economic growth and poverty in British cities," Environment and Planning A, , vol. 48(11), pages 2317-2339, November.
    6. repec:wly:soecon:v:82:1:y:2015:p:285-306 is not listed on IDEAS
    7. Graham Brownlow, 2017. "Practice running ahead of theory? Political economy and the economic lessons of UK devolution," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 559-573.
    8. Neil Lee, 2017. "Powerhouse of cards? Understanding the ‘Northern Powerhouse’," Regional Studies, Taylor & Francis Journals, vol. 51(3), pages 478-489, March.
    9. Torrisi, Gianpiero & Pike, Andy & Tomaney, John & Tselios, Vassilis, 2011. "(Re-)exploring the link between devolution and regional disparities in Italy," MPRA Paper 32212, University Library of Munich, Germany.
    10. Anping Chen & Mark D. Partridge, 2013. "When are Cities Engines of Growth in China? Spread and Backwash Effects across the Urban Hierarchy," Regional Studies, Taylor & Francis Journals, vol. 47(8), pages 1313-1331, September.
    11. ., 2014. "Devolution, city governance and economic performance," Chapters, in: Urban Economics and Urban Policy, chapter 7, pages 157-184, Edward Elgar Publishing.
    12. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2013. "On the determinants of local government debt: Does one size fit all?," Working Papers 2013/16, Economics Department, Universitat Jaume I, Castellón (Spain).
    13. Stefano Magrini & Margherita Gerolimetto & Hasan Engin Duran, 2011. "Distortions in Cross-Sectional Convergence Analysis when the Aggregate Business Cycle is Incomplete," Working Papers 2011_07, Department of Economics, University of Venice "Ca' Foscari".

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    More about this item

    Keywords

    Economic dividend; devolution; spatial disparities; spatial economic policy; decentralisation; UK;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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