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

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.

On the Determinants of Local Government Debt: Does One Size Fit All?

“…6 We can also consider the FORAL variable to be strongly linked to the issue of decentralization. Recent contributions have explored this issue in depth, such as, for instance, Lago-Peñas et al (2011), or Pike et al (2012. In the particular case of Spain, some authors such as BalaguerColl et al (2010BalaguerColl et al ( , 2013 have dealt with the specific issue of how the different levels of powers Spanish municipalities have might impact on the efficiency with which they provide their services.…”

Inclusive growth? The relationship between economic growth and poverty in British cities

“…For policymakers, understanding this relationship helps inform attempts to reduce poverty (OECD, 2014). A focus on cities is important both for theory and policy: cities are now seen by academics as important for economic growth (Storper, 2013); in Great Britain they are also being given new powers and responsibilities both to stimulate growth and address poverty (Pike et al, 2012;Lee et al, 2014).…”

Region and place I: Institutions

“…Amin and Thrift (1995) proposed the presence of 'institutional thickness' as explanation of the superior performance of some regions, although recent research has questioned the value of this metaphor and instead has emphasized quality and performance of institutions rather than their density because 'very similar institutional settings work in different ways in different territories' (Farole et al, 2011: 74). Analysis has involved the search for an elusive 'devolution dividend', while the role of institutions looms large in discussions of the 'learning region' or the performance of development agencies (Bellini et al, 2012;Morgan, 2006Morgan, , 2007Pike et al, 2012;Rodríguez-Pose and Gill, 2005). 'Leadership' has been suggested as another ingredient in 'regional success' (Sotarauta et al, 2012).…”