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

Author

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  • Andy Pike

    (Centre for Urban and Regional Development Studies (CURDS), Newcastle University, Newcastle Upon Tyne NE1 7RU, England)

  • Andrés Rodríguez-Pose

    (Department of Geography and Environment, London School of Economics, Houghton Street, London WC2A 2AE, England and IMDEA Social Sciences Institute, Madrid, Spain)

  • 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 an institutionalist and quantitative approach, we seek 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 its evolving historical context, 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 overridden 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, 2012. "In Search of the ‘Economic Dividend’ of Devolution: Spatial Disparities, Spatial Economic Policy, and Decentralisation in the UK," Environment and Planning C, , vol. 30(1), pages 10-28, February.
    • Handle: RePEc:sae:envirc:v:30:y:2012:i:1:p:10-28
    DOI: 10.1068/c10214r
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    References listed on IDEAS

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    Cited by:

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    2. Vassilis Tselios & Andres Rodriguez-Pose, 2022. "Can decentralisation help address poverty and social exclusion in Europe?," Papers in Evolutionary Economic Geography (PEEG) 2212, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2022.
    3. Andrés Rodríguez-Pose & Vassilis Tselios, 2019. "Well-being, Political Decentralisation and Governance Quality in Europe," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 20(1), pages 69-93, January.
    4. Vassilis Tselios & Andrés Rodríguez-Pose, 2020. "Did Decentralisation Affect Citizens’ Perception of the European Union? The Impact during the Height of Decentralisation in Europe," Economies, MDPI, vol. 8(2), pages 1-26, May.
    5. 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.
    6. Tarkan Cavusoglu & Oguzhan Dincer, 2015. "Does decentralization reduce income inequality? Only in rich states," Southern Economic Journal, John Wiley & Sons, vol. 82(1), pages 285-306, July.
    7. Mia Gray & Anna Barford, 2018. "The depths of the cuts: the uneven geography of local government austerity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(3), pages 541-563.
    8. Nupur Nirola & Sohini Sahu & Atrayee Choudhury, 2022. "Fiscal decentralization, regional disparity, and the role of corruption," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(3), pages 757-787, June.
    9. Muringani, Jonathan & Dahl Fitjar, Rune & Rodríguez-Pose, Andrés, 2019. "Decentralisation, quality of government and economic growth in the regions of the EU," LSE Research Online Documents on Economics 91023, London School of Economics and Political Science, LSE Library.
    10. Cavalieri, Marina & Ferrante, Livio, 2020. "Convergence, decentralization and spatial effects: An analysis of Italian regional health outcomes," Health Policy, Elsevier, vol. 124(2), pages 164-173.
    11. 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).

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