Economics of devolution/decentralization in the UK: some questions and answers

P.G. McGregor, K. Swales

Research output: Contribution to journalArticle

17 Citations (Scopus)

Abstract

The paper explores the economic implications of the radical process of devolution, decentralization and delegation of decision-making and policy delivery initiated by the post-1997 UK Labour Government. It is argued that the economies of all the presently devolved regions ultimately suffer if the Barnett Formula is rigorously imposed. It is shown that the efficiency of devolving fiscal authority involves a balance of positive and negative elements (depending on wage bargaining and migration responses). It is then argued that delegation/devolution of regional economic development policies, while exploiting regional information advantages, neglects regional economic interdependence, so there are potential gains from greater cooperation/coordination.
LanguageEnglish
Pages477-494
Number of pages17
JournalRegional Studies
Volume39
Issue number4
DOIs
Publication statusPublished - Jun 2005

Fingerprint

devolution
decentralization
bargaining
fiscal authorities
economics
wage
economic interdependence
economic development
labor
decision making
development policy
neglect
migration
efficiency
economy
policy
co-operation
co-ordination

Keywords

  • economics of devolution
  • decentralization
  • fiscal federalism
  • Barnett Formula
  • Tartan tax
  • regional economic development

Cite this

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Economics of devolution/decentralization in the UK: some questions and answers. / McGregor, P.G.; Swales, K.

In: Regional Studies, Vol. 39, No. 4, 06.2005, p. 477-494.

Research output: Contribution to journalArticle

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