Regional Policy Spillovers

Michelle Gilmartin, David Learmonth, Peter McGregor, Kim Swales

Research output: Working paperDiscussion paper

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UK regional policy has been advocated as a means of reducing regional disparities and stimulating national growth. However, there is limited understanding of the interregional and national effects of such a policy. This paper uses an interregional computable general equilibrium model to identify the national impact of a policy-induced regional demand shock under alternative labour market closures. Our simulation results suggest that regional policy operating solely on the demand side has significant national impacts. Furthermore, the effects on the non-target region are particularly sensitive to the treatment of the regional labour market.
Original languageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Number of pages58
Publication statusPublished - 2011


  • regional CGE modelling
  • migration
  • regional development policy


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