Regional policy spillovers: the national impact of demand-side policy in an interregional model of the UK economy

M. Gilmartin, D. Learmonth, J.K. Swales, P.G. McGregor, K. Turner

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

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 nontarget region are particularly sensitive to the treatment of the regional labour market.
LanguageEnglish
Pages814 – 834
Number of pages21
JournalEnvironment and Planning A
Volume45
Issue number4
DOIs
Publication statusPublished - 2013

Fingerprint

regional policy
labor market
computable general equilibrium analysis
economy
demand
regional labor market
equilibrium model
simulation
effect
policy
Spillover
Regional policy

Keywords

  • regional policy
  • computable general equilibrium model
  • labour market
  • income
  • regional CGE modelling
  • migration
  • regional development policy

Cite this

@article{fcc5fd00a18940eda63ee47f457a22eb,
title = "Regional policy spillovers: the national impact of demand-side policy in an interregional model of the UK economy",
abstract = "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 nontarget region are particularly sensitive to the treatment of the regional labour market.",
keywords = "regional policy, computable general equilibrium model, labour market, income, regional CGE modelling, migration, regional development policy",
author = "M. Gilmartin and D. Learmonth and J.K. Swales and P.G. McGregor and K. Turner",
year = "2013",
doi = "10.1068/a44355",
language = "English",
volume = "45",
pages = "814 – 834",
journal = "Environment and Planning A",
issn = "0308-518X",
number = "4",

}

Regional policy spillovers : the national impact of demand-side policy in an interregional model of the UK economy. / Gilmartin, M.; Learmonth, D.; Swales, J.K.; McGregor, P.G.; Turner, K.

In: Environment and Planning A, Vol. 45, No. 4, 2013, p. 814 – 834.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Regional policy spillovers

T2 - Environment and Planning A

AU - Gilmartin, M.

AU - Learmonth, D.

AU - Swales, J.K.

AU - McGregor, P.G.

AU - Turner, K.

PY - 2013

Y1 - 2013

N2 - 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 nontarget region are particularly sensitive to the treatment of the regional labour market.

AB - 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 nontarget region are particularly sensitive to the treatment of the regional labour market.

KW - regional policy

KW - computable general equilibrium model

KW - labour market

KW - income

KW - regional CGE modelling

KW - migration

KW - regional development policy

U2 - 10.1068/a44355

DO - 10.1068/a44355

M3 - Article

VL - 45

SP - 814

EP - 834

JO - Environment and Planning A

JF - Environment and Planning A

SN - 0308-518X

IS - 4

ER -