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Regional Policy Spillovers: The National Impact of Demand-Side Policy in an Interregional Model of the UK Economy

Author

Listed:
  • Michelle Gilmartin

    (Fraser of Allander Institute, University of Strathclyde)

  • David Learmonth

    (Fraser of Allander Institute, University of Strathclyde)

  • Peter McGregor

    (Department of Economics, University of Strathclyde)

  • Kim Swales

    (Department of Economics, University of Strathclyde)

  • Karen Turner

    (Stirling Management School, Division of Economics)

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 non-target region are particularly sensitive to the treatment of the regional labour market.

Suggested Citation

  • Michelle Gilmartin & David Learmonth & Peter McGregor & Kim Swales & Karen Turner, 2011. "Regional Policy Spillovers: The National Impact of Demand-Side Policy in an Interregional Model of the UK Economy," Working Papers 1128, University of Strathclyde Business School, Department of Economics.
    • Handle: RePEc:str:wpaper:1128
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    References listed on IDEAS

    as
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    Cited by:

    1. Michelle Gilmartin & David Learmouth & J Kim Swales & Peter McGregor & Karen Turner, 2013. "Regional Policy Spillovers: The National Impact of Demand-Side Policy in an Interregional Model of the UK Economy," Environment and Planning A, , vol. 45(4), pages 814-834, April.
    2. Patrizio Lecca & Martin Christensen & Andrea Conte & Giovanni Mandras & Simone Salotti, 2020. "Upward pressure on wages and the interregional trade spillover effects under demand‐side shocks," Papers in Regional Science, Wiley Blackwell, vol. 99(1), pages 165-182, February.
    3. N. G. Dzhurka, 2018. "Development Trajectories of the Russian Far East: Evaluation Based on the Dynamic Model of Economic Interactions," Studies on Russian Economic Development, Springer, vol. 29(2), pages 144-152, March.

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    More about this item

    Keywords

    regional CGE modelling; migration; regional development policy;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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