‘Place-based’ effects: A Northern perspective

Dr Andy Pike

‘Place-based’ effects: A Northern Perspective

Composition versus place-based effects

Encouraging greater sensitivity to place

What difference does place make?- Business start-ups

Why does place make spatial disparities matter?

Composition versus place-based effects

Competing explanations for spatial disparities:

Composition (‘sorting’) effects: heterogeneous

individuals or firms being in different places

Versus

place-based effects: differences in outcomes for identical

individuals or firms in different places

Composition versus place-based effects

Different implications for policy:

Composition effects dominant?: focus on why places are

different and whether (or not) this matters

Place-based effects significant?: focus on processes

resulting in identical individuals having different outcomes

depending on their location and whether (or not) policy

might change this

Encouraging greater sensitivity to place

Geography of place

Institutions and social context

Role of history

What difference does place make?

Business start-ups

VAT registrations per 10,000 resident adults ranked by Local Authority Area, 2005

Wansbeck 14

South Tyneside 14

Carrickfergus 14

Easington 15

Barrow-in-Furness

15

Redcar and Cleveland UA

16

Blyth Valley 16

Middlesbrough UA

17

Neath Port Talbot 17

Inverclyde 17

Source: Calculated from Small Business Service Analytical Unit Data

Why does place make spatial disparities matter?

Deeper understanding of their context and nature

Stronger explanation of their causes, extent and consequences

Normative dimension: Beyond the (national) efficiency versus (spatial) equity trade-off?

GDP per head (PPS) in Member States and Regional Extremes, 2004

Source: European Commission (2007) Growing Regions, Growing Europe: Fourth Report on Economic and Social Cohesion Report, CEC: Brussels

Source: Martin, R. (2008) ‘National Growth Versus Spatial Equality? A Cautionary Note on the New ‘Trade-Off’ Thinking in Regional Policy Discourse’, Regional Science Policy and Practice

Donor-recipient policy model

Growing region

Lagging region

Lagging region

Source: Pike, Rodríguez-Pose and Tomaney (2006)

Growth-oriented policy model

Growing region

Under-performing region

Under-performing region

Source: Pike, Rodríguez-Pose and Tomaney (2006)