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Local Institutions, Productivity, Sustainability and Inclusivity Trade-offs

Authors: Charlotte Hoole*,
Topics: Urban and Regional Planning
Keywords: Productivity, Inclusive Growth, Sustainability, Institutions, Regions
Session Type: Paper
Presentation File: No File Uploaded

This research aims to identify institutional and organisational arrangements at the regional level that tend to lead to the 'good' management of policy trade-offs associated with increasing productivity. These trade-offs are related to increasing productivity and productivity growth rates (‘productivity’), sharing prosperity more widely (‘inclusivity’) and shifting to a low carbon economy that does not damage the environment (‘sustainability’). These are objectives that form the basis for targets in Local Economic Plans and Industrial Strategies in the UK where this research takes place.

Our starting assumption is that for any given economic endowment, different institutional and organisational arrangements in a region will produce different patterns of trade-off management, whereby trade-off management is ‘good’ when it reduces the need for compromise between certain objectives or when it helps regional policymakers understand both the nature of the trade-offs and the likely intended and unintended consequences of interventions. This is because different arrangements will lead to different strategies and to different ways of implementing these that will in turn lead to differences in firm behaviour, determining the resulting pattern of trade-offs. Our research will therefore attempt to identify differences at both these levels and the causal connections between them. While the impacts of specific policies on these objectives have been extensively researched less attention has been paid to the differing impact on the objectives of alternative institutional and organisational arrangements at the regional level, or to the way these arrangements affect the management of trade-offs.

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