Spatial Economics

Spatial research provides evidence for the region on various aspects of its economic geography: understanding economic linkages, identifying sub-regions and working across administrative boundaries. Gathering accurate and objective knowledge of how the regional economy works in this way is critical; even more so in a future of budgetary constraints.

The Spatial Review is part of a series of thematic reviews. It paints an over-arching picture of the whole economy of the South West and the differences and similarities across its geographic parts, providing some useful context and insight against which more detailed local economic analysis can be considered.

The following research activity provides a true understanding of economic flows and linkages in and beyond the region: how places in the region really interact. This evidence should be used to guide policy development and to ensure that reduced resources can be concentrated where they will bring strong benefit.

South West Growth Scenarios - 2010

This suite of Growth Scenarios sets out the parameters of reasonable expectations for the South West economy over the next twenty years, exploring how these play out across the region.

Ranging from optimistic to pessimistic, South West Growth Scenarios sets out the impact of three potential alternate outcomes for the South West for the period 2010 to 2030 and explores these at a regional and sub-regional level, as well as discussing the macro-economic background. The report is accompanied by a comprehensive database for sub-regions and local areas within SW England.

South West Growth Scenarios – 2010 (pdf document)

Stronger trend growth forecasts (Excel document, 2.11MB)

Central trend growth forecasts (Excel document, 2.10MB)

Weaker trend growth forecasts (Excel document, 2.11MB)

Functional Economic Market Areas

Economic flows often overlap local authority boundaries. This means that the functional area over which the local economy and its key markets operate will not necessarily fit with administrative boundaries. Instead, key economic markets broadly match with sub-regions or city regions - known as functional economic market areas (FEMAs).

This research tool is a resource through which economic geographies of areas and places in the South West can be readily understood. It is not intended to arrive at a single set of sub-regional boundaries based on ‘best fit’ however, but by identifying FEMA boundaries, local authorities can consider the benefits of collaborating with neighbouring areas over a variety of key markets.

The Spatial Economic Analysis Tool is available on the South West Observatory website.

Productivity, Agglomeration and Spillovers

Spatial investment is partly designed to have benefits wider than those immediate local effects where investment takes place. Understanding current spillover effects from the regions’ major urban areas, for example, will help to maximise the effectiveness of place-based spending.

This research informs the debate about investment in priority places. Using evidence from 1998-2005, it suggests there is a link from spillovers to relative productivity, even though these benefits may not spillover far into the hinterland of urban centres. There is a virtuous circle when these elements are working together but there is fairly weak evidence that the more peripheral, rural areas benefit from this circle.

Productivity, Agglomeration and Spillovers (pdf document)

For further information please contact Jo.Johns@southwestrda.org.uk

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