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This paper analyses the cross-country impacts of the 2008 global financial crisis and the subsequent recovery process, with a specific focus on small economies. Key growth volatility variables highlight the critical exposure of small economies to the transmission of exogenous shocks owing to their high degrees of trade openness and inherent output and export specialisation, notably in financial services and tourism. These factors also constrain the mitigation of exogenous shocks giving rise to greater growth volatility. The paper demonstrates systematic asymmetries between countries with respect to the impact of the crisis and its persistence according to their size and patterns of sectoral specialisation. Small tourism-dependent economies and nonsovereign entities were particularly adversely affected although an offshore financial sector partly mitigated the impacts. The robustness of the findings is examined further in the appendix with regard to truncation problems arising from the use of international datasets.

This paper analyses the economic and geographic characteristics of the world’s principal non-sovereign territories in the context of the growth challenges facing small economies. These territories enjoy high degrees of policy autonomy within a complex array of relationships with their metropolitan countries. Seven of the ten metropolitan powers are European and account for 38 of the 49 inhabited non-sovereign territories. The territories’ distinct economic and geographic characteristics, notably small size and remoteness, have led to their adopting similar niche sectoral growth strategies to those of small sovereign states and a reliance upon tourism and financial services. In spite of the growth challenges faced, most of these territories have attained high levels of per capita gross national income, placing them in the World Bank High Income category. Global heating, economic crises and regional environmental shocks, along with growing international protectionist sentiments, however, raise critical questions regarding the continued viability of their traditional growth strategies, particularly their heavy reliance upon environmentally harmful long-haul air travel and cruise tourism. This paper bridges the gap between large-scale growth studies, which generally overlook non-sovereign entities, and single case studies to examine the determinants of the growth success of non-sovereign territories and their future growth challenges given the pressing need for both economic and environmental sustainability.

The world’s 49 inhabited non-sovereign overseas territories (NSTs) – 13 of which are UK overseas territories (OTs) or Crown Dependencies (CDs)1 – are neither fully independent nor integrated sub-na...

This chapter provides a critique of the contribution of tourism to the sustainable growth and prosperity of small economies in the context of the challenges posed by climate change. These economies generally face unique challenges because of their small size and exposure to global shocks and extreme climatic conditions. As major source of income and employment, tourism is a key element in the growth strategies of small economies. The principal determinants of growth of small economies are reviewed and the impacts of the tourism sector are analysed in terms of employment, multiplier effects and local linkages as well as its social and environmental impacts. The critical dependence of tourism upon long-haul air travel and large cruise ships represents a major, and possibly insuperable, challenge to the future viability of the sector in many small island economies.

This paper investigates the impact of the global 2008 crisis on the Caribbean region, with particular focus on its many small tourism-dependent economies. Specialization in tourism and, in some cases, offshore financial services has been a successful specialization strategy for many small economies but has made them highly susceptible to exogenous economic shocks. The paper utilizes cluster analysis to identify five distinct pre-crisis patterns of sectoral specialization in Caribbean economies generally. The 2008 crisis is shown to have had very distinct cluster-specific effects, with small economies specializing in tourism and financial services being the worst affected. These findings raise important questions regarding the future sustainability of this sectoral growth template, previously adopted by many successful small economies.

There is a growing interest in island economies within Europe. In the European Union (EU) this has led to enhanced Cohesion Policy support for islands, along with a number of other regions facing geographical challenges. Because of major problems with data, comparative research on islands across different EU member states has been of limited extent. This paper explores the use of national data sets to undertake comparative cross-country analysis of islands. The paper concentrates on two member states, Greece and Britain, which have large numbers of offshore islands. Data from national population censuses are drawn upon to allow typologies of the islands to be developed. These typologies are utilised to identify similarities and differences between British and Greek islands.

Methods for evaluating regional and urban policies have become increasingly sophisticated in recent years. However, this paper argues that the evaluation of Structural Funds programmes has systematically underplayed the effect of governance on both programme design and implementation. This paper uses the role of voluntary and community sector organizations in promoting community economic development initiatives within the European Union's Structural Funds programmes in South Yorkshire as a case study. An argument is made for extending evaluation methods, especially theory-based evaluation, through using multi-level governance as a “theory of change”. A key finding is that to explain how programmes work, evaluators need to consider formal partnership and management arrangements, their traditional focus, but also wider governance structures and the importance of informal policy networks. Such a focus allows for a consideration of issues such as resource mobilization and power.

Research on the economic performance of small states has concentrated on the implications of small size and thin local markets. An interesting feature of many of the world's smallest states, of which the Pacific region has many, is that they face additional challenges than just small size. Many are remote from global markets for their products. In addition, a large number are also islands, many of which are also mountainous. Many of the smaller states are not just islands, but are also archipelagos. Hence in addition to small size, many of the world's small states also exhibit four other characteristics that may affect their economic performance: insularity, remoteness, being archipelagos and being highly mountainous entities. This paper examines the nature of the challenges posed by these four characteristics and seeks to produce empirical evidence of how difficult it has been to overcome these challenges. The paper draws on empirical evidence for 126 very small global states, dependent territories and highly autonomous regions. The paper then turns to the position of the Pacific small states and dependent territories.

Armstrong H. and Wells P. (2006) Structural Funds and the evaluation of community economic development initiatives in the UK: a critical perspective, Regional Studies 40, 259–272. Since their inception within UK Structural Funds programmes in the 1990s, community economic development (CED) initiatives have experienced a rapid expansion. Evaluation methods have struggled to adapt to what was a radically new type of policy. This paper charts the rise of CED in the UK's Objective 1 and 2 programmes, and it examines the main problems posed by CED for Structural Funds monitoring and evaluation. Whilst progress in adapting the monitoring and evaluation methods to CED has been good, a number of key challenges remain to be faced by the eventual ex-post evaluations of the 2000–06 programmes and for the 2007–13 programming period. The key challenges are identified and possible ways forward are discussed. Community economic development Structural Funds Evaluation UK programmes Armstrong H. et Wells P. (2006) Les ...

The paper examines GDP per capita growth rated among subnational regions of the European Union between 1950 and 1990. Previous research has suggested that a slow process of convergence (or “catch-up”) has occurred over the period since 1950. Estimation of a catch-up growth model using a modified and larger set of regions than previously the case suggests that existing measures of convergence rates need to be revised downwards and that convergence rates have been reduced in the 1970s and 1980s compared with the 1960s.

Small nation-states and subnational regions share many similarities in terms of the challenges faced in implementing successful industrial policies. Globalization and the emergence of supranational organizations such as the European Union are also making the two sets of entities much more similar over time. This article argues that recent research advances are revealing that policy makers in small nations and regions can share important policy lessons. In particular, extensive recent research on industrial clusters, the determinants of economic growth, and new regional governance structures is generating a number of important policy lessons. The mutual lessons being exposed by this research suggest strategic policy stances for smaller nation-states and regions that significantly differ from those of larger countries and industrial giant regions.

This paper provides a critical survey of the principal theoretical issues and empirical findings relating to the analysis of the economic growth of small states. This analysis provides a brief critique of the inapplicability of the Lewis model of industrialization to small states. It draws upon insights derived from endogenous growth theory to demonstrate that growth in small states can be explained by the key 'conditioning' variables, notably openness to trade, human capital accumulation and location. Further, the impact of small size and 'islandness' are argued to play less significant roles than that generally ascribed to them in the literature. The findings provide useful policy lessons for other small states and developing countries.

Community economic development (CED) initiatives expanded rapidly in urban and regional policy in the 1990s. Traditional evaluation methodology has, however, proved to be extremely difficult to apply effectively to CED. This paper examines existing monitoring and evaluation procedures for CED, the problems faced in applying traditional methodology and possible ways forward to ensure that more effective monitoring and evaluation can be undertaken. Evidence is drawn from four detailed case studies of urban CED projects funded as part of the 1994-96 Yorkshire and the Humber Objective 2 Structural Funds programme. These case studies were deliberately designed to experiment with alternative quantitative and qualitative evaluation methods.

This paper is concerned with the relationship between economic growth in small states and their vulnerability. A critical argument in much of the literature on small states, particularly small island states, is that their growth performance is greatly constrained by their vulnerability to exogenous shocks because of their size. These shocks include economic, political and environmental factors, which together dampen the long-run growth rate of these economies. The paper makes use of a global small state data set and appropriate quantitative techniques to test the relationship between growth and vulnerability using the results of Briguglio's Vulnerability Index. The results highlight some of the conceptual shortcomings in the analytical literature on small states, particularly islands, as well as suggesting that the Vulnerability Index is mis-specified. Copyright © 2002 John Wiley & Sons, Ltd.

In recent years there has been considerable research attention directed at understanding the economic performance of sovereign very small states, many of which are also islands. This paper reviews the theoretical and conceptual arguments concerning the different challenges which small states and island economies face within an increasingly globalised system. The empirical evidence drawn from previous research by the authors stands in direct contrast to the theoretical literature. Very small states are shown to have performed generally very well and their economic performance is as good as, and often better, than that of larger states. Interestingly, whether a very small state is an island or not appears to have virtually no influence upon subsequent economic performance. The paper concludes with a comparison of very small states and non-sovereign island economies within Western Europe. Sovereign small states (whether islands or not) generally perform better than their non-sovereign island counterparts in Western Europe. The pattern is not, however, a uniform one. Some non-sovereign islands in Western Europe, particularly those able to develop summer vacation tourism activity have performed well.

This paper presents the evidence of the initial beneficial effects of Community Economic Development (CED) initiatives in Yorkshire and the Humber. The evidence is drawn from survey work undertaken as part of the formal evaluation of the region's 1994‐99 Structural Funds Objective 2 programme. Previous research on CED has tended to focus on longer-term benefits. This paper, however, concentrates on the neglected issue of the immediate economic impacts of CED. These will eventually be superseded by capacity building and community linking effects. In the meanwhile, however, given the very recent (late 1994) insertion of CED into Structural Funds programmes in the UK, they represent the principal existing quantifiable impacts. The paper shows that the preliminary impacts are not only important in their own right, but also have implications for the effective longer-term targeting of CED on its designated communities. Cet article cherche a presenter des preuves des premiers impacts favorables des actions prior...

This article examines the UK Regional Selective Assistance scheme, and critically appraises on-going reforms. These reforms have been triggered by the process of redrawing the map of eligible areas within new European Commission competition policy guidelines. A recent UK government White Paper on competitiveness has also led to significant changes being considered. It is argued that while the existing reforms have not fundamentally changed the nature of Regional Selective Assistance, they may well be harbingers of more threatening challenges, particularly after 2006.

(2000). An economic perspective on the assignment of policy powers: The case of tourism policy. Regional & Federal Studies: Vol. 10, Europe and the Regions: The Issue of Governance, pp. 78-106.

This note reports the results of a survey of firms operating in Britain concerning the impact on their costs and operations of the Social Action Programme. We find that the realised and anticipated adverse impacts of the legislation are rather limited, although both do appear to be greater for firms which are relatively large, skill intensive, and which have a substantial amount of trade with other EU countries. In particular, the survey results provide little evidence to suggest that the imposition of a minimum wage of £3.50 per hour would have a substantial adverse impact on employment. Evidence does, however, suggest that firms which pay relatively low wages are likely to be affected more than others by the legislation.

Whilst the local multiplier impacts of the annual operation of universities has been the subject of intensive research, the economic impacts of capital construction projects have been almost completely ignored. This paper presents the results of detailed analysis of capital projects at Lancaster University in 1993- The reasons for the radically different annual operation and construction multipliers estimated in the Lancaster study are examined. Despite the smaller size of construction multipliers it is argued that it is a serious mistake to estimate local construction multipliers by making simplifying assumptions on the size of the key parameters in the multiplier equations.

The paper presents the main conclusions from an in-depth study of the local economic, social and environmental impacts of Lancaster University in 1991/92. The likely impacts of further expansion at the University through to the year 2001 are explored. Lancaster University is revealed as having major environmental and social impacts as well as the more widely researched employment and income multiplier effects. Lessons are drawn from the Lancaster University experience which are likely to be of a general nature and can assist other universities seeking to maximise their local benefits and minimise their local cost impacts. The local impacts of universities are likely to need much more careful management than has occurred in the past if detrimental effects are to be avoided.

The European Union has developed a sophisticated and quite well-funded regional policy administered through its various structural funds. This policy now faces a number of severe challenges. Market forces are bringing about convergence at a snail's pace. With the regional impacts of the single market and monetary union ahead, and with the threat of enlargement to the east looming, reform is an urgent priority. Unfortunately, the existing policy structure is inadequate for the challenges ahead. This paper considers the weaknesses of the current policy and urges a radical shake-up.

This paper examines the relationship between savings and investment for the pre-1995 twelve members of the EU during the period 1971–1991. The results of the statistical analysis suggest that the capital market of the members of the EU resembles that of intra-national regions, implying a considerable degree of capital market integration. This conclusion, however, is subject to several caveats. The relationship between savings and investment in the case of Portugal, for example, is unusual.

Western Europe has a large number of sovereign micro-states and, in addition, there are also a number of regions of the European Union (EU) which have an unusually high degree of autonomy. This paper examines the economic performance of these micro-states and autonomous regions which is found to be superior to that of adjacent EU regions. The strong economic performance of these micro-states and autonomous regions is shown to be closely related to activity in the financial services sector, tourism and, where present, natural resources. Complex differences among the group of micro-states and autonomous regions are also revealed.

Local authorities in England and Wales have become important participants in economic development policy. This paper draws upon a comprehensive new date set covering the activities of the councils in the period 1990–92. The date set is unusual in that it allows the direct comparison of the activities of the three main groups of councils: county councils, metropolitan districts and non-metropolitan districts. The paper contrasts the degree of commitment to economic development policy and the range of initiatives of the three categories, and compares the manner in which the three types of councils package their initiatives in order to develop conherent strategies. The analysis reveals significant differences between the categories of councils and shows that despite the rapid spread of economic development policy amongst councils in more prosperous areas during the 1980s, the policies operated still depend on the economic and political characteristics of the councils.

This article examines the evolution and spatial variation in economic development policies adopted by nonmetropolitan district councils in England and Wales. Results from a recent survey reveal four distinct clusters of development strategies that range from activist to non-activist. Areas have tended to become more interventionist over time, with most district councils simply adding new programs to previous initiatives rather than starting over from scratch.

The paper presents the results of an analysis, using Keynesian local open economy multipliers, of the impact of Lancaster University upon income and employment in the local city and surrounding hinterland area. The results of the University impact analysis are contrasted with similar analyses of Heysham 2 nuclear power station and two local manufacturing firms. The results of the impact analysis are used in a speculative manner to consider the effects of a planned expansion of student numbers at Lancaster in the 1990s.

The Isle of Man experiences price levels which, for consumer convenience goods, are some 10% higher than those in nearby regions of the UK mainland. The observed price differentials indicate incomplete economic integration with the United Kingdom. This paper presents the results of two major research projects undertaken on behalf of the Isle of Man Board of Consumer Affairs by a team of researchers at Lancaster University. The research analyzes the role which transport costs to the island play in determining the observed price differentials between the Isle of Man and the United Kingdom. Transport costs (both marine and road haulage) were found to account for only a relatively small part of the observed price differentials. Other major causes of price differentials between the island economy and the mainland were found to include: high stockholding and inventory costs; the failure to exploit economies of scale fully in the on-island wholesaling and retailing sectors (as a result of small market size); and imperfect competition among island business sectors. The study highlights the difficulties faced in integrating island and mainland economies. Freight transport improvements alone cannot eliminate price differentials.

The widespread expansion of the financial sector over the last few years has generated a considerable increase of interest in the various offshore economies around Europe. In many cases these small economies possess the advantages of tax haven status which, together with special trade arrangements with the European Community, render them particularly attractive as locations for the rapidly growing service industries. The Isle of Man is one such community.

The paper examines trends in regional economic disparities within Great Britain since 1989, the year in which the major 1989-1993 reform of the structural funds associated with the Single Market began. Particular attention is concentrated on key economic indicators and on the traditional geographical pattern in Britain known as the «north-south divide». The implications for regional disparities of the early 1990s recession and the subsequent long period of sustained national economic growth are considered, as are the growing concerns with social exclusion at a local level below that of the main regions. A critical appraisal of the role of the EU's structural funds in addressing Britain's regional problems is undertaken, focusing on the three programme periods since 1989., L'article étudie dans leurs grandes lignes les disparités régionales qui sont apparues en Grande-Bretagne depuis 1989, date qui marque le lancement de la réforme de 1989-1993 des fonds structurels associés au Marché unique. Une attention particulière est portée aux indicateurs-clés de l'économie et au modèle géographique traditionnel en Grande-Bretagne, connu sous l'expression de «écart Nord-Sud». On envisage les conséquences sur les disparités régionales de la récession du début des années 90 et de la longue période de croissance économique nationale soutenue qui a suivi, de même que les inquiétudes croissantes suscitées par l'exclusion sociale qui atteint à certains endroits un niveau inférieur à celui de la plupart des régions. Le rôle des fonds structurels de l'Union européenne dans leur réponse aux problèmes des régions britanniques fait l'objet d'une évaluation critique axée sur les trois périodes d'action depuis 1989., Armstrong Harvey W. Regional disparities, the north-south divide and the role of the structural funds in Britain since 1989. In: Hommes et Terres du Nord, 2002/3. La Grande-Bretagne dans le nouveau siècle, sous la direction de Michèle Breuillard et Didier Paris. pp. 3-12.

This chapter considers whether there is a case for attempting to reconcile two recent research literatures in the European Union (EU). The first is the quickly expanding one on regional growth processes within the EU. The research here encompasses both theoretical analysis, involving several distinct growth theories, and empirical work largely based on REGIO data sets. The second literature is that which focuses on the evaluation of EU regional policy. It is a particularly appropriate time to consider the evaluation evidence given the recently completed round of official ex post evaluations of the 1994–1999 Structural Funds programmes.

The comparative economic performance of countries in Africa and Asia has attracted considerable attention from economists and policy-makers in recent years. In particular, significant contrasts have been made between the growth performances of the states in sub-Saharan African and the East and South-East Asian ‘tiger’ economies. From a different perspective, comparisons have also been drawn between sub-Saharan African states, South-Asia and China. Much less attention however, has been directed at the comparative economic performance of very small states or ‘micro-states’ in these two regions.

European regional policy has developed gradually since 1975. It has evolved into a more coherent policy and increased in scale. Responsibility is still divided between the European Commission and Member States.

(1985). Spatial variations in the male unemployment inflow rate. Applied Economics: Vol. 17, No. 1, pp. 41-54.

The extent of regional economic disparities in Britain has recently become the focus of considerable controversy. Attempts have been made to portray the existing situation in terms of a “North‐South divide” or as “two nations”. Opponents of this point of view have argued that no such stark division of the country exists, and that prosperous areas can be found in parts of the North just as depressed areas can be found in parts of the South. This paper considers the pattern of regional disparities which now prevails in Britain. Section I is a detailed presentation of the existing situation. Section II considers the question of how sharp a division there now is between different parts of Britain, followed, in Section III, by a discussion of the process of change which has brought about the regional disparities which we now observe. Implications for government policy are then considered.

Armstrong H. W. (1978) Community regional policy: a survey and critique, Reg. Studies 12, 511–528. European Community regional policy over recent years has shown a considerable degree of change and development. Major proposals introduced in 1973 were implemented in a much-revised form in 1975, with further substantial changes being made in 1978. This paper contains a survey of the economic case for a Community regional policy, followed by a critical appraisal of existing policies. The economic case for a Community regional policy is based on the need to reduce both the existing regional disparities in the E.E.C. and also regional disparities likely to arise as a consequence of further economic integration. The role of the European Regional Development Fund and other financial instruments, together with Community attempts to coordinate regional policies in the E.E.C. are examined.

In this paper the implications are considered of the 1984 reforms to the regional policy schemes operated by the Department of Trade and Industry and the European Community for the division of regional industrial policy powers. The division of regional industrial policy powers between the European Community, the national government, and regional and local organisations has been the subject of little debate in Britain. The 1984 reforms are likely to weaken the role of the national government relative to the other participants. The relative position of the national government has been slowly weakening since the early 1970s. In addition, changes in regional policy fashions in favour of assisting service industries, innovation, and small firms are likely eventually to favour further decentralisation of regional industrial policy powers.

Methods of measuring the degree to which spatially-discriminating industrial policy is centrally controlled have been the subject of little research. This paper presents a technique for analysing the division of spatial industrial policy powers in a multijurisdictional system. Assignment tables and the measurement of the degree of centralisation based upon a traditional classification of spatial industrial policy powers are considered first. An alternative classification of policy powers is then developed. This is used as the basis of a technique for estimating of the degree of centralised control. The technique is applied to the case of spatial industrial policy in Great Britain, 1983/84. The technique developed has general applicability. It has potential for cross-country comparisons and for assessing changes over time in the degree of centralisation of policy powers.

This paper examines spatial variations in unemployment stocks and flows in the North-West region of Great Britain. It utilises information describing the monthly flow of persons through the unemployment register. Combining the stock data with the flow data, it is possible to infer the mean duration of unemployment so that the relative contribution of the inflow rate and the mean duration of unemployment in determining spatial variations in the unemployment rate can be investigated. Some travel-to-work areas are shown to have a low inflow rate and a high mean duration of unemployment, whereas other areas have the reverse. This suggests the existence of quite different types of unemployment problems in different areas. The policy implications of this finding are discussed.

Since the 1920s, successive British governments have grappled with the problem which has become known as the north-south divide. Job opportunities have been consistently worse in many northern parts of Britain than in the south and this has led to successive attempts to create more jobs in areas of high unemployment. Britain is still faced, however, with severe regional problems. Regional differences in unemployment, for example, have been worse in the 1980s than at any time since the Great Depression in the 1930s.