1.

Class Title

Regional Adjustment and Development

credit value

12

standard / level

Masters (Diploma stage of Masters Programme)

core / optional

optional

semester

Semester 2 (except when taken by Open Learning)

pre-requisites

session

2005-06

2.

Contact details

Lecturer in Charge

Professor Kim Swales

telephone number

0141 548 3855

e-mail address

j.k.swales@strath.ac.uk

Administrator

Joyce Russell

telephone number

0141 548 3865

e-mail address

j.m.russell@strath.ac.uk

3.

Overview

Regional Adjustment and Development is a second semester elective module for the MSc programme and is a compulsory module for those students taking the Regional Economics pathway.

Objectives

The objective of this elective class is the study of the operation of economic forces over space, particularly, though not exclusively, focussing at the regional level. Alternative theoretical approaches will be identified and compared. Available empirical evidence will be assessed. The key issues under consideration will be regional adjustment and regional development. The analysis of these issues will form a solid basis for policy evaluation for both regional and national institutions.

4.

Syllabus

Lectures 1 and 2: Regional Labour Market

Wage setting

• Armstrong, H. and Taylor, J. (2000) Regional economics and policy, 3rd edition, Blackwell. Chapter 7.
• McCann, P. (2001) Urban and regional economics, Oxford University Press, Chapter 5.
• Harrigan, F, McGregor, P G, Swales, J K and Dourmashkin, N (1992) "Imperfect competition in regional labour markets: a computable general equilibrium analysis".Environment and Planning A, 1992, pp. 1463-1481
• Minford, P and Stoney, P, (1991) "Regional policy and market forces: a model and an assessment", in Bowen, A. and Mayhew, K (Eds)  Reducing Regional Inequalities,  Kogan Page, 1991.
• Walsh, J and Brown, W  "Regional earnings and pay flexibility" in Bowen and Mayhew.

Migration

• Armstrong and Taylor (2000) Regional economics and policy, 3rd edition, Blackwell. Chapter 6.
• McCann, P. (2001) Urban and regional economics, Oxford University Press, Chapter 5.
• McCormick, B. "Migration and regional policy" in Bowen and Mayhew.
• Muellbauer, J. and Murphy, A. "Regional economic disparities: the role of housing" in Bowen and Mayhew.

Lecture 3: Plant Mobility

• Armstrong and Taylor (2000) Regional Economics and Policy, 3rd edition, Blackwell. Chapter 13, section 13.3, pp 370-383.
• Ashcroft, B and Taylor, J  (1977) "The movement of manufacturing industry and the effect of regional policy" Oxford Economic Papers, Vol 29, March, pp84-101.
• Friedman J, Gerlowski D A, and Silberman J (1992) "What attracts foreign multinational corporations? Evidence from branch plant location in the United States" Journal of Regional Science, 32, pp403-418.
• Ashcroft, B. (1997)  "External investment and economic restructuring: the Scottish example" in W. Wallace (ed) Restructuring Economies: Poland and Scotland, pp 50-66, University of Warsaw, Faculty of Economics.

Lecture 4: Entrepreneurship

• Armstrong and Taylor (2000) Regional Economics and Policy, 3rd edition, Blackwell. Chapter 10.
• O'Farrell, P N (1986) "Entrepreneurship and regional development: some conceptual issues", Regional Studies, Vol. 20, pp 565-74.
• Ashcroft, B K, Love, J H and Malloy, E  (1991) "New firm formation in the UK counties with special reference to Scotland", Regional Studies, Vol. 25, No. 5, pp 395-409.
• Ashcroft, B K, and J H Love (1996) "Firm births and employment change in British counties", Papers in Regional Science 75, 4, pp 1-18.
• Global Entrepreneurship Monitor (GEM) see  http://www.gemconsortium.org

Lecture 5: Skill Mismatch

• Armstrong, H. and Taylor, J. (2000) Regional economics and policy, 3rd edition, Blackwell. Chapter 7.
• Minford, P and Stoney, P, (1991) "Regional policy and market forces: a model and an assessment", in Bowen, A. and Mayhew, K (Eds)  Reducing Regional Inequalities,  Kogan Page, 1991.

Lectures 6 and 7: Regional Growth

• Armstrong H. and Taylor, J. (2000) Regional economics and policy, 3rd edition, chpts 3 and 4.

Lecture 8: Regions and Nations

• Armstrong, H. and Taylor, J. (2000) Regional economics and policy, 3rd edition, Blackwell. Chapter 8.
• HM Treasury (2001), Productivity in the UK: 3 - the regional dimension, www.hm-treasury.gov.uk
• McGregor, P. G., J. K. Swales and Y. P. Yin (1999) "Spillover and Feedback Effects in General Equilibrium Interregional Models of the National Economy: A Requiem for Interregional Input-Output?", in G. J. D. Hewings, M. Sonis, M. Madden and Y. Kimura eds., Understanding and interpreting economic structure: essays in honour of Kenichi Miyazawa, Advances in Spatial Sciences, Springer-Verlag, Heidelberg, Germany.

Tutorial 1: Regional labour market and migration

"Do rigidities in regional wage setting hinder optimal spatial adjustment?"

Tutorial 2: Regional growth

"Is it necessary to accept that only supply-side effects or demand-side effects are responsible for regional growth disparities?"

5.

Class Materials

See Section 4. Syllabus for Reading.

6.

Assessment Structure

General

The overall mark for this class is based upon two components (i) an Assessed Essay that is due to be submitted by noon on Monday 17th March 2003 will account for 50% of the total mark for the module and (ii) an Examination held during the May 2003 diet that will account for 50% of the total mark for the module.

Assessed Essay

There will be one essay of not more than 2,000 words, which will count for 50% of the final mark for the class. Students must choose to do one essay from the two questions with recommended readings provided below.

Examination

The examination for this module is a two-hour unseen paper that will consist of two essay questions from a choice of six that will be examined in the May diet.

Module Specific Assessment Criteria

Your Assessed Essay and Examination answers are inter alia required to demonstrate:

• an ability to understand and apply key regional economic theory and/or techniques to regional economic problems and issues.
• an understanding of the role and limitations of policy in seeking to address regional economic problems
• an appreciation of the strengths and weaknesses of regional policy evaluation
• an ability to communicate effectively with other economists

7.

Learning Outcomes

By the end of the module, students will be able to:

• Identify the key elements involved in regional adjustment and development
• Discriminate between alternate explanations of regional adjustment and development
• Judge the available evidence applying to these alternate explanations
• Evaluate key policy initiatives, such as the support for clusters and FDI
• Appreciate the spatial trade-offs and spill-overs implicit in regional development
• Set regional development within a national setting

Practical Professional Skills

• Write clearly and concisely for a number of different audiences, including other economists and non-specialists.
• Oral communication skills.

8.

Elements of Teaching

This module employs a number of complimentary methods to assist you in achieving the intended learning outcomes:

• The lectures will provide you with an introduction to each of the topics covered in this module that will concentrate on the general principles involved, including outlines of key regional economic models. Particular emphasis will be placed on the way in which these models can be applied to problems and policy issues concerning regional adjustment and development.
  
  
• In tutorials you will be the given further opportunities to practice the skills involved in the application of simple economic models using applied examples drawn particularly from research on the Scottish economy. Your tutor will provide support and verbal feedback on your work. In addition, oral communication skills will be encouraged and enhanced through the presentation to the group of a short tutorial paper on the selected discussion topic (see below).
  
  
• The assessed essay for this module has a specifically applied focus with an emphasis on the application of models and techniques to the analysis of problems of regional adjustment and development.
  
  
• The reading for this module will expose you to some of the key sources of information on regional economies. This reading will provide further information, examples of the application of core models and discussion of the issues raised by the problems of regional adjustment and development.

9.

Teaching Staff

• Kim Swales: DUN 7.04, tel 0141 548 3966, j.k.swales@strath.ac.uk
• Brian Ashcroft: DUN 7.03, tel 0141 548 3957, b.k.ashcroft@strath.ac.uk
• Karen Turner DUN 6.11, tel 0141 548 3864, karen.turner@strath.ac.uk

10.

Additional Information

This elective class is taught using a combination of lectures (8 contact hours) and tutorials (4 contact hours).

The first 3 weeks involves only lectures and then the subsequent three weeks comprise a mixture of lectures and tutorials. The detailed timetable is given below.

11.

Complaints Procedure, Equal Opportunities and Disability Service

Information on the University's Complaints Procedure, Policy on Equal Opportunities and Provision for Students with Special Needs is contained in the MSc EMP Handbook 2005-06. This information is also available on the Faculty's Undergraduate Student Handbook and on the University's web pages: http://www.strath.ac.uk

Students' with Special Needs should see the Module Administrator, Joyce Russell, as soon as possible.  Students who believe they may need additional support or equipment, but have not spoken to anyone in the University about it yet should also contact the University's Disability Service, Level 4, Graham Hills Building, tel: 0141 548 3402, web: http://www.mis.strath.ac.uk/SSS