In the summer 2023 What Works Growth published a blog series on understanding core concepts in local economic growth. This blog series, aimed primarily at those working in local and central government, provides deep-dives into various components of economic growth, and some key concepts that affect the impact of economic growth policies.
We published additional blogs on the drivers of productivity in early Autumn 2025. These blogs complement the blogs on GVA and productivity and add to the series published in summer 2023.
You can find all blogs below.
On completing the series, you can test your understanding with our light-hearted quiz, which you can find here.
Understanding local economic growth
A local economy grows when it increases the amount of goods and services it produces. Why is growth important? How can local government improve it? Read this blog to find out more.
Understanding local economic growth Understanding GVA
Gross value added (GVA) is a way of measuring the output of goods and services. Read this blog to find more on how GVA is calculated, how it can be increased, and what you need to consider when thinking about it.
Understanding GVA Understanding productivity
Productivity measures how efficiently labour and capital (inputs) are converted into goods and services (outputs). Read this blog to find out why it is important, how policy can improve it, and what to consider when thinking about it.
Understanding productivity Understanding the drivers of productivity
Understanding efficiency and equity
Economic efficiency is about making the most of scarce resources, while equity is about fairness. Why are they often considered the two main reason for policymakers to intervene in the economy? And what do policymakers need to consider when thinking about them? Find out more in this blog.
Understanding efficiency and equity Understanding spatial disparities
Spatial disparities occur when socio-economic outcomes differ across places. This blog explains when they occur, how they affect policy, and why policymakers need to consider it.
Understanding spatial disparities Understanding supply and demand
Supply is the provision of a good or service, and demand is a willingness to consume or use that good or service. This blog explains how they affect wider issues in the local economy and why policymakers need to consider them.
Understanding supply and demand Understanding market failures
A market failure occurs when the market does not adequately provide the supply, demand or equilibrium needed. Why are they important? How can they affect policy decisions? Find out more in this blog.
Understanding market failures Understanding tradable and non-tradable sectors
Tradable goods and services can be sold and consumed outside of the region they are produced, while non-tradable can only be bought and consumed where they are produced. This blog explains what they are and why policymakers need to think about them.
Understanding tradable and non-tradable sectors Understanding agglomeration
Agglomeration is the geographic concentration of economic activity. This blog explains its benefits, how it can affect policy outcomes, and why policymakers need to consider it.
Understanding agglomeration Understanding multipliers
Multiplier refers to the knock-on effect of spending on one part of the economy on other parts of the economy. This blog explains how multipliers can affect policy outcomes and what to consider when thinking about them.
Understanding multipliers Understanding additionality and deadweight
Additionality refers to the additional effect that would not have happened without the policy, while deadweight is when the incentives created by a policy generate a cost but do not produce the desired effects. This blog explains these two concepts, why they are important, and what to consider when thinking about them.
Understanding additionality and deadweight Understanding crowding out, displacement, and leakage
Understanding capitalisation
Capitalisation refers to the adjustment of property prices because of an amenity benefit (i.e. a nicer, safer or more accessible place). This blog explains how it can affect policy and what policymakers need to consider.
Understanding capitalisation 
