Understanding core concepts in 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.

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.

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.

The drivers of productivity include skills, capital, innovation, enterprise and competition, and land. Read these blogs to find out why each driver is important, how policy can improve it, and what to consider when thinking about it.

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.

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.

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.

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.

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.

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.

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.

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.

How do crowding out, displacement, and leakage affect policy outcomes? And why do policymakers need to consider them? This blog explains these three concepts and what to consider when thinking about them.

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.