Andrés Rodríguez-Pose

London School of Economics and Political Science | LSE · Department of Geography and Environment

Nation-states across the world are increasingly relinquishing powers to subnational tiers of government. This paper examines the drivers of this decentralisation revolution and the forces propelling it. While conventional wisdom has long attributed this phenomenon to the triumvirate of democracy, economic efficiency, and regional identity, the cont...

Declining fertility and the persistent underrepresentation of women in the labour market are key concerns of our time. The fact that they overlap is not fortuitous. Traditionally, women everywhere have faced a conflict in balancing their career ambitions with family responsibilities. Yet, the pressures arising from this conflict vary enormously fro...

This paper examines the complex relationship between political and social trust, government quality, and economic development across 208 regions in the European Union (EU). We use a pooled data generalized structural equation model (GSEM) to show that political trust serves as a fundamental driver of regional economic development in the EU. Politic...

Social capital has traditionally been viewed as a fundamental driver of democratic vitality. However, since the late-20th century, it has been suggested that social capital may also have adverse effects, potentially fostering totalitarian and populist ideologies. This paper examines the political implications of two different types of social capita...

Education plays a crucial role in promoting innovation, entrepreneurship, and equal opportunities in society, acting as a “social elevator.” However, an inequitable educational system can perpetuate inequalities, leading to significant social consequences. This paper examines two mechanisms through which schooling systems may generate or reinforce...

Artificial intelligence (AI) and robotics are revolutionising production, yet their potential to stimulate innovation and change innovation patterns remains underexplored. This paper examines whether AI and robotics can spearhead technological innovation, with a particular focus on their capacity to deliver where other policies have mostly failed:...

Poland presents a compelling case study in the rise of right-wing populism. In 2023, after eight years at the helm, the anti-elitist and Eurosceptic PiS party lost the parliamentary elections. This paper explores the geography of this political shift, analysing election results from 2011 to 2023 against the backdrop of regional socioeconomic divide...

Growing disparities in wealth, well-being, and access to services in Kazakhstanhave raised serious concerns among policymakers, especially since the January2022 protests. This paper evaluates these regional inequalities and presents thefindings from Kazakhstan’s inaugural well-being survey. The survey, based onglobal best practices, involves 4,032...

This article examines the effect of formal and informal institutional settings and of the governance of inter-organizational relationships on innovation at the cluster level. The research primarily relies on quantitative methods, utilizing data obtained from a survey involving 115 firms and 12 in-depth interviews. Supplementary qualitative informat...

How did the coronavirus pandemic affect the subjective well-being (SWB) of children? In this paper, we use data from the Children’s World Survey, encompassing 9,684 children aged 9 to 15 residing in nine European countries. Our goal is to evaluate the influence of both material —access to digital communication devices— and immaterial factors —infor...

The impacts of climate change are unevenly distributed across territories. Less is known about the potential effects of climate policies aimed at mitigating the negative consequences of climate change while transitioning economies towards low-carbon standards. This paper presents an analytical framework for identifying and assessing the regional im...

In a period of deep economic, social, and political transformation, regional disparities seem to be particularly resistant to change. The emergence of a global economy, the shift in production methods, and the greater mobility of capital, labour, and raw materials have not brought about a radical reshuffling of the prevailing regional disparities....

Solitude is a rising phenomenon in the western world. The share of people affected by solitude has been rising for some time and the Covid-19 pandemic has further brought this trend to the fore. Yet, we know next to nothing about the aggregate subnational economic impact of the rise in solitude. In this paper, we analyse the consequences of solitud...

Special economic zones (SEZs) are a popular policy tool for the promotion of economic development. However, questions remain about their economic contribution and about what aspects of SEZ policies are most relevant to investors. This article sheds light on these issues by comparing SEZs across Africa, Asia and Latin America. We find that while inv...

Economic change over the past 20 years has rendered many individuals and territories vulnerable, leading to greater interpersonal and interterritorial inequality. This rising inequality is seen as a root cause of populism. Yet, there is no comparative evidence as to whether this discontent is the consequence of localised interpersonal inequality or...

COVID-19 is mostly considered to have ravaged places with high levels of inequality and poverty. Yet, in the case of Europe, the evidence for this is limited. In this paper we address this gap in our knowledge by exploring how regional variations in poverty, wealth and interpersonal inequality have shaped COVID-19-related excess mortality. The resu...

We analyse the firm‐level labour productivity growth returns of social capital —defined as a synthetic measure of ‘generalised trust’, ‘active participation’, and ‘social norms’— using a large sample of manufacturing firms in France, Germany, Italy, Portugal, and Spain. We find that firms’ labour productivity growth is higher in areas with a better...

Inward foreign direct investment (FDI) has generally been linked to higher wages, but evidence remains sparse on the overall effects of FDI on average wages, the wage gap between skilled and unskilled labour, and inter-industry heterogeneity. We address these issues for Mexican municipalities and industries for a period of increasing FDI and sector...

Decentralisation has frequently been sold as a means to increase well-being and development. Yet, questions remain as to whether decentralisation improves economic performance. This is possibly because decentralisation processes have often led to ‘unfunded mandates’, that is, a mismatch between the powers transferred to subnational tiers of governm...

Implicitly or explicitly, much innovation policy treats investments in research and development (R&D) as the main input to innovation. A large body of literature in innovation studies has challenged this, highlighting the role of external sources of innovation and of innovation based on learning by doing, using and interacting (DUI). Nonetheless, t...

Poverty reduction and the tackling of social exclusion are overarching goals of development and welfare policies. This paper explores the extent to which decentralization contributes to poverty and social exclusion alleviation in European countries and regions. We find evidence that increases in central government transfers of political, administra...

Populist movements, parties and leaders have gained influence in many countries, disrupting long-established patterns of party competition, impugning the legitimacy of representative institutions and sometimes actively weakening or coarsening government capabilities. By positing an acute contrast between the will of the people and established elite...

Research on the impact of decentralization has generally overlooked the fact that the economic returns of transferring powers and resources to subnational tiers of government greatly depend on the quality of the devolved government. Scholarly literature has also neglected that these returns may be similarly affected by the autonomy of neighbouring...

The concept of regional development trap refers to regions that face significant structural challenges in retrieving past dynamism or improving prosperity for their residents. This article introduces and measures the concept of the regional development trap for regions in Europe. The concept draws inspiration from the middle-income trap in internat...

We quantify the general equilibrium effects on economic growth of improving the quality of institutions at the regional level in the context of the implementation of the European Cohesion Policy for the European Union and the UK. The direct impact of changes in the quality of government is integrated in a general equilibrium model to analyse the sy...

Special Economic Zones (SEZs) are mushrooming across the developing world. Increasingly, policymakers resort to zones with the aim of turning around the economic fortunes of their countries. Zones are expected to deliver greater innovation, exports, knowledge and technological spillovers. Yet, little is known about the state of play of SEZs in Afri...

Why have some territories performed better than others in the fight against COVID‐19? This paper uses a novel dataset on excess mortality, trust and political polarization for 165 European regions to explore the role of social and political divisions in the remarkable regional differences in excess mortality during the first wave of the COVID‐19 pa...

This paper examines the link between increased trade and regional GDP growth across the regional income distribution in Greece during the post-EMU period (2000–2013). By means of quantile regression techniques, panel fixed effects and system generalized method of moments (GMM), we disentangle the effects of EU trade—trading with generally richer co...

Research and innovation policy aims to boost research output and university-industry collaboration (UIC) in part to allow firms access to leading scientific knowledge. As part of their mission, universities in many countries are expected to contribute to innovation in their regions. However, the relationship between research output and UIC is uncle...

European Union (EU) innovation policies have for long remained mostly research driven. The fundamental goal has been to achieve a rate of R&D investment of 3% of GDP. Small and medium-sized enterprise (SME) innovation, however, relies on a variety of internal sources —both R&D and non-R&D based— and external drivers, such as collaboration with othe...

Local institutions have long been regarded as key drivers of economic development. However, little is known about the role of institutions in preparing places to cope with public health crises and pandemics. This paper sheds light on how the nature of a local institution, city autonomy, influenced variations in the incidence of the Black Death —pos...

In 2000, Robert Putnam forecast that United States (US) democracy was at risk from the twin challenges of declining civic engagement and rising interpersonal inequality. Sixteen years later, his predictions were vindicated by the election of Donald Trump as president of the US. This paper analyses the extent to which the 2016 election of Donald Tru...

Do external shocks affect local government quality and, consequently, long-term economic development? The collapse in 1911 of the Qing Dynasty in China was one of the greatest institutional shocks in world history, marking the end of more than 2,000 years of imperial rule. We exploit this shock to examine the impact of changes in historic local gov...

This paper explores the effects of import competition on the manufacturing sector in Chile following the implementation of the country’s two largest Free Trade Agreements (FTA) (with the USA and China). Exploiting cross-industry variation in import exposure, we analyse the effects on manufacturing sales, employment and labour productivity at the fi...

Government support to promote firm-level innovation is seen as a crucial factor for economic growth. This support is frequently channeled through firm-level subsidies. Despite their relevance within the policy portfolio, there is an open academic debate on whether subsidies are effective for innovation. This is by no means related to a potential in...

Innovation, proxied by patent applications, in China is highly territorialised. The lion's share of the country's innovation is concentrated in its richest city-regions. Less developed cities —defined as cities whose GDP per capita is below 75% of the national average— also innovate but innovate far less. And how they manage to do so is not suffici...

This paper examines the effect of the COVID-19 pandemic and its related economic, fiscal, social and political fallout on cities and metropolitan regions. We assess the effect of the pandemic on urban economic geography at the intra- and inter-regional geographic scales in the context of four main forces: the social scarring instilled by the pandem...

Europe has witnessed a considerable labour productivity slowdown in recent decades. Many potential explanations have been proposed to address this productivity ‘puzzle’. However, how the quality of local institutions influences labour productivity has been overlooked by the literature. This article addresses this gap by evaluating how institutional...

Two of the most influential strands in economic geography and regional studies – evolutionary economic geography and global production networks – have run on parallel tracks with limited cross-fertilization. The Regional Studies Annual Lecture 2020 paper by Henry Yeung proposes building bridges across both strands to improve our understanding of th...

We analyse the investment-to-cash flow relationship in Europe using a sample of manufacturing small- and medium-sized enterprises (SME) over the period 2009–2016. We investigate the effect of regional institutional quality on the investment-to-cash flow sensitivity, finding that, although credit constraints remain a serious problem for European SME...

This paper examines the uneven geography of COVID‐19‐related excess mortality during the first wave of the pandemic in Europe, prior to assessing the factors behind the geographical differences in impact. The analysis of 206 regions across 23 European countries reveals a distinct COVID‐19 geography. Excess deaths were concentrated in a limited numb...

Intermediate cities have experienced economic dynamism in recent years, but, with the focus firmly on large metropoles and sprawling megacities, the development potential of intermediate cities has stayed out of the limelight. This paper upholds the relevance and potential of intermediate cities, arguing that they can play as important a role —if n...

In this study we investigate in how far firms in special economic zones (SEZs) have the potential to generate indirect benefits and knowledge spill-overs in the local economy through the creation of backward linkages with local suppliers. For this purpose, we map the linkages between SEZ firms and suppliers in the host economy in seven SEZs around...

Using a novel database of regional trade flows between 267 European regions for 2013, this paper examines how government quality affects trade between European Union (EU) regions. The results of a structural gravity cross-sectional analysis of trade show that trade across EU regions is highly influenced by differences in regional government quality...

Social capital is an important factor explaining differences in economic growth among regions. However, the key distinction between bonding social capital, which can lead to lock-in and myopia, and bridging social capital, which promotes knowledge flows across diverse groups, has been overlooked in growth research. In this paper, we address this sh...

This paper uses a novel, globally-harmonised city-level dataset —with cities defined at the Functional Urban Area (FUA) level— to revisit the link between urban concentration and country-level economic dynamics. The empirical analysis, involving 108 low- and high-income countries, examines how differences in urban concentration impinge on changes i...

Despite widespread interest in government quality and economic development, the role of sub-national government has been largely overlooked. This represents an omission in Africa, given ongoing processes of devolution in much of the continent. In this article, we consider the impact of sub-national government institutions on economic development in...

This article explores the role of subnational geography in the analysis of the consequences of Outward Foreign Direct Investment (OFDI) for workers performing different typologies of jobs. We qualify jobs according to their knowledge content, degree of tradability and response to agglomeration economies. While the former two dimensions are key to s...

The on-going COVID-19 crisis demonstrates how interlinked and networked our globalized society has become. It is not surprising that the world economy is increasingly studied through a network lens. In economic geography, the predominant approaches in this regard are global production networks (GPNs) and world city networks (WCNs). These have gener...

Some regions in Europe that have been heavily supported by the European Union’s Cohesion Policy have recently opted for parties with a strong Eurosceptic orientation. The results at the ballot box have been put forward as evidence that Cohesion Policy is ineffective for tackling the rising, European-wide wave of discontent. However, the evidence to...

This paper examines the relationship between credit constraints − proxied by the investment‐to‐cash flow sensitivity – and firm‐level economic performance − defined in terms of labor productivity – during the period 2009‐2016, using a sample of 22,380 manufacturing firms from 11 European countries. It also assesses how regional institutional qualit...

There is increasing interest in the potential of artificial intelligence and Big Data (e.g., generated via social media) to help understand economic outcomes. But can artificial intelligence models based on publicly available Big Data identify geographical differences in entrepreneurial personality or culture? We use a machine learning model based...

Manville, Lens, Mönkkönen’s reply to our ‘Housing, urban growth and inequalities’ Urban Studies article is welcome. However, it fails to engage with our two main criticisms of the housing-as-opportunity literature: that (a) deregulation and upzoning in large and dynamic cities are unlikely to benefit those at the bottom of the income pyramid facing...

This paper looks at the divergent economic trajectories of Barcelona and Madrid since Spain's transition to democracy. It highlights how Barcelona, the city that was better positioned four decades ago to emerge as the main Spanish economic hub, has lost out to Madrid. We argue that the contrasting trajectories of the two cities have less to do with...

This paper explores the nature and scale of inter-regional and inter-urban inequalities in the UK in the context of international comparisons and our aim is to identify the extent to which such inequalities are associated with strong national economic performance. In order to do this, we first discuss the evolution of UK interregional inequalities...

Populism is on the rise, especially in the developed world. It has gone from being a force to be reckoned with to becoming one of the main challenges for society today. But the causes behind its rise remain hotly debated. Many of the economic analyses of the ascent of populism have focused on growing inequalities – both from an interpersonal and te...

The aim of this paper is to assess the extent to which different levels of decentralisation across regions of the European Union (EU) affected citizens’ perceptions about European integration over the period 1973–2002. The paper uses Eurobarometer Surveys to explore by means of multinomial logistic regressions whether decentralisation was an import...

Innovation in cities is increasingly regarded as an outcome of two potential inputs: scientific activity and creativity. Recent firm level research has suggested that what really matters for innovation is the combination of these two inputs, rather than the mere presence of workers representing each group. Yet there is little evidence on whether th...

Entrepreneurship is sometimes portrayed as a cure-all solution for poverty reduction. Proponents argue it leads to job creation, higher incomes, and lower poverty rates in the cities in which it occurs. Others, by contrast, posit that many entrepreneurs are actually creating low-productivity firms serving local markets. Yet, despite this debate, li...

Does the variation in the quality of local government institutions affect the capacity of firms to innovate? This paper uses a unique dataset that combines the specific features of 2,700 firms with the institutional and socioeconomic characteristics of the 25 cities in China where they operate, in order to assess the extent to which institutional q...

Does past migration beget future migration? Do migrants from different backgrounds, origins and ethnicities, and separated by several generations always settle – in a path dependent way – in the same places? Is there a permanent separation between migration-prone and migration-averse areas? This paper examines whether that is the case by looking at...

Regions and cities face unceasing pressures to adapt in response to processes of globalisation, changes in industrial production, and new patterns of migration and trade. At the same time, the dominant development policies are proving less than capable of providing answers to these challenges. Strategies based on a mix of physical and human capital...

The introduction of smart specialization (S3) as a fundamental pillar of the 2014 reform of the EU cohesion policy is a significant strategic shift in European development intervention. S3 strategies aimed at mobilizing the economic potential of each country and region of the EU by allowing a more place‐based and bottom‐up approach to development....

Does population diversity matter for economic development in the long run? Is there a different impact of diversity across time? This paper traces the short-, medium- and long-term economic impact of population diversity resulting from the big migration waves of the late nineteenth and early twentieth centuries to the United States (US). Using cens...

This paper examines the role of the political and private interests of individual politicians in the geographical allocation of public investment, focusing on the case of Greece. The analysis extends over four decades, from the restoration of democracy in 1974 to the onset of the 2008 Great Recession. The results indicate that powerful politicians...

Support for parties opposed to European Union (EU) integration has risen rapidly, and a wave of discontent has taken over the EU. This discontent is purportedly driven by the very factors behind the surge of populism: differences in age, wealth, education, or economic and demographic trajectories. This paper maps the geography of EU discontent acro...

The role of cities in fostering innovation has for long been taken for granted. Agglomeration and the knowledge spillovers generated in dense urban environments have been considered fundamental drivers of innovation. This view has, however, become challenged by research questioning the returns to physical agglomeration and local networking, placing...

This paper assesses whether both the levels and the degree of change in government quality influence regional economic performance in the European Union and, in particular, in its lagging regions. The results of the econometric analysis, covering 249 NUTS-2 regions for the period 1999–2013, suggest that (1) government quality matters for regional g...

Urban economics and branches of mainstream economics – what we call the “housing as opportunity” school of thought – have been arguing that shortages of affordable housing in dense agglomerations represent a fundamental barrier for economic development. Housing shortages are considered to limit migration into thriving cities, curtailing their expan...

A growing amount of research explores how the allocation of regional development monies follows electoral reasons. Yet, the existing literature on distributive politics provides different and contrasting expectations on which geographical areas will be targeted. The paper focuses on proportional representation (PR) systems. While in such settings g...

Product innovation is widely thought to benefit from collaboration with both scientific and supply-chain partners. The combination of exploration and exploitation capacity, and of scientific and experience-based knowledge , are expected to yield multiplicative effects. However, the assumption that scientific and supply-chain collaboration are compl...

Economic growth in China in recent decades has largely rested on the dynamism of its cities. High economic growth has coincided with measures aimed at improving the efficiency of local governments and with a mounting political drive to curb corruption. Yet the connection between government institutions and urban growth in China remains poorly under...

Regional economic divergence has become a threat to economic progress, social cohesion and political stability in Europe. Market processes and policies that are supposed to spread prosperity and opportunity are no longer sufficiently effective. The evidence points to the existence of several different modes of regional economic performance in Europ...

The effect of decentralisation on regional economic growth is a hotly debated topic. In theory, decentralisation should entail welfare benefits by bringing government closer to the people. In practice, the benefits of decentralisation have been hard to prove. A problem is that the quality of regional governments is often lacking, or at least varies...

We investigate the extent to which regional institutional quality shapes firm labour productivity in western Europe, using a sample of manufacturing firms from Austria, Belgium, France, Germany, Italy, Portugal and Spain, observed over the period 2009‐2014. The results indicate that regional institutional quality positively affects firms' labour pr...

This paper examines if internal migrants at the turn of the twentieth century have influenced the long-term economic development of the counties where they settled over 100 years ago. Using Census microdata from 1880 and 1910, the distance travelled by American-born migrants between birthplace and county of residence is examined to assess its relev...

European nations allocate public sector resources with the general aim of increasing the well-being and welfare of their citizens through a fair and efficient distribution of these public goods and services. However, “who” delivers these goods and services and “how well” they are delivered are essential in determining outcomes in terms of well-bein...