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The Case for Regional Policy: Design and Evaluation
Authors
Eduardo Amaral Haddad
Carlos R. Azzoni
February 15, 2020
Related topics: 
Economy
Regional integration
Sectorial policies and structural transformation

Is regional policy necessary? If so, under what circumstances? The first part of the chapter discusses the rationale behind the existence of (or the need for) regional policies in general. Cases in which excessive concentration or inequality hinders national economic growth are natural candidates for regional policies. If concentration and inequality favor national growth and competitiveness, regional interventions call for a different sort of argument, such as national unity or cohesion. Any regional policy has sectoral and national consequences, as well as any sectoral or national policy has regional consequences. Should public authorities engage in explicit regional policies (place-based) or in sectoral or social policies (people-based) with desirable regional implications? Finally, if regional policies are implemented, how to evaluate them? The chapter discusses these topics.

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