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Macro Policies and Regional Impacts in Norway

In: Regional Externalities

Author

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  • Steinar Johansen

    (Institute of Transport Economics)

Abstract

There are many aims for the Government’s policies. Different ministries care for different sector policies. Each ministry administers one (or several) policy sector(s), and normally has a bundle of policy measures to reach their aim(s). Applying a policy measure, directed towards reaching the aim(s) of a policy sector, affects many sectors of the economy, and therefore regional development. The impacts on regional development can be positive or negative, but are normally not intended. Since these impacts are not intended, the impacts on regional policies are externalities of sector polities. In this chapter, I look into a broad set of Norwegian fiscal and non-fiscal sector policies, and discuss their impacts on regional development. The impacts of different policies on regional development are compared and rated according to their significance and magnitude. The chapter illustrates that sector policies, including macro economic policies, influence regional development in different parts of the country differently, and that the non-intended impacts of sector policies are significantly more important for influencing regional development than specific regional and periphery policies. Most significant are the welfare policies, including transfers to local governments and the social security system. Among industrial transfers, agricultural policies have the most significant impacts on regional development.

Suggested Citation

  • Steinar Johansen, 2007. "Macro Policies and Regional Impacts in Norway," Springer Books, in: Wim Heijman (ed.), Regional Externalities, chapter 14, pages 287-306, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-35484-0_14
    DOI: 10.1007/978-3-540-35484-0_14
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