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Do Institutions Matter for Regional Development?


  • Andrés Rodríguez-Pose


Rodríguez-Pose A. Do institutions matter for regional development?, Regional Studies . This paper discusses whether institutions matter for regional development and how to integrate them in regional development strategies. It is found that while institutions are crucial for economic development, generating an institution-based regional development strategy is likely to be undermined by the lack of definition of what are efficient institutions. Problems related to the measurement of institutions, to their space and time variability, to the difficulties in establishing the right mix of formal and informal institutions, and to the endogeneity between institutions and economic development make one-size-fits-all approaches to operationalizing institutions difficult. The paper posits that, in order to overcome these problems, it is crucial to distinguish between the 'institutional environment' and 'institutional arrangements', that is, to target not the institutions which shape the unique character of any territory, but the institutional factors that represent barriers for the efficacy of other factors influencing economic development (that is, education, training and skills, innovation, infrastructure and the like).

Suggested Citation

  • Andrés Rodríguez-Pose, 2013. "Do Institutions Matter for Regional Development?," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1034-1047, July.
  • Handle: RePEc:taf:regstd:v:47:y:2013:i:7:p:1034-1047 DOI: 10.1080/00343404.2012.748978

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    References listed on IDEAS

    1. Giulio Cainelli & Donato Iacobucci & Enrica Morganti, 2006. "Spatial agglomeration and business groups: New evidence from Italian industrial districts," Regional Studies, Taylor & Francis Journals, vol. 40(5), pages 507-518.
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    6. Antonio G. Calafati & Paolo Veneri, 2013. "Re-defining the Boundaries of Major Italian Cities," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 789-802, May.
    7. Antonio G. Calafati, 2005. "On the use of local labour systems," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2005(1).
    8. Peter Hall, 2009. "Looking Backward, Looking Forward: The City Region of the Mid-21st Century," Regional Studies, Taylor & Francis Journals, vol. 43(6), pages 803-817.
    9. John B Parr, 2008. "Cities and regions: problems and potentials," Environment and Planning A, Pion Ltd, London, vol. 40(12), pages 3009-3026, December.
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