The impact of regional development agencies on regional socio-economic development : implications for Gozo

Abstract

This dissertation evaluates the impact of Regional Development Agencies/Authorities (RDAs) across Europe on the socio-economic development of the region, and derive implications and conclusions regarding the potential effects of Gozo`s newly enacted RDA. This study utilises a mixed methodological approach featuring both quantitative and qualitative analyses. Regression analyses are conducted in order to estimate the impact that RDAs have on the socio-economic development of European regions with a degree of similarity to the island of Gozo. Both cross-sectional regression analyses and panel analyses are employed to study the impact of RDAs on both Subnational Human Development Index and Regional Gross Domestic Product per capita. An online survey is conducted with European RDAs to complement econometric investigations with practical experiences through an examination of their role in enhancing their regional development. Lastly, an ex-ante high-level evaluation of the Gozo Regional Development Authority (GRDA) is carried out, both in relation to theoretical insights and practical experiences attained from the econometric and survey analyses, to derive policy implications for the functioning of the GRDA and its likely effects on Gozo`s development. Regression analyses indicate a positive and significant effect on regional development, but an insignificant effect was found on regional GDP per capita. Survey results further confirm that European RDAs have significantly contributed towards the development of the region primarily through the development of innovation-driven strategies. This dissertation concludes that the introduction of the GRDA is a step forward in the right direction towards addressing the existing gap between Gozitans` needs and national political priorities via a place-based approach. The degree of success of the Agency can be enhanced if it is granted implementation powers and capabilities, and if it focuses more effectively on innovation in all areas of its activities.