Local Economic Growth Research Articles

Kambo tourism village masterplan: Community participation in tourism development

This study explores the application of the co-design approach in participatory planning for the development of Kambo Tourism Village, located at the intersection of urban and rural areas in Indonesia. By combining the Delphi Consensus Method and Analytic Hierarchy Process (AHP), the study successfully identified and prioritized key aspects in the planning process, with a primary focus on local community participation. The results indicate that the co-design approach is effective in creating a masterplan that not only aligns with the needs and aspirations of the community but also supports the sustainability and inclusiveness of tourism village development. AHP results reveal that local community participation was assigned the highest priority with a weight of 0.35, followed by stakeholder collaboration with a weight of 0.27. Community participation not only contributed to the creation of a well-structured tourism village masterplan but also enhanced human resource quality and strengthened stakeholder collaboration. The impact of this participatory planning process includes increased national recognition for Kambo Village, the village’s success in receiving awards, and local economic growth. Moreover, the study identified a gap between the calculated and expected weights in the AHP process, highlighting the complexity of aligning diverse stakeholder perspectives. These findings offer both practical and theoretical contributions and open opportunities for further research to address the challenges of participatory planning in the context of tourism villages.

Rethinking Local Government Asset Management in Indonesia: Governance, Planning, and Policy Evaluation

Effective asset management is essential for enhancing operational efficiency and achieving sustainable development within local governments in Indonesia. This study explores key challenges in asset management, focusing on governance, planning, and policy evaluation. Several critical issues are identified: fragmented governance, insufficient transparency and coordination, outdated asset inventories, and misalignment between asset management practices and broader development goals. Policy evaluation mechanisms are also inadequate, failing to measure asset utilisation effectively. These challenges lead to inefficiencies in resource allocation, underutilisation of assets, and missed opportunities for local economic growth. The findings align with Sustainable Development Goals (SDGs), particularly SDG 11 (Sustainable Cities and Communities), which promotes efficient resource use, and SDG 9 (Industry, Innovation, and Infrastructure), which supports enhanced infrastructure management. Addressing these goals enables local governments to align asset management strategies with broader sustainability objectives, fostering equitable growth and long-term development. Through a qualitative literature review, this study analyses data from government reports and prior research to highlight these challenges and propose solutions. An integrated approach—aligning governance frameworks, improving asset management planning, and strengthening policy evaluation—can overcome the identified barriers. By adopting this model, local governments can optimise asset management, leading to improved efficiency, better resource utilisation, and sustainable development. Future research should explore applying this framework across regions in Indonesia to validate its effectiveness.

Politics and city growth in Italy: Do connections matter?

AbstractIn this paper, I assess the existence of a political connection premium for Italian municipalities during the so-called “Second Republic” (1991–2011). The early 1990s witnessed a seminal event in Italian political history with the “Mani Pulite” (“Clean Hands”) investigation following the fall of the Berlin Wall. Subsequently, major political parties dissolved, culminating in a bipolar political landscape characterized by cyclical alternation between center-right and center-left factions (extending until at least 2011). Exploiting population data on small and medium-sized Italian municipalities between 1991 and 2011, I found that “politically connected” municipalities showed a population premium of about 2.5% compared to “non-politically connected” ones. The results are robust to NUTS-3 fixed effects, to a comprehensive set of controls, and to a full set of robustness checks. The relationship is confirmed using aggregate municipal income data as an additional proxy of local economic growth. Over and above this, social capital and the quality of local institutions seem to play a pivotal role in enabling the political connection. Election-related checks suggest the connection as two-way: using municipal data from the 2013 and 2018 general elections, I found that the treated municipalities depicted a higher turnout and fewer populist votes.

The Development of Characteristic Towns in China - Take Yangzhou as an Example

The construction of characteristic towns has been popular in recent years. These towns are trying to utilize their distinctive features to create competitive advantages and foster local economic growth. Among all types of towns, its evident that significant opportunities exist for developing tourism-focused characteristic towns in China. This paper's primary case study centers on Yangzhou, a town renowned for its rich tourism tradition in China. Also, a comparative case of Xi'an provides insights into the operational patterns and strategic advantages in tourism development. Methodologically, a hybrid approach is employed, including direct observations and a tailored survey to assess the impact of tourism on Yangzhou's residents. The findings from this research are anticipated to offer targeted recommendations for enhancing tourism development and resident satisfaction in characteristic towns like Yangzhou. Overall, this essay provides a comprehensive analysis of the factors contributing to the success of characteristic towns in China, with a focus on tourism, cultural and technological integration, and sustainable community development.

Exploring the Nexus between Endogenous Development and Local Economic Development: The Experience of Tamale Metropolis in Ghana

This paper explores the relationship between Endogenous Development (ED) and Local Economic Development (LED) in the Tamale Metropolis, Ghana. ED emphasises locally driven initiatives that leverage indigenous knowledge, resources, and cultural practices, while LED focuses on promoting economic growth and sustainability through local-level collaboration. The study examines how ED practices, such as community- based agricultural activities and cooperatives, contribute to local economic growth, job creation, and social cohesion in Tamale. It also identifies key challenges, including weak governance frameworks, socio-cultural barriers, and limited access to finance, which hinder the effective integration of ED into broader LED strategies. Despite these obstacles, opportunities exist to strengthen the synergy between ED and LED through enhanced community participation, capacity building, and public- private partnerships. This paper argues that aligning ED with LED offers a sustainable development model that can address both economic and social challenges in the region. Recommendations for policymakers include improving local governance structures, fostering inclusive development policies, and creating supportive environments for community-driven initiatives. The findings highlight the need for context-sensitive development strategies that empower local communities to take ownership of their development pathways while contributing to sustainable economic growth.

Agricultural Strategies of Young Farmers on Small-Scale Land in Sriharjo, Bantul

Abstract: The agricultural situation in the Special Region of Yogyakarta is becoming increasingly concerning. The number of farmers is declining, and young people are showing less interest in agriculture. This has led to problems with production output and a food security crisis. A solution to these challenges is to empower youth to engage in farming. The aim of this study is to identify groups of young farmers and the efforts made to address current challenges. The unit of analysis in this study is youth groups involved in farming activities on limited land. The research was conducted with a youth farming group called Taruna Tani Hijaunya Cinta in Sriharjo Village, Bantul. A case study design was employed, using in-depth interviews conducted both in person and via telephone. The research was carried out from January to June 2022, with limited observations and interviews due to the COVID-19 pandemic. To supplement the data, document and photo collection from the farmer group was also conducted. Thematic analysis was used to analyze various data sources. The findings of this study indicate that the majority of the group's members are children of farmers aged 17-35, with educational backgrounds ranging from secondary school to university students. The results show that the use of technology in farming, the development of social media for marketing, and the creation of agro-tourism have enhanced the competitiveness of young people in the agricultural sector, created new business opportunities, and stimulated local economic growth. For long-term sustainability, it is recommended that the government and educational institutions strengthen training and education programs for youth to enable them to continue innovating and adapting to market changes. Keywords: Limited Land Agriculture, Young Farmers, Youth

Structural transformation without industrialization? Evidence from Tanzanian consumers

AbstractExport‐oriented industrialization was central to many Asian countries' structural transformation processes, but many African countries are bypassing industrialization, and the prospects for competing in global manufacturing markets are poor. Alternative structural transformation pathways all rely on domestic markets, and thus understanding their trajectories requires uncovering consumer preferences. Using detailed household expenditures data from a nationally representative panel survey in Tanzania, I estimate a flexible, stylized consumer demand system. I recover estimates of expenditure elasticities of demand for goods, services, and food in the aggregate, along with price elasticities of demand, identified using within‐household variation in prices and expenditures. I find that, across the expenditures distribution and in both rural and urban areas, consumer preferences are service facing. In particular, I show that (1) consumers sharply increase spending on services relative to goods and food as incomes increase; (2) demand for services in the aggregate is somewhat sensitive to changes in service prices; and (3) food, goods, and services are substitutes for each other. On one hand, a high propensity to consume the types of services that generate large local economic growth multipliers is consistent with driving growth in service sector employment. However, sustained growth in the long run may be limited because these services are low productivity and nontradable, and domestic markets are size constrained.

R&D investments, ownership and local firm growth

Abstract How do research and development (R&D) investments stimulate the local economy? Our paper complements and extends the voluminous literature on the externalities of R&D investments by looking at internal firm growth across regions and the “spillovers” from R&D workers on other workers within the same firm. More specifically, we examine how R&D investments affect the change in employment and productivity in the same firm over time. We also investigate the differences that come with domestic or foreign ownership. Combining data from the Swedish biennial survey series on R&D with firm and establishment registers, we find that R&D-stimulated growth is a localized phenomenon: firms tend to grow in the same regions where they invest in R&D activities. This link is particularly strong for employment effects. While we find that the positive association between R&D and labor productivity holds for all firms, growth effects on local employment are limited to domestically owned firms, especially in manufacturing. The results strengthen our understanding of the correlation between R&D and firm growth on a local level, and contribute to both the academic and policy debate on the effects of globalization on local economic growth.

Rock Mechanical Properties and Resource Potential of Dimensional Stone and Terrazzo in Tigray, Ethiopia: A Geological and Geomechanical Assessment

Dimension stone and terrazzo are quarried rocks following specific dimensions, generally huge in tonnage than ore minerals. Dimension stone and Terrazo resource development opportunities in the Tigray Region, Ethiopia, are studied regarding their potential to make dimension and terrazzo, geology and deposit nature, physio-mechanical properties, rock petrography, and opportunity for exploitation. The granite and marble are quarried as dimension stones and they meet the quality parameters of the rocks, which include, being durable, easy to quarry, work, cut, and polish. It was conducted through the integration of new geological descriptions, interpretation of thin sections, and physico-mechanical tests. Both surface and quarry rock samples were used for the study. 15 from granite and 15 from marble deposits in total 30 samples were used for petrographic analysis and physico-mechanical tests. Based on petrographic and physicomechanical results, granite is harder than marble this may be due to silicates being less dissolved than carbonates. The accessory minerals in both granite and marble deposits limit the quality of the deposits as being impurities. The integrated results indicate that the marble and granite deposits in the area are good in quality and quantity. In addition, they are geologically widespread, technologically do not need sophisticated technology and economically they do not need huge investment and have less effect upon the environment. Diamond wire saws and diamond belt saws separated the dimension stone, which are oblate to curved in shape with 1m width. In the area, investment has been at a relatively low stage more investment will significantly increase production of the dimension stone for local usage, export, and economic growth of the region.

The Impact of Digital Marketing on the Performance of SMEs: An Analytical Study in Light of Modern Digital Transformations

This research intends to evaluate the effect on the performance of small and medium enterprises (SMEs) of technological developments, including digital marketing, and to determine the variables that affect the relationship. Because these businesses are essential to driving local economies, boosting local economic growth, and creating job opportunities, this is a very important question, and figuring out how to best help them succeed through digital marketing is critical. The data were generated from a sample of 190 marketing companies, and each of the managers of these companies was surveyed for the information needed. This research focuses on the impact of SMEs’ performance through digital marketing strategies, including online advertising, social media marketing, search engine optimization (SEO), and customer engagement through digital channels. A further analysis was performed looking at the mediating effect of digital transformation on the relationship between digital marketing and firm performance. The theoretical lens in the current study is the Technology Acceptance Model (TAM), which argues that technology use depends on perceived use and perceived usefulness. The results revealed that digital marketing is essential for SME effectiveness, as a driver of digital transformation, leading to stronger economic results and an enlarged market presence. Engagement with customers on digital channels to understand their behavior and preferences helps organizations create better experiences and products, and sell smarter as well. This offers application insights to the practitioners and proves the empirical data telling the SMEs how to plan the adoption of digital marketing. It also offers policy recommendations to authorities on how to promote digital innovation and provide financial and technical assistance to SMEs in this vital area.

Digital Marketing Strategy for MSMEs to Increase Competitiveness of Local Products

General background in the current digital era, small and medium enterprises (MSMEs) are a vital component of local economic development, particularly in rural areas. Specific background MSMEs producing local products such as bags and suitcases are prominent in certain regions, but face significant marketing challenges. Knowledge gap: However, few studies have explored the application of digital marketing strategies to improve the competitiveness of local MSME products.This study aims to analyze the application of digital marketing as a marketing strategy for local village products to increase the competitiveness of MSMEs using a SWOT analysis approach. The results show that MSMEs need strong government and institutional support to overcome market barriers and adopt advanced marketing techniques. The findings emphasize the importance of training and mentoring programs to enhance technical and managerial skills, as well as the introduction of new technology. Additionally, creating a community of craftsmen and entrepreneurs can foster knowledge-sharing and expand business networks, contributing positively to the competitiveness of local products. Novelty the study introduces a comprehensive approach that combines digital marketing and community building, which has not been extensively studied in the context of rural MSMEs. The implications of this research suggest that by leveraging digital platforms and forming supportive networks, MSMEs can increase their market reach and competitiveness, contributing significantly to local economic growth. Highlights: MSMEs require digital marketing strategies to boost product competitiveness. Government support and training are crucial for overcoming market challenges. Community-building among craftsmen enhances business networks and knowledge-sharing. Keywords: MSMEs, Digital Marketing, Competitiveness, Local Products, SWOT

The Role of Village Fund in Local Economic Development through Revamping the Bah Biak Waterfall Ecotourism Area

The Village Fund (VF) drives local economic growth by fostering ecotourism development. This study investigates the impact of the VF program on Local Economic Development (LED) in the Bah Biak Waterfall Ecotourism area, located in Sidamanik Sub-district, Simalungun Regency, North Sumatra. The VF program aims to enhance community income, create employment opportunities, and improve the productive capacity of rural communities. We use a purposive sampling method to collect data from 64 households out of 174 in the area. Critical indicators of LED, including local employment, household income, and expenditure, were analyzed using paired sample t-tests to compare conditions before and after using the VF. The results indicate a significant increase in local employment, household income, and expenditure following the utilization of the VF. This research underscores the importance of community participation in all stages of program activities, from planning to evaluation, and highlights the need for enhanced involvement in monitoring processes. The findings contribute to understanding how the VF can effectively support local economic development and provide recommendations for future ecotourism package development that integrates local resources and attractions. Future studies will focus on developing integrated ecotourism packages that combine multiple attractions and activities in the region, such as the panorama of tea plantations, Arabica coffee farming, creative economics based on beekeeping, and educational tourism related to sustainable practices.

STRATEGI PENINGKATAN DAYA SAING UMKM PUJASERA PAKUALAMAN SHIFT SORE MELALUI INOVASI DAN KOLABORASI: MENUJU KEUNGGULAN KOMPETITIF DI PASAR

This community service project aims to enhance the competitiveness and operational efficiency of Micro, Small, and Medium Enterprises (MSMEs) in the Pujasera Pakualaman Night Shift Unit, focusing on Lesehan Pakualaman Mbak Nila, Warung Anugerah, and Bakso Pak Riyanto. Through initial surveys and consultations with MSME vendors, several challenges, such as competition with similar products, payment issues, absence in e-commerce channels, and weather impacts, were identified. Implemented solutions include developing innovative menus, applying the Quick Response Code Indonesian Standard (QRIS) payment system, and integrating online ordering services. Training and empowerment processes were conducted to improve vendors' understanding of product innovation, digital payment technology, and e-commerce operational management. Implementing these solutions is expected to bring positive changes that strengthen the competitiveness and operational efficiency of MSMEs in Pujasera Pakualaman and contribute to local economic growth.

Harnessing Renewable Energy for Local Economic Growth: Future Research Themes and Strategies

Harnessing Renewable Energy for Local Economic Growth: Future Research Themes and Strategies

Rebranding and Digital Marketing of “Lejareh” Beverage at Ranting 'Aisyiyah Sidodadi

This community service aims to increase the competitiveness and sustainability of the Lejareh ‘Aisyiyah Beverage UMKM in Ranting ‘Aisyiyah Sidodadi, Candi, Sidoarjo through a product rebranding strategy. Lejareh drinks, which are local products based on natural ingredients, have great potential for further development to meet increasingly competitive market needs. Service activities include packaging improvements, upgrading packaging labels, as well as operating offline and digital marketing. The results of the activity showed a significant increase in brand image and market acceptance of the newly packaged product. Apart from that, knowledge of UMKM players regarding marketing strategies and business management has also increased. It is hoped that this positive impact can encourage local economic growth and strengthen the economic independence of the ‘Aisyiyah community in the Sidodadi area.

The Impact Of Female Entrepreneurs On Local Economies

This paper looks into the contribution of female entrepreneurs to regional economies and gives further detail on the contribution they may make to innovation, economic growth, and community development. It proves that women-owned businesses do not give variety to the market but are also significant in generating employment and reinvesting revenues into their local communities, which causes a trickle effect and increases well-being within the general economy. The paper will discuss case studies on successful and famous female entrepreneurs: Mindy Kaling, founder of Kaling International; Sara Blakely, founder of Spanx; Whitney Wolfe Herd, co-founder of Bumble; and Nadia Hussain, owner/creator of Nadia's Kitchen. The study of each woman will show precisely how these women have revolutionized industries and sparked local economies through their unique ideas and the leading force of this entrepreneurship. Success and stories of Sara Blakely with Spanx also prove that one entrepreneurial vision can change an entire industry in the blink of a second by creating a new market segment and thousands of jobs. Also, the creation of Bumble has disrupted not only social networking and dating apps but also created great economic benefits with regard to jobs and technology. Mindy Kaling’s impact through Kaling International showcases the potential for creative entrepreneurs to shape media and entertainment, influencing cultural narratives while supporting local talent and economic growth. Nadia Hussain’s Nadia’s Kitchen underscores the role of culinary entrepreneurship in promoting cultural diversity and community engagement, alongside creating new employment opportunities. The paper also explores the critical success factors contributing to the achievements of these female entrepreneurs, including access to funding, robust support networks, educational opportunities, and favorable policy environments. It highlights how these factors together help bring about entrepreneurship among women, succeeding in their barrier-breaking business enterprises with unique strengths. It therefore points to wider economic and social benefits of female entrepreneurship through in-depth examination of these factors. It goes further to argue for the necessity for continued and increased support for women in business through policies and initiatives that can further make their impact on local economies more solid. This, the research argues, is how investing in female entrepreneurs helps build economic development into more inclusive and resilient communities

Enhancing localisation in public procurements: A framework for evaluating suppliers' capabilities

This study investigates a framework for assessing suppliers' capabilities in public procurements to bolster localisation objectives. The study utilises the Action Design Research (ADR) methodology, combining the strengths of Action Research and Design Science, to examine the 'Ten Products Group' initiative within Iran's oil industry (2014–2023). This approach allows for the investigation of an applied problem within its specific contextual framework. The research highlights the importance of a comprehensive capability evaluation framework that includes qualitative assessments of suppliers' organisational, technological, and manufacturing capabilities. The framework incorporates both self-reporting and independent outside evaluation, enabling the inclusion of competent participants in public procurements and aligning contractual duties with the objective of localisation.The study emphasises the need for a transparent and thorough capability evaluation framework, contributing to the development of local industries and economic growth in situations where suppliers lack necessary capabilities. It suggests that a well-designed capability evaluation framework can facilitate the growth of local industries through public procurements, enabling the inclusion of competent suppliers and supporting economic development. The study's limitations include its focus on the context of localisation in public procurement and the potential challenges associated with implementing the proposed capability evaluation framework in practice.

Regional development through innovation: a proposal for a technological hub framework

Brazil has made progress in innovation, although unevenly across its regions, with the state of Acre still facing challenges in this sector. The creation of an innovation and technology hub at Senai/AC aims to promote regional development by bringing together government, companies, and academia to stimulate local economic growth. This article proposes a strategic framework for the implementation of the Senai/AC Innovation and Technology Hub, with the goal of strengthening the regional economy and increasing industrial competitiveness. Based on a Systematic Literature Review, the best global and regional practices for the creation of innovation ecosystems were identified. The qualitative analysis of 40 articles resulted in strategic guidelines adapted to local needs, highlighting the importance of effective governance, resource mobilization, collaborative environments, human capital development, and a culture of innovation. The Senai/AC Hub has the potential to act as a catalyst for the state's socioeconomic development and strengthen local industries. Future studies can assess the effectiveness of the guidelines and the hub's impact on regional production chains, comparing it with other hubs to identify synergies and best practices.

Assessing the synergistic effect of “pollution and carbon reduction” and “economic growth”: a perspective from bilateral trade between China and RCEP countries

IntroductionWith the accelerating process of globalization, trade activities have had profound impacts on both the environment and economic development.MethodsThis paper comprehensively evaluates the synergistic effect of bilateral trade on “pollution reduction” and “carbon mitigation,” as well as “economic growth,” utilizing panel data from China and RCEP countries spanning the period from 1997 to 2020.ResultsThe empirical results reveal that bilateral trade significantly propels economic growth in RCEP countries and exhibits a positive “pollution reduction” effect, whereas its “carbon reduction” effect remains uncertain. To delve into the underlying reasons for bilateral trade’s failure to effectively mitigate carbon emissions, this paper undertakes a mechanism test along two opposing paths. Notably, the influence of bilateral trade on economic growth and “pollution reduction” in RCEP countries varies regionally. Specifically, bilateral trade is more efficacious in fostering economic growth in ASEAN countries. Additionally, bilateral trade enhances environmental quality in ASEAN countries, yet it deteriorates in non-ASEAN countries. Furthermore, this paper examines the intricate relationship between bilateral trade, economic growth, and “pollution reduction” through the application of the PVAR model. It concludes that optimizing environmental quality in RCEP countries is conducive to both local economic growth and bilateral trade.ConclusionThis study not only bears significant implications for understanding the complex interplay between economic growth, environmental quality, trade liberalization, and environmental policies, but also provides invaluable guidance for policy formulation and implementation aimed at achieving green transformation and fostering sustainable economic development.

The Effect of Green Technology Implementation, Agricultural Product Innovation, and Green Technology Infrastructure Investment on Local Economic Growth in West Java

This study examines the effects of green technology implementation, agricultural product innovation, and green technology infrastructure investment on local economic growth in West Java. Utilizing a quantitative approach, data were collected from 120 respondents using a Likert scale and analyzed through Structural Equation Modeling-Partial Least Squares (SEM-PLS 3). The findings reveal that green technology implementation, agricultural product innovation, and green technology infrastructure investment all significantly and positively impact local economic growth. The results emphasize the importance of sustainable practices and innovation in fostering economic development. The study provides insights for policymakers and business leaders to promote green technology adoption, support agricultural innovation, and invest in infrastructure to drive sustainable economic growth. Future research should explore additional variables and broader geographical contexts to enhance the model's explanatory power.