Theories Of Regional Economic Development Research Articles

FORMATION AND EVOLUTION OF THE THEORY OF REGIONAL ECONOMICS IN CHINA

FORMATION AND EVOLUTION OF THE THEORY OF REGIONAL ECONOMICS IN CHINA

Industrial growth versus agricultural growth in eight post-communist countries

Several theories of regional economic development and structural economic transformation have emphasized the important role of agricultural development in industrialization and vice versa. In the view of Benjamin Franklin, the agricultural and nonagricultural sectors are competitive, whereas in Alexander Hamilton's opinion the two sectors are complementary. Does agricultural growth support or compete with industrial growth? To address this question, we examine the causal relationship between the sectoral output in agriculture and manufacturing in eight post-communist countries. The bootstrap panel Granger causality approach is utilized to detect the direction of causality. The findings show that the growth complementarity hypothesis is confirmed in five out of eight countries under review. Policy implications are discussed.

CONCEPTUAL FOUNDATIONS OF REGIONAL DEVELOPMENT IN THE CONTEXT OF REGIONAL FOREIGN ECONOMIC RELATIONS AMPLIFICATION

Topicality. The article explores the issue of determining the direction in which the region should develop its foreign economic relations, how to rebuild a regional economic system in order to realize their resources and opportunities for growth in the globalized international economy in the most effective way. Theoretical and conceptual foundations of the regional foreign economic relations development, analysed in this article, determine a role of commodity exports, imports of modern technologies, investment (including foreign capital), innovation, institutional environment and entrepreneurship for regional development. Among other issues addressed in this article, special attention was paid to analysis of changes in regional development paradigms.Aim and tasks. The aim of the article is to study theoretical and conceptual foundations of regional development through by means of regional foreign economic relations amplification. In addition, the objectives of the current study include: highlighting changes of scientific views on paradigms of regional development in terms of areas of amplification of regional foreign economic relations, identification of the main contradictions and temporal context of the proposed theories and concepts of regional development, addition to the main trends in the theoretical and conceptual basis of regional development in recent years.Research results. The article considers a formation of theories and concepts of regional development, which provide for the intensification of regional foreign economic relations. The analysis of theoretical and conceptual bases of regional foreign economic relations amplification testifies the transformation of paradigms of regional development according to a context of times in which there were changes of scientific views on the reasons and consequences of regional growth. The article examines the evolutionary transformation of regional economic development paradigms through the following theories: spatial location theory, theory of international (interregional) trade, Keynesian theories (export base theory and input-output model), neoclassical theories of regional economic development, concepts of economic rationalism, comparative, competitive and common advantages, theories of globalization, sustainable development, regional self-help and endogenous development, a new growth theory. Based on the analysis of the regional development theoretical foundations, the article establishes that the main theories and concepts of regional foreign economic relations mostly focused on consideration of such incentives as: capital investment, technological innovation, foreign trade, agglomeration effect (economies of scale), as well as a level of institution development.Conclusion. The article states that there is no single generally accepted theory for providing scientific approaches to a complementary amplification of regional foreign economic relations. Certain theories and concepts, which form theoretical foundations for the regional foreign economic relations amplification, have relatively practical application only in specific cases. Thus, by means of an application of the postulates of the theory of international and interregional trade, the optimal structure of the external trade turnover of the region and the parameters of determining the commodity positions for import substitution are determined; neoclassical theory of spatial equilibrium serves as a theoretical basis for choosing investment attraction’ direction in prioritized regional production and infrastructure facilities; new regional growth theories (including, of endogenous regional development concept) serve as a theoretical background for choosing tools for foreign economic activity intensification in order to ensure regional development. At the same time, achieving regional growth, in the modern sense, is not possible without considering principles of sustainable development and self-sufficiency of a territory, therefore, an amplification of foreign economic relations in the region, even in a globalized world, should be based mainly on endogenous factors, while strengthening its development with an innovation and investment components from the external environment.

Innovation Districts as a Strategy for Urban Economic Development: A Comparison of Four Cases.

This study investigates the urban economic development strategy of innovation districts. As the phenomenon of innovation districts currently is flourishing and expanding across the nation, it commands rigorous attention from those interested in understanding economic development in the United States. Researching the design, opportunities, and pitfalls associated with the economic development strategy will be valuable to policymakers. By studying innovation districts, we aim to provide practical guidance to governments, nonprofit organizations, and other interested actors as they consider devoting substantial effort and resources toward improving their local and regional economies. Because innovation districts are relatively new, this research does not claim to provide definitive empirical knowledge or results. Moreover, it is too early in the application of innovation districts to conduct widespread empirical evaluation. Instead, our approach focuses on examining four cases of innovation districts that present contrasting settings and policies. We assess the economic development efforts as they have progressed so far by drawing on existing theories of regional economic development and by relating the design and implementation of innovation district actions to stated and normative goals. In conducting this research relatively early in terms of innovation district applications, we anticipate the information to be opportune for the consideration of local economic development policymakers and stakeholders.

Cooperación Territorial y Desarrollo: una mirada desde la escala transregional y de los espacios metropolitanos, rurales y turísticos

O artigo aborda a questão da cooperação territorial como um principio e requisito necessário para um melhor desenvolvimento local e regional. Sustenta-se o argumento de que tão importante quanto o desenho de políticas com o objetivo de desenvolvimento territorial sustentável (o quê) é a maneira pela qual estas são decididas, projetadas e, acima de tudo, aplicadas (o como). O texto é dividido em três grandes blocos. A primeira trata da cooperação como uma categoria transversal que se aplica a partir de três abordagens: governo e administração do Estado, teorias do desenvolvimento econômico regional e local, e do ponto de vista do planejamento e da coesão territorial; e em diferentes escalas, portanto, de natureza multinível e cobertura geográfica diversificada (internacional, europeua, espanhola e valenciana). Nas duas seções seguintes, são exemplos de experiências de cooperação e resultados obtidos (em diferentes escalas e entre diferentes atores e instituições.) como uma ferramenta para o desenvolvimento territorial em áreas rurais, primeiro, e turísticas, depois. O texto termina com uma breve síntese final.

Growth-based Theories for Declining Regions? A Note on Conceptualisations of Demographic Change for Regional Economic Development

This article aims to critically assess the economic growth paradigm, which typically underlies most approaches to regional policymaking for demographic change. While population losses, ageing and outmigration – i.e. phenomena that are addressed as demographic change – have become a matter of urgency for many European regions, most regional economic development theories remain silent about the population decline affecting the economic growth and development prospects of regions. Consequently, regional policies usually rely on the concept of economic growth, yet neglect the complexity and importance of demographic change and how it relates to the economic sphere. Due to this lack in nuance, we argue that regional policymaking fails to design adequate policy support for regions facing persistent demographic change and economic stagnation or decline as a result. Based on these observations, the paper examines a selection of regional economic development theories in search for alternative concepts of growth and development in the context of demographic change. To this aim, globalisation peripheries are introduced as a fruitful conceptual point of reference and, in combination with endogenous regional development theories, discussed as an alternative approach for regional policymaking.

CONCEPTUAL AND THEORETICAL BASIS OF REGIONAL INNOVATION POLICY

The evolutionary changes of the paradigms of the economic development of the region are investigated in the context of theories: neo-classical and theory of regional economic development, Keynesian theory, theory of monetarism, theory of economic rationalism, theories of comparative, competitive and common advantages, theories of globalization, sustainable development, selfdevelopment and endogenous development, new theory of growth. The role of innovations in the analyzed paradigmatic shifts, as well as the essence of regional innovation policy are determined. The analysis of the evolution of the paradigms of regional economic development revealed the following qualitative changes: the expansion of the production function with such variables as technology, training, entrepreneurship; Attribution to the factors of regional development, along with economic factors, as well as social, cultural and institutional factors; The characteristic of the development of the economy by its ability to generate innovation; Transformation of technologies, science and innovations into development catalysts in a new era of industry; Inclusion of social and environmental components into the strategic planning of economic development, the emergence of an integrated strategic planning of regional development; Moving the focus of regional strategic planning towards competitive advantages based on less intrusive factors such as efficiency, productivity, quality indicators; Transformation of comparative and competitive advantages towards common advantages that stimulate enterprises and regions to collaborate and innovate; Giving the state the role of companion and entrepreneur in regional economic development; The development of local innovative ecosystems on the basis of endogenous factors and with the preservation of its global orientation (the process of glocalization); Defining a human-oriented strategy of state development as the basis of an innovative society, which respects human rights and freedoms, and decent living conditions for people are the goal of development.

THE CONCEPT OF THE POLARIZED SPACE FORMATION IN THE ECONOMY OF THE REGION WITH RESOURCE POTENTIAL

The article analysed and systematized the theory and the paradigm of regional development. Opportunities for the optimum development of the regional economy in Ukraine are identified because the functioning of the market system is accompanied by crisis phenomena and requires deep scientific study of the contemporary economic theory and practice of going out of the crisis using the latest concepts of region development. Polarized space concept in the economy of the regions of Ukraine with the identifying of measures for its implementation is an important and insufficiently developed scientific research. The result of the transformation of economic transitions in the national economy is the dominance of so-called “point development”. Despite the positive effect of the presence of the growth poles in a separate area, this situation reinforces the asymmetry in economic development in comparison with the other regions. A result of this is the differentiation of the main economic and social indicators of regional economic development. In this regard, the study of regional concepts and theories of regional economic development is urgent theoretical and practical task, because the lack of a unified approach to the foundations of the theory of economic space, and especially its regional component, does not allow to start solving some of the practical issues of systematic formation of common economic space of the country. These issues raise many questions of applied character, which economic theory may not always give a definite answer. Such questions are certainly of theoretical interest but, most importantly, their answers can contribute to the formation of an effective competitive economy in the region. The object of the study is the regions of Ukraine, with their resource potential and absence of a polarized space. The main objective is the formation on this basis of anti-crisis measures of region development. The subject of research is theoretical principles and methodology of formation of a polarized space with the low quality of economic space. The methodological base of this research is the dialectical method of cognition, systemic approach, fundamental provisions of economic theory and the theory of the polarized space. The following research methods are applied: logical generalization, systemic and structural analysis, comparison, statistical, expert, etc. The aim is to study the imperatives for the effective development of the locally-spatial system, taking into account its resource potential, determination of possible ways of its implementation with the aim of regional economic space development and ensuring strategic guidelines and goals for socio-economic development. The obtained results gave a possibility to determine necessary methodological bases of the improvement of regional development, to focus on the most influential directions in the theory of the economic development of a region, to substantiate the conceptualization of an optimal model of economic development of the region.

Innovation capacity in the healthcare sector and historical anchors: examples from the UK, Switzerland and the US

Innovation is an integral part of economic development in developed economies. In the post 2008 period, a key policy agenda is that of sustainable development, which calls for innovation in all aspects of value-chains. In this paper, we focus on innovation from the biotech—pharma perspective to see whether or not this will lead to a sustainable future for the regions where there are clusters of firms in this sector. We examine data from a recently completed European Union study of innovation in the Healthcare sector from the UK and Switzerland, countries with an historical base in pharma, to understand how innovation pathways vary at the regional level in the broader life sciences, which incorporate biotech and more. Innovation in the healthcare sector in two regions, Oxfordshire in the UK and Zurich in Switzerland are compared. We contextualize our discussion by drawing on studies that focus on the sector in the US, specifically Boston. The analytical framework comprises three elements: innovation systems and national and regional economic development theories are the first two, followed by approaches which consider organizational or institutional activity. This framework is used to help explain and understand the complexity of how innovation is organized at the sub-national level. The overall context is that it is increasing becoming a condition for government financing of research that it has more immediate application in industry or have the possibility of commercialisation (e.g., translational research).

A Positive and Comparative Study on Industrial Structure Transformation Capacity of Provincial Level Divisions in China

Most urban planning policies are affected by the industrial structure. This paper gave a positive and comparative analysis on the industrial structure transformation ability and transformation direction of the thirty-one provincial level divisions in China by using principal component analysis, based on theories of regional economic development and industrial economics. The results show that Beijing, Shanghai, Guangdong, Jiangsu, Zhejiang and Shandong have strong industrial structure transformation ability and the industrial transformation direction is in the tertiary industry except for Guangdong, Jiangsu and Shandong. The industrial structure transformation ability over the thirty-one regions exhibits a decreasing trend from the eastern coastal area to the west inland. The sequence of industry structure transformation direction is from the first industry to the second and then to the tertiary for China.

Modelling Local and Regional Economic Development in Turkey: A “Curate's Egg”

AbstractThis paper explores and unpacks the nature of the processes shaping regional economic growth in Turkey using an econometric modelling strategy. Existing empirical research in this field has focussed on regions in economically advanced and technologically innovative economies. As a consequence, the broader picture of the dynamics of regional development in less developed countries, particularly its social and political origins and the overall changes in regional inequality, has remained elusive and less clear. In this study, a set of econometric models is developed to explore the validity of a range of theoretical propositions in explaining the trajectories of regional economic change in Turkey between 2004 and 2008. Growth is calibrated in terms of employment and changing rates of unemployment in the chosen time period in the 81 provinces of Turkey. The results of the study explain that implications of the current local and regional economic development theories are a “Curate's Egg”—good in parts—because these theories are only partially relevant in the Turkish context.

Study on Economic Development Model and Approach of Beijing's Mountainous Valley Areas

The economic development model of Mountainous Valley areas was put forward by Beijing government in order to fit in with the needs of ecosystems conserve and socio-economic development in mountain areas. It had achieved remarkable results in practice. The basic content and the problems faced by the model were both described in this paper. Based on theory of regional economic development, the paper proposed the development thought of “multi-point and one line” and “A line with multi-center” space layout and relative safeguard measures of valley areas. This research can provide reference for relevant departments to formulate economic development policies.

The co-evolution of the University of Central Florida's technology incubator and the entrepreneurial infrastructure in Central Florida

This paper provides a real world example of regional economic development theories in practice. Interdependencies between a major research university, a science/research park, an incubator, and a metropolitan area are presented to illustrate the effects on economic development, entrepreneurship, and innovation in the region. Narrating a trajectory of events of the past 50 years of developments in and around the University of Central Florida (UCF) campus, the case highlights the central role played by the university’s incubation program in catalysing the emergence of an extensive innovation infrastructure and enabling an entrepreneurial culture in Central Florida. Synthesising theory with practice, various challenges are discussed and lessons provided for policy makers, researchers and practitioners.

An Integrated Model of Subnational Regional and Urban Economic Development: Framework of Analysis

AbstractThe mechanism of subnational regional and urban economic development has been studied extensively by economists, geographers, town planners and other academics. The existing widely varying theories of regional economic development are insufficient on their own in explaining how a region can develop and prosper. Each theory has evaluated a few facets of regional economic development. Research from these different perspectives is narrow and prevents any cross‐fertilization of research from these diverse theories. Recognition of multiple factors affecting the development process has led the author to create an integrated model of regional and urban economic development. The essay first sets out to describe and explain this integrated model. Each of the components of this new model draws heavily upon seminal work in the field. This model proposes three rings. Each ring is at a different level of abstraction. The determinants of development described in each ring can influence each and every other determinant of development shown in the three‐ring structure. This model recognizes that development in any centre, be it regional or urban, nascent or established, is a composite end result of the complex interplay of all the determinants. The essay then goes on to show how this model can provide a broad holistic approach to regional economic development that can assist researchers in their attempts to understand and link its various theories.Résumé Économistes, géographes, urbanistes et autres spécialistes ont largement étudié le mécanisme de développement économique urbain et régional infranational. Les très nombreuses théories existantes sur le développement économique régional sont insuffisantes à elles seules pour expliquer comment une région peut se développer et prospérer. Chaque théorie a évalué quelques facettes de cette évolution. Les études résultant de ces différentes perspectives ont un champ étroit et empêchent tout enrichissement mutuel des recherches émanant de ces diverses théories. Prenant en compte les facteurs multiples qui affectent le processus de développement, l'auteur a pu créer un modèle intégréde développement économique urbain et régional. Le texte commence par décrire et expliciter ce modèle intégré. Chacune de ses composantes repose en grande partie sur les travaux majeurs dans le domaine. Le modèle propose trois cercles. Chaque cercle se situe à un niveau d'abstraction différent. Les déterminants du développement présentés dans chaque cercle peuvent influencer tout ou partie des autres déterminants du développement appartenant à la structure d'ensemble. Le modèle admet que le développement dans un centre quelconque, qu'il soit régional ou urbain, naissant ou établi, est un aboutissement composite des interactions complexes de tous les déterminants du développement. Est ensuite montré comment ce modèle peut apporter une approche holistique élargie du développement économique régional, capable d'aider les chercheurs à comprendre et relier les diverses théories sur cette évolution.

Social Diversity and Economic Development in the Metropolis

Theories of regional economic development are increasingly focused on understanding the reasons for metropolitan economic growth. The “creative capital” perspective argues that such growth is extremely dependent on the presence of four main conditions: technology, talent, tolerance, and good quality of place. This article examines evidence for the importance of tolerance in promoting metropolitan economic development. Through his analysis, Richard Florida studied the association of economic growth with the presence of gays and lesbians, bohemians, immigrants, and racial minorities. Literature confirms that diversity is an important component of economic development, although this does not appear to be fully explained by Florida’s creative-cities model.

A DOOYEWEERD‐BASED APPROACH TO REGIONAL ECONOMIC DEVELOPMENT

ABSTRACTWithin regional science there is a need for a general theory of regional economic development, one that evaluates and integrates existing approaches. In this paper, the philosophy of Herman Dooyeweerd is used as a basis for conceptualising the contours of such a theory. Contributions of this philosophy especially relevant for regional economic development are functional pluralism and non‐reductionism, interweaving among entities, a broad understanding of the human person and built‐in normativity. While all the aspects are significant in regional economic development, the spatial aspect is singled out for particular attention. Dooyeweerd's philosophy is able to incorporate existing approaches to regional economic development though not without criticising and revising them.

A labor market based theory of regional economic development

The Borts and Stein (1964) theory of regional economic growth and development has been widely accepted and discussed in regional economic development literature. Given their assumption that labor demand conditions are invariant between regions and that the labor demand is highly wage elastic, they conclude that regional growth is primarily supply driven and differences in growth among regions arise due to differences in the growth of labor supply assuming that wage elasticity of labor supply is the same across regions. Muth (1968, 1971) claims to have verified the Borts and Steins (BS) conclusion. We propose a regional labor market based model of economic development similar to BS with certain modifications in assumptions and show that the Borts-Stein-Muth (BSM) conclusion is based upon a narrow view of labor demand and supply elasticities. Our theory demonstrates that regional development is mainly labor demand driven once we adopt a broader view of elasticities. The broader view incorporates the direct effect of wages on labor supply and labor demand as well as the indirect effects of wages through changes in inmigration and firms' formations in a region.

Culture and region revisited

People in different regions of the world live under different cultural and religious orders and derive various practical ethics from them. Some of these moral and religious principles are clearly more favorable for economic development than others. Yet such ethnological differences are regrettably absent from our prevailing theories of regional economic development. In this paper, culture is defined as a system of relatively slow processes of change — known as cultural arenas. A complex interface exists between these slower processes and the relatively faster ones (known as games). In attempting to assess the development prospects of any region, a key point to grasp is that this cultural interface may be self-organizing. Its future trajectory will therefore be uncertain. To the extent that the proposed system of slow processes may be construed as a region's cultural base, they may control the nature and achievable pace of that region's development.

CULTURE AND REGION REVISITED

ABSTRACT People in different regions of the world live under different cultural and religious orders and derive various practical ethics from them. Some of these moral and religious principles are dearly more favorable for economic development than others. Yet such ethnological differences are regrettably absent from our prevailing theories of regional economic development. In this paper, culture is defined as a system of relatively slow processes of change – known as cultural arenas. A complex interface exists between these slower processes and the relatively faster ones (known as games), in attempting to assess the development prospects of any region, a key point to grasp is that this cultural interface may be self‐organizing. Its future trajectory will therefore be uncertain. To the extent that the proposed system of slow processes may be construed as a region's cultural base, they may control the nature and achievable pace of that region's development.