Local Economic Development Strategies Research Articles

Local economic development strategies in a medium-sized city on the European periphery: a path to become an economic center of Eastern Central Europe importance

Large cities are becoming increasingly valuable in the spatial structure of globalized economies. Although these centers vary significantly regarding population, economic structure, and income conditions, they—compared to their surroundings—generally show a higher productivity level, a higher rate of employment, higher education, and higher innovation performance. However, this metropolization and concentration of the economy in large cities made the development of cities regarded as medium-sized on an international scale an issue of competitiveness in Europe, characterized by dense town networks, a small number of metropolises, and a significant weight of medium- and small-sized towns. However, one of the main preconditions for achieving success in this competition is to form a comprehensive and complex concept with a significant emphasis on economic development. Therefore, the aim of our study is to analyze the local economic development strategies for the last three decades, as elaborated in Debrecen. In the framework of our empirical analysis, we examined how different mainstream concepts appear in local development strategies and which development objectives are determined by the local strategies. Furthermore, we also aimed to identify possible changes in ideas about city roles by referring to the organization of economic space.

Evaluating the effectiveness of local economic development strategies within UMhlathuze Local Municipality

Local Economic Development strategies were formulated in response to the stipulations made by the national government of South Africa. The national mandate placed the responsibility on the local sphere of government to promote economic progression from a grassroots level and to contribute to developmental activities within the state. The National Framework LED has been created as a basis for the effective practice of LED in terms of implementation. This paper focused mainly on evaluating the effectiveness of Local Economic Development strategies in uMhlathuze Local Municipality within Empangeni town. This paper and its problem were developed by the researcher due to the growing unemployment rate in South Africa which mostly affects young people, more especially at the municipal level. The researcher was convinced to evaluate how the economic development strategies or initiatives addressing the issue of unemployment and assisting economic development within the uMhlathuze Local Municipality, intending to come up with mechanisms that may be put at hand to ensure the effectiveness of these strategies provided to address economic issues with the municipality. This paper employed qualitative methods to collect and analyze data. Qualitative data were collected from community members and staff of the municipality within the Department of Economic Development through the use of questionnaires. The analysis of qualitative data was done through thematic analysis. The findings of the research revealed that there is a communication breakdown between the community and the municipality to enable the community to use the opportunities for economic development. This paper recommends that the municipality needs to develop/advance communication methods to ensure that the community is informed and aware of the development opportunities that are provided by the community.

Rural tourism in South Africa: A local economic development strategy

This study aims to assess the potential of rural tourism as a strategy for local economic development in three rural villages in the Thulamela Local Municipality, which falls under the Vhembe District Municipality in the Limpopo province of South Africa. Rural tourism is considered a promising industry for rural development and a popular approach to local economic growth. Sustainable rural tourism is recognised as a crucial component of rural development and is particularly important in developing nations, such as South Africa, where substantial rural populations and limited economic activity exist. The study utilised a qualitative research approach, drawing on an exploratory design and interpretive paradigm. A purposive sampling technique was adopted to select participants. Focus group discussions were conducted with the participants, and content analysis was used to analyse the collected data. The study indicates that rural tourism could effectively promote local economic growth in the three rural villages by providing residents with employment opportunities, thereby reducing poverty rates in rural areas. However, challenges remain, including the lack of funding to support small tourism businesses and the need for human capital development in local communities. The study recommends a gradual approach to knowledge and skills development within local communities to support the business aspects of rural tourism development, as well as the provision of funding assistance.

ANALISIS STRATEGI PENGEMBANGAN EKONOMI LOKAL MASYARAKAT PESISIR DI DESA LABUHAN BAJO

This research aims to analyze strategies for optimizing local economic development (PEL) in Labuhan Bajo village, Utan sub-district, Sumbawa district. The research sample was 30 respondents related to local economic development strategies. The data used in this research uses primary data and secondary data, where data is taken by observasing and distributing questionnaires directly with respondents or the best experts and obtaining a clear understanding from existing literature. The analysis technique uses the process hierarchy analysis (AHP) method with the help of the expert choice application. The results of this research show that the priority strategies for optimizing local economic development in Labuhan Bajo village include : 1) Human Resources, 2) The role of government and society, 3) Regional marketing, 4) Capital, 5) Natural resources, 6) Techology. 
 Keywords: Development; Local economy; coastal; strategy

Application of Social Capital-Based Institutional Model in Formulating Village-Owned Enterprise Policy as a Resilience Strategy for Local Economic Development

This study aims to determine the application of social capital-based institutional models in formulating policies for village-owned enterprises as a resilience strategy for local economic development. This research uses a qualitative approach. Data collection is carried out through observation techniques, interviews, documentation Data reduction steps, data presentation, and conclusion/verification process the collected data. In view of the aftereffects of the examination, it was found that the investigation of the social capital-based institutional model, shows that parts of trust, informal organizations, and normal practices play a significant part in the utilization of this model in the detailing of arrangements for Town Claimed Ventures. These factors have’a major influence on the success of the village’s local economic development resilience strategy. Then the results of the analysis showed that the application of the social capital institutional model in Barae Village, Soppeng Regency, had succeeded in increasing the economic resilience of the community. This is realized through better access to the capital needed, as well as the ability of the community to meet their daily needs at affordable prices. The impact is an improvement in the quality of life and economic resilience in the village.

Come Together, But How? Zooming Into Economic Development Collaboration Between State and Local Governments, and Nongovernmental Organizations

Economic development at the local level presents an intrinsic tension produced by competitive and cooperative dynamics. While empirical studies have identified drivers for collaboration at the local level, less is known about the scope of activities promoted by state-level agencies and the institutional mechanisms that state and local actors create to cooperate. This study exploits a unique data set created by the State of Iowa reporting the economic development agreements from 2007 to 2018. The findings illustrate how workforce development activities are the most prevalent activity while fiscal incentives are the least recurrent practice. In terms of institutional mechanisms, service contracts are used most frequently. Additionally, a state agency and nonprofit organization dyad is the most common collaboration, which highlights the role of state governments in shaping local economic development strategies. This exploration of mechanisms, activities, motivations, and duration contributes by improving theories of formal collaboration and intersectoral governance.

Rural Tourism: A Local Economic Development Strategy

Tourism is a popular economic development strategy and rural tourism is seen to be a promising industry for rural development. Local economic development (LED) is defined as a process in which local governments, the private sector, and community-based organizations form partnerships to manage existing resources to create jobs and stimulate local economies. Tourism is widely recognized as a tool for boosting local economies. Rural tourism destinations contribute to community empowerment as well as long-term local economic development, and sustainable rural tourism is seen as a critical component of rural development. This is especially true in rural areas, where the introduction of new sectors has not been sufficient to compensate for the decline in economic prospects for rural residents. Tourism is one of the most popular non-traditional rural development techniques, and it supports enterprises such as recreation, arts, and crafts. Tourism entrepreneurs, particularly local hosts, play an important role in this process since, in addition to their own individual contributions, they create jobs, stimulate other sectors of the local economy, and enhance the appeal of their destination. The development of rural tourism destinations is guided by the potential of villages as a tourism product attribute. The community is not an afterthought; it is an essential component of the destination's tourism offering. This means that the community benefits from and bears the costs of tourism in their area. Tourism products and specific local wisdom are inextricably linked to the community. The research was carried out in Nqileni, a rural tourism-dependent village in the Xhora Administrative Area of South Africa's Eastern Cape Province. To gather the necessary empirical data, the study adopted a qualitative research methodology and used a non-probability purposive sampling technique with a semi-structured interview schedule to solicit the gathering of data. The data was analysed using the NVivo version 11. The findings of the study suggest that tourism is a good strategy to achieve local economic development in rural areas specifically. The results of the study further confirm that tourism has the potential to create employment opportunities for local community members and this results in the reduction of poverty levels in rural areas. Keywords: rural tourism, local economic development, community empowerment, sustainable rural tourism, and tourism destinations.

Economic challenges limiting small-scale commercial farming development in rural areas of South Africa

Small-scale commercial farming has been recognised as a congruent strategy for local economic development. However, there are entrepreneurial challenges that are aggravated by the state of the economy, natural factors and weak agrarian edification system limiting growth in this sector. The fact that small-scale commercial farming is prioritized in the development agendas of the majority of African nations reflects how important it is in promoting food security and job creation. A number of agronomic limitations, including a limited farming entrepreneurship skill, severe climate change, drought, limited access to cash, and water shortages, have been recognized as major obstacles to the growth of small-scale commercial farming. As a result, the study presents the obstacles to entrepreneurship and small-scale commercial farmers in South Africa's rural areas. Two hundred and seventeen small-scale commercial farmers were chosen using a multi-stage sample technique. Quantitative data were collected through a survey in which structured questionnaires were used. Statistical Package for Social Sciences, version 26 and Microsoft Excel version 2016 software were used as data analysis tools. Friedman means ranking technique was used to categorize the challenges in ascending order. Pearson chi-square was used to determine the relationship between the variables. The computed results revealed that financial, water, access to the market, crops and animal diseases were the most prevalent challenges. Subsequently, these farmers have poor financial management, marketing, packaging, cross-breeding and human management skills and this is exacerbating the challenges faced. Based on the results of this investigation, the paper recommends that the establishment of training programmes to improve entrepreneurship skills should be offered to these farmers, depending on the type of farming. Agricultural policies should be based on current evidence and should also be based on regular assessments. This improves the readjustment of relevant policies for the development of small-scale commercial farming. The study recommends that building of strong government intervention, farming stakeholder participation in policy formulation and adequate support for small-scale commercial farmers’ schemes in rural areas should be prioritised. Key words: Challenges, Small-scale commercial farming, economic challenges, entrepreneurial constraints, rural areas

The Great Power Politic-Capital-Social Information Synergy towards Successful Local Economic Development

The development concept with Local Economic Development (LED) approach applied by developing countries is considered as a new resolution to reduce poverty, unemployment, and economic gaps while improving the quality of life amid globalization and world hegemony. LED is a socio-economic field of study with a relatively new policy formulation that the planning and implementation process is still developing with various alternative theories and approaches. Hence, this paper provides a conceptual and analytical framework for understanding the great power of 4.0 (Politic-Capital-Social-Information) in LEDs synergy in an applicable and comprehensive manner. This paper analyzes the theory and approach of LED with a focus on conceptualizing the synergy of the great power of 4.0 (Politic-Capital-Social-Information) coming from the governments, communities, businesses, and media that affect LED implementation success in the context of developing countries. LED conceptualization is essential in facilitating researchers, practitioners, and policymakers to elaborate political power, capital power, social power, and information influence in implementing LED programs in developing countries. Unlocking the potential of LEDs by synergizing the power of 4.0 (Politic-Capital-Social-Information) is expected to reduce socio-economic gaps and realize equal development for all people, given the condition that the LED strategy has been formulated and implemented effectively.

Rethinking Local Economic Development for Fetal Alcohol Spectrum Disorder in Renosterberg Local Municipality, South Africa

Two towns in Renosterberg Local Municipality (RLM) in the Northern Cape Province of South Africa, Petrusville and Philipstown, have high Fetal Alcohol Spectrum Disorder (FASD) prevalence rates. FASD is linked to poverty and imposes high national economic costs. Thus, it is critical to understand the local economic development (LED) strategies used to mitigate the high prevalence of FASD. Moreover, there is sparse literature examining adult communities where FASD children reside. Understanding these adult communities is important because FASD cannot exist without adult gestational exposure to alcohol consumption. Using a mixed-method approach, this study uses a six-phase analytic approach to investigate the drinking culture and drinking motives in RLM, applied to two cross-sectional in-depth community needs assessments, five in-depth interviews, and three focus groups. This study also evaluates how the RLM targets FASD, as well as binge and risky drinking, in its municipal economic strategy by analysing its Integrated Development Plan (IDP) with respect to an eight-stage policy development process. The results indicate that 57% of respondents expressed concern regarding the unhealthy drinking culture in RLM, 40% felt that the residents of RLM drank in response to unemployment-related hopelessness, and 52% attributed the drinking culture to a lack of hobbies and recreational opportunities. The results of an analysis of the RLM IDP through the lens of Ryder's eight-stage policy development process suggest that the decisive policy development process is not open to the public and that, furthermore, FASD is neglected. A dedicated alcohol consumption census-style study is recommended to broadly capture alcohol consumption in RLM, allowing researchers to identify the exact alcohol consumption patterns and priority areas for the IDP and public health policy. RLM should directly publicise its policy development process so that its IDP is inclusively formulated to address FASD, risky drinking, binge drinking, and gestational alcohol consumption.

Stimulating and developing sustainable urban local economies: The role of urban agriculture

ABSTRACT Whereas urban agriculture is a potential tool for urban local economic development (LED), there appears to be little empirical evidence that has examined how urban agriculture affects the urban local economy from a LED perspective. This research aims to examine the role of urban agriculture in the urban local economy in a developing country, Ghana. Data for the research was obtained through focus group discussions and key informant interviews with urban agriculturalists and urban local authorities in two assemblies respectively in the Greater Accra region of Ghana. The findings showed that if properly supported, urban agriculture can improve the local economy because of its multiple benefits of employment, income, and improved livelihood and food security. This study contributed to expanding the international scholarship on LED from the perspective of using urban agriculture as an LED strategy by examining the case in Ghana.

Does Technopark Play a Role in Local Economic Development? Case Study in Samosir Regency

Local economic development is one of the development policies that is considered appropriate and strategic in the context of regional development in Indonesia by optimally utilizing local resources. In line with this concept, the Government of Samosir Regency established a technopark as a centre for innovation based on inland fishery resources to encourage local economic activities for the community. The purpose of this study is to examine the strategy of the local government of Samosir Regency in developing the local economy through technopark based on inland fishery resources. The analytical tool used by the Analytical Network Process (ANP) includes analysis of aspects of factors, problems, solutions, and alternative strategies. Based on the results of the ANP analysis, the collaboration factor is the most influencing factor in strategy development. Meanwhile, in the problem aspect, the problem of limited infrastructure, low public interest and weak commitment, are the main problems that need to be resolved, so that the solution aspect becomes a priority is building trust between stakeholders, allocation of financing for infrastructure and socialization of coaching programs to the community. The formulation of the main strategy for local economic development through the development of technoparks based on the results of the ANP analysis is to build multi-stakeholder synergy to support local economic development in Samosir Regency.

The de-globalisation of capital? The political economy of community wealth building

ABSTRACT Community wealth building (CWB) is a strategy for local economic development that aims to (re-)circulate wealth within the places that produce it – a kind of de-globalisation of capital. CWB has come to prominence in the UK due to its implementation in Preston and endorsements from the Corbyn-led Labour Party. However, CWB has come under criticism for promoting protectionism. As a way into the political economy of CWB, this article analyses this criticism. We do so by bringing the policy debate in the UK into dialogue with political economy literature on protectionism and nationalism. We show that protectionism is as much a political weapon or slur used to discredit interventionist development strategies as it is an analytical concept at home in technical economic discourse. On this basis, we argue that CWB is not protectionist neither in its policy proposal nor in its wider worldview. However, CWB does limit itself to the local without a clear redistributive mechanism between municipalities and so risks siloing local areas from one another.

Strategi Pengembangan Ekonomi Lokal Desa Wisata Kampung Patin Kabupaten Kampar (Menurut Ekonomi Syariah)

Local Economic Development which has the potential to become a tourist village in District XIII Koto Kampar is Koto Mesjid Village and this is a process where local governments and community organizations are involved to encourage business activities to create jobs. The aim of the research is to know. the strategy. development. local economy and the impact of the Kampung Patin Tourism Village according to Islamic economics. This research includes descriptive explanatory research, and descriptive qualitative methods. The results of the research, the local economic development strategy through the tourist village of Kampung Patin, namely: a. Carry out counseling, training and community development in the field of tourism and culture. b. Increase community participation by optimizing community partnerships in the development and management of tourism objects. c. Increase promotion in the field of culture and tourism. d. Increasing partnerships between the Government and the community, including the business world or BUMD in an effort to develop facilities and infrastructure for superior tourist objects. The impact of the local economic development strategy through the Kampung Patin tourism village shows a positive impact, for the economic, socio-cultural and environmental development of the Village itself, government revenues through tourist retribution.

Impact of the US–China trade war on resource allocation: Evidence from China's land supply

This study investigates the impact of the current United States (US)–China trade war on resource allocation, using monthly panel data at the city level; the data relate to the transfer of local government-controlled land from 2017 to 2019. The results show that the trade war significantly changed local governments' economic development strategies. As the trade war progressed, Chinese local governments shifted their attention to boosting the development of high-tech industries by significantly increasing the proportion of land supply for these industries. After the trade war, for every 1% increase in the US exports as a share of gross domestic product (GDP), land supply to high-tech industries increased by 0.25%. This effect is more prevalent in cities with more fiscal resources, a younger secretary of the Communist Party of China (CPC) Municipal Committee, lower levels of public nationalism, and a larger share of foreign enterprises among exporters. These results are consistent with our assumption that the pressure generated by the US–China trade war has significantly increased the potential returns for local governments in terms of developing high-tech industries.

Village Tourism-Based Local Economic Development: An Approach to the Raled Model

Selorejo Village, Malang Regency has tourism potential which is known as the Bumi Perkemahan Bedengan Tourism. However, Bumi Perkemahan Bedengan Tourism still needs to be developed optimally because this tourism has the potential to become sustainable tourism. The novelty of this research is to complement quantitative research methodologies related to the theme of developing village tourism potential, where there are research limitations from several previous studies, which are dominated by descriptive qualitative methods. The concept of Local Economic Development (LED) is deemed capable of optimizing available local resources by involving several stakeholders such as the Government, Local Communities, Business Actors, and Local Community Organizations. This research discusses tourism-based Local Economic Development (LED) that aims to examine the condition of Local Economic Development (LED) and provide insight in making plans or strategies for sustainable Local Economic Development (LED) in Bumi Perkemahan Bedengan Tourism. This article applies a quantitative approach with data analysis of RALED (Rapid Assessment Technique for Local Economic Development). Assessment of local economic development in Bumi Perkemahan Bedengan Tourism using the hexagonal concept of LED which consists of six aspects, namely target group, location factors, policy focus and synergy, sustainable development, governance, and management process. The results showed that the five aspects had met the good category. However, there is one aspect, namely the Target Group has a low index value of 45.92 which means that the condition of Local Economic Development in the aspect of the Target Group at the Bumi Perkemahan Bedengan is in a bad condition. Therefore, the target group aspect and the other two lowest aspects namely management process and location factors need attention for more improved in the efforts of Local Economic Development (LED) in the Bumi Perkemahan Bedengan Tourism.

COMMUNITY PERCEPTIONS OF LOCAL ECONOMIC DEVELOPMENT THROUGH TOURISM IN PORT ST JOHNS – SOUTH AFRICA

The purpose of this study was to investigate community perceptions of opportunities for local economic development (LED) in the town of Port St Johns (PSJ), using tourism as a conduit. PSJ is situated at the mouth of the Umzimvubu River along the Wild Coast region in the Eastern Cape of South Africa. A sample of 307 residents of PSJ responded to a questionnaire on the effects of tourism in their community. Overall, the findings reveal a tourism policy gap regarding the LED strategy and implementing a tourism development plan for PSJ. Therefore, the recommendation is to initiate a stakeholder consultative process, culminating in developing a strategic tourism plan for PSJ. This study contributes to the literature on including tourism in the general development plan of communities such as PSJ. At the same time, it provides strategic direction on how community livelihoods can be improved using the natural and cultural resources in PSJ.

Local Economic Development Strategy through Scenario Planning Approach (Study on the Development of Rural Agro-tourism Areas in Banyuwangi)

Local Economic Development (LED) is an appropriate development concept due to the related local or territorial circumstances like considering locality capacity, internal and external factors, and local economic growth so that it has been implemented in many countries. Then the existence of village autonomy and rural area development in Indonesia is such a form of LED implementation. Generally, LED implementation through rural area development has not been successful enough, but in some districts, it has not provided a big impact to improve the people's prosperity. To succeed the LED implementation in developing rural areas, it requires strategies to tackle some problems and challenges and provides a vivid goal in the long term so that the development conducted can synergize each other. Scenario planning is one of the relevant approaches in this case since it accommodates the high complexity and uncertainty. Also, it is used in long-term planning formulation. Moreover, this scenario planning used the TAID method that is tracking, analyzing, imaging, and deciding. Data in this research are compiled by interview, secondary data, and observation to meet the tracking step. Then the output of this will be analyzed using cross-impact to create a scenario in the analyzing step, and the output will be an input for formulating visions and strategies in the imaging and deciding step. This article provides four alternative strategies for developing rural areas which are Dissemination, Optimization, Affirmation, and Reformation.

Lokalno poslovno okruženje iz perspektive poslovne zajednice / Business Community Perspective on Local Business Environment

At the beginning of this century, local governments, local self-government units, were reaffirmed as an important participant in development policy. The growing importance of the local business environment for local economic development, but also development at all other levels, has been recognized. The local business environment can be explored from different perspectives. In this paper, the topic is the local business environment from the perspective of the business community, because there is a lack of research and works of the local business environment from this perspective in Bosnia and Herzegovina. In this context, the focus is on three dimensions of the business environment. The first dimension includes procedures, activities and services provided by local governments that have or may have an impact on the business community. The second dimension refers to land use, spatial planning, spatial, urban, regulatory and implementation plans and other relevant documents, as well as the process of issuing a building permit. Finally, the third dimension includes the prices and quality of utilities and local infrastructure. All three dimensions have their basis in the rights and responsibilities of local self-government units determined by the statutes of the local self-government unit, constitutions of higher levels of government, relevant European documents, laws, regulations, provisions, practices at relevant levels and theories. In this context, three research questions were asked. The answers to the questions asked are generated by elements to solve the observed problem. The paper uses the survey method as the basic method. 400 companies from Bosnia and Herzegovina were surveyed. In addition, other relevant methods were used. Theoretical foundations of the research are provided by location theories and growth and development theories.The results can be used as inputs in evaluating existing policies and strategies of local governments or creating new local economic development strategies for the third decade of this century.

Local economic development strategies to increase economic growth in agrotourism areas

This study aims to find a local economic development strategy based on agroindustry to increase Java’s agrotourism sustainable and robust local economy. The research methods used are descriptive quantitative and qualitative. Research respondents are the community, academic practitioners and government officials. The data used covers both external and internal factors that affect the local economy in an agrotourism area and which are then analyzed using SWOT. The results show that the main strength of agrotourism in the IFE matrix is its highly strategic geographical location. The weakness is the lack of planning and business development activity which could have potential economic value. In the EFE matrix, opportunities are the prospects for agrotourism development while the main threat is the community's low interest in business development. In the IE matrix, agrotourism development is found in cell V. This can be handled by maintaining strategies such as market penetration, and market and product development. The study concludes that the local economic development of the community in the agrotourism area can be implemented if the community, practitioners and government are integrated to support the strategy.