Theory Of Economic Development Research Articles

Research on the Relationship between Education Service Equalization and Regional Economic Development

This study delves into the correlation between education service equalization and regional economic development by examining the theories of public goods, educational equity, and regional economic development. It uncovers the theoretical foundations and the current practice in China. The research indicates that the equalization of education services significantly impacts regional economic development, with these effects showing regional variability. Through both theoretical and empirical analyses, the equalization of education services has proven pivotal in enhancing labor quality, accelerating talent mobility, strengthening regional innovation capability, and optimizing economic structures. While China has achieved certain accomplishments in advancing the equalization of education services, the issue of uneven distribution of educational resources among regions remains prominent. In light of this, governments should formulate differentiated education policies based on regional characteristics and strengthen inter-regional educational cooperation and exchanges, aiming to promote coordinated regional economic development through balanced educational advancement.

For and by the People? Internal Versus External Slum Tourism Entrepreneurs’ Impacts

The controversial impacts of slum tourism have sparked debate and raised questions about its benefits for impoverished communities. The potential positive effects of slum tourism often hinge on “last mile” strategies and the crucial role of local entrepreneurs who manage the visits and interactions in determining the benefits to these areas. Drawing on a blend of Social Entrepreneurship Theory and Economic Development Theory, we explore and compare the contributions of both internal and external slum tourism entrepreneurs. Our findings reveal striking differences in their strategies and orientations. For example, internal entrepreneurs are deeply rooted in the focal slum and prioritize long-term poverty alleviation through the creation of permanent jobs and innovative approaches, whereas external entrepreneurs tend to focus on profit maximization and diversification of their offer outside the slums. However, both internal and external entrepreneurs actively challenge stereotypes, catalyze skills’ development, and channel resources back into the slum communities. This research sheds light on the multifaceted impacts of slum tourism entrepreneurship, providing critical insights for future endeavors in community development and slum tourism studies.

Pharma innovation: how evolutionary economics is shaping the future of pharma R&D

This paper describes the theory of evolutionary economics in the context of pharmaceutical R&D. In this context, the R&D productivity crisis acts as a key selection mechanism, and R&D, technology and industry trends provide mechanisms of variation. Drawing on today’s prevailing business model among leading pharmaceutical companies, the biotech-leveraged pharma company (BIPCO), I propose two new value creation logics: the technology-investigating pharma company (TIPCO) and the asset-integrating pharma company (AIPCO). Although some companies already share aspects of these business models, it is not yet clear, in terms of evolutionary economics, what the ultimate outcome of the evolutionary process in pharma R&D will be.

Entrepreneurship and Social Responsibility Research: A Double-edged Sword of Economic Welfare and Social Challenges

It is widely accepted that successful entrepreneurs create both waves of innovation and prosperity and environmental and social challenges. Using economic theories such as Solow’s growth model, Schumpeter’s theory of economic development, and externality theory, this article will explore how the wealth creation and consumption of successful entrepreneurs drive innovation and economic growth, as well as the environmental, social, and financial challenges they bring, thereby providing a balanced analysis of how successful business people affect the world. The results suggest that successful business people can benefit society significantly when they consume wealth, such as creating jobs and promoting economic growth. However, making profits in some industries can lead to environmental degradation, and high-risk investments can exacerbate social inequalities. Therefore, the government needs to introduce a series of policies to mitigate the negative impact of entrepreneurs.

Три уровня международного политико-экономического анализа: новая перспектива для исследования международных проблем в эпоху многополярности

One of the key issues in current international relations studies is the structure of knowledge. The epistemological foundations of political and economic theories of international development are losing their relevance as the influence of theory on the practice of international relations wanes. The declining ability of international analysis to predict the future of world politics and economics emphasizes the need for a broader, interdisciplinary approach to the study of international relations. This study aims to explore the possibility of creating a new, practical and interdisciplinary model of analysis to address the problems of the modern international system. This approach to the systemic analysis of international relations involves broadening the scope of the study by integrating international political and economic (IPE) analysis and including three analytical levels: explanatory, normative and critical. The article defines the terminology, structure, principles and criteria of such an analysis based on the problems of modern political science. The author also points out the main difficulties in the formation of theoretical and methodological basis of the three-level analysis. Examples of analyzing problems, namely the impact of trade barriers on the instability of global supply chains and the international dimension of the energy crisis of the Federal Republic of Germany (2022 – present) are given, demonstrating the quality and consistency of the results of such analysis.

Analysis of green productivity in manufacturing based on different air pollution levels

China’s manufacturing industry needs to change from a high-emission model to one that is more environmentally friendly to reduce air pollution and achieve sustainable growth. Therefore, it is important to decrease manufacturing waste gas emissions by improving green productivity. This paper expands on the theories of green economic growth and sustainable development to present a framework for analysis of manufacturing green productivity at various levels of air pollution. It applies the Metafrontier Malmquist Luenberger index and SBM model to data from 30 Chinese manufacturing sectors from 2012 to 2022 to identify the obstacles to developing green productivity in the manufacturing sectors. The results show that: (1) From 2012 to 2022, the overall waste gas emission efficiency and GTFP of China’s manufacturing industry showed an increasing trend. (2) The manufacturing industry with light air pollution had the fastest growth in GTFP, followed by manufacturing with heavy air pollution, and manufacturing with moderate air pollution had the lowest. (3) The primary driver of GTFP growth is technological progress, while technical inefficiency has severely hindered GTFP growth. (4) There is a “Matthew effect” in the green productivity of China’s manufacturing industry. High waste gas emission efficiency often accompanies high levels of GTFP, and vice versa. Finally, this paper proposes policy suggestions to improve the green productivity of the manufacturing industry and reduce air pollution.

Strategic priorities of regional economic development in the context of regulating non-monetary factors of inflation

A vast array of research works concentrates on such aspects of inflation processes as their essence, development factors, anti-inflationary regulation, etc., but precious few of them attempt to identify the factors of inflation in the strategic priorities of regional development. At the same time, economics and state policy at both national and regional levels recognise the significant effect of inflation on economic development. The paper deals with non-monetary factors of inflation in regions and develops a path for formulating regional policy on their regulation. The theories of regional economic development and inflation constitute the methodological framework of the study. The research methods include systematization, functional and comparative analysis, deduction. We identify the provisions of the socio-economic development strategies of the Ural macroregion’s member territories relating to the regulation of non-monetary factors in the development of inflationary processes. The identified aspects of inflation reflect the impact of its non-monetary factors on regional economic development and require anti-inflationary policy to be coupled with the areas of activity of regional authorities. We present a conceptual-logical model for framing regional policy on regulating non-monetary factors of inflation in an RF subject specifying the strategic priorities of economic development that influence regional factors of inflation. The model demonstrates that it is the state programmes of Russia’s constituent entities that are the main tool for regulating non-monetary factors of inflation in the regional government system. It coordinates price regulation measures in the regions with the goals and objectives of policy aimed at developing their economies. The findings contribute to the understanding of regional inflation factors and can be used by regional authorities when executing socio-economic development strategies.

Regional drivers of industrial decarbonisation: a spatial econometric analysis of 238 EU regions between 2008 and 2020

ABSTRACT The European context of socio-economic integration and physical proximity likely plays an essential role in explaining the decarbonisation outcomes of industrial sectors. However, there is hardly any spatial regional analysis on CO2 emissions drivers in European countries. This study investigates the role of geographical space and regional determinants in industrial decarbonisation by analysing how socio-economic drivers and their interregional relationships impact industrial carbon emissions in European regions. We employ a spatial panel data econometric model to a novel panel dataset comprising 13 years (2008–20) of carbon emissions from hard-to-abate industrial sectors from 238 NUTS-2 regions across 27 European Union countries. Results indicate the presence of endogenous spatial interactions and high-time persistence between CO2-eq emissions in European Union regions. As such, industrial carbon emissions of regions follow similar patterns to their neighbours, supporting the evolutionary economic geography and growth theory assumptions of the spatial interaction of carbon emissions between regions. Furthermore, the use of a spatial econometric model illustrates the negative direct and spillover effects that higher levels of education and regional investment in research and development have on industrial CO2-eq emissions.

Influence of Cultural Festivals on Local Economic Development in Zimbabwe

Purpose: The aim of the study was to analyze the influence of cultural festivals on local economic development in Zimbabwe. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Cultural festivals in Zimbabwe boost local economic development by attracting tourists and increasing spending in businesses, hotels, and restaurants. They also create job opportunities in event management and hospitality. Additionally, these festivals promote cultural heritage and community pride, which can enhance regional attractiveness for investment. However, economic benefits are often concentrated in larger cities, leaving rural areas less impacted. To maximize benefits, it is essential for festival organizers and local governments to ensure equitable distribution of resources and support sustainable infrastructure development. Unique Contribution to Theory, Practice and Policy: Creative economy theory, event impact theory & place-based economic development theory may be used to anchor future studies on analyze influence of cultural festivals on local economic development in Zimbabwe. Local governments and festival organizers should develop targeted marketing strategies that not only attract more visitors but also extend the festival’s economic benefits beyond its duration. Develop and implement policies that provide financial and logistical support to cultural festivals. This could include grants, subsidies, or tax incentives for festivals and local businesses involved in the event.

Innovation investment and performance: the moderating role of university collaborations

Purpose Considering the historical evolution of innovation dynamics, and its paradoxical state, and answering Nelson (2008) and Winter (2014), this paper aims to analyze the dynamics of innovation within the context of the Evolutionary Economic Theory. Specifically, this study looks to unravel the moderating influence of university cooperation on the relationship between innovation expenditure and innovation results. This study aims to provide valuable insights and evidence that can inform strategic decision-making for policymakers and businesses striving to foster innovation-driven economic growth in an ever-evolving global landscape. Design/methodology/approach The quantitative methodology adopted in this study involved harvesting data from the Latin American Innovation Survey (LAIS) database and cleaning it up using Python to ensure data integrity. Subsequently, SPSS, coupled with the PROCESS macro, was employed to conduct moderation analysis. This methodological approach enabled the examination of the intricate interplay between innovation expenditure, university cooperation and innovation outcomes within a large sample of firms, thereby easing a robust exploration of the hypothesis. Findings The research highlights the moderating role of university cooperation, showing that collaborative partnerships amplify the impact of innovation spending on innovation results, advancing the understanding of the impact of university-business collaborations. Additionally, the results revealed a positive relationship between innovation expenditure and innovation results, underscoring the significance of R&D investments. Practical implications This study highlights the role of university-industry collaborations in enhancing innovation investment outcomes in Latin America. It suggests that managers should proactively engage with universities to access advanced research and foster a culture of innovation. These partnerships can significantly boost a firm's competitive edge and innovation success, marking them as crucial in the rapidly evolving economic environment. Originality/value The originality of the paper relies on bridging theoretical concepts from the Evolutionary Economic Theory framework with empirical insights of the moderating role of university cooperation. It addresses a theoretical gap, with a new methodology and offers insights into the complex relationship between universities, businesses and innovation in a constantly changing economic environment, making it clearer how these connections can help boost innovation in practical ways.

The Evolution of the Theory of Innovation Ecosystems in the Context of Strategisation

Introduction. The theory of innovation occupies one of the leading positions within the modern paradigm of economic development, as innovation is recognised as a driver of productivity improvement and cost optimisation, microeconomic stability, and macroeconomic growth. The determinants of innovation theory have become more profound, forming a synthesis with theories of economic cycles, technological development, entrepreneurship, management, and decision-making. Consequently, the theory of innovation has evolved, and the study of this process provides an up-to-date view of the theoretical foundation of innovation ecosystems. Aim and tasks. The aim is to systematise the stages of the evolution of the theory of innovation and strategic management and formalise the theoretical foundation of the modern theory of innovation ecosystems in the context of strategisation. Results. A systematic study of the genesis and ontogenesis of the theory of innovation and anagenesis of the theory of innovation ecosystem in the context of strategisation led to the determination of the characteristics of aromorphosis. Genesis and ontogenesis include the growing complexity of the innovation ecosystem and its adaptability to the changing innovation ecosystem in the long term, the dynamism of the composition of the innovation ecosystem without changing its strategic goals, the need for a second level of adaptation of the strategy of an individual actor within the strategy of the innovation ecosystem and strategic role, and increasing the integration of actors of the innovation process into systemic business processes (planning, organisation, motivation, control). Actors’ joint development within the ecosystem on mutually beneficial terms and possibilities for the strategic expansion of the innovation ecosystem locally and globally were analysed. In addition, the externalities of the development and spread of innovative ecosystems are outlined, and their strategic orientations are formulated. Conclusions. Due to anagenesis, an innovative ecosystem based on strategising improves adaptive resistance to changes in the external environment. Aromorphosis of an innovative ecosystem within anagenesis makes it possible to consider the properties of adaptation to the changing innovative ecotope as the basis of its theoretical foundation in the long term, the dynamism of the composition of the innovation ecosystem without changing its strategic goals, and the increasing integration of innovation process actors into systemic business processes.

Impact of Trade Liberalization Policies on Investment and Development in Developing Countries

Purpose: The aim of the study was to analyze the impact of trade liberalization policies on investment and development in developing countries Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Trade liberalization policies have led to increased foreign direct investment (FDI) inflows and export opportunities in developing countries. However, they have also posed challenges such as heightened competition and vulnerability to external shocks. The effectiveness of trade liberalization policies varies across countries and depends on factors such as institutional capacity, infrastructure, and trade-related regulations. Unique Contribution to Theory, Practice and Policy: Dependency theory, institutional theory & stages of economic development theory may be used to anchor future studies on the impact of trade liberalization policies on investment and development in developing countries. Policymakers should prioritize the design and implementation of targeted interventions aimed at maximizing the benefits of trade liberalization while mitigating its potential adverse effects. Moreover, policymakers should prioritize investments in education, healthcare, and social protection to enhance human capital development and ensure that the benefits of trade liberalization are equitably distributed across society

Study on the Path of Integration of Southeast Gui Townships into Guangdong's Great Bay Area

As one of the key strategies for China to lead the economic development in the new era, since the in-depth implementation of the reform and opening up for forty years, the Guangdong Greater Bay Area, with its diversified industrial pattern, has vigorously promoted the rapid growth of China's economy and played an indispensable role in the global competition. Its unique geographical location and all-round policy support, as well as its huge economic hinterland, have laid a solid foundation for the synergistic development of industries in the region. Of particular concern is that the town cluster of southeast Gui, consisting of Wuzhou, Yulin and Guigang, is seizing the favorable opportunity of the Pearl River-West River Economic Belt to fully tap its own regional potential, actively expand the scope of external cooperation and exchange, take the initiative to initiate beneficial docking with many developed regions such as Guangdong, do a good job of undertaking industrial relocation, and rely on the Xijiang Golden Waterway to promote the development of advantageous industries and build up a A town system with clear division of labor and mutual cooperation. This innovative theory of synergistic regional economic development provides valuable ideas for the current stage of economic transformation and upgrading in China. It is crucial for the linkage development between the two regions. Therefore, the establishment of Guangdong's Greater Bay Area opens up a broader space for the development of Guandong's southeastern town clusters, while the latter likewise needs to be actively involved in the construction of the Greater Bay Area, to meet the challenges and grasp the opportunities, and to realize the mutual benefits and win-win situation between the regions.This paper takes the main line of researching the integration of Gui-Southeast Townships into the construction of Guangdong Great Bay Area as the main line, and summarizes the content of the article research by finding relevant information, collecting literature monographs, etc. The content of the whole article is divided into five major parts for comprehensive elaboration, firstly, based on the research experience of relevant scholars, combining theoretical foundations and relevant concepts, and then, from the status quo and problems of the integration of Gui-Southeast Townships into the Guangdong Great Bay Area, the analysis of the degree of industrial synergies between the Gui-Southeast Analysis of the degree of industrial synergy between the urban agglomeration and the Guangdong region, and finally propose important paths and countermeasures for integration based on the results of the analysis.The results of the study found that:First, the degree of industrial association between different counties and cities and the Guangdong Greater Bay Area is affected by the structure of their respective three industries. Second, the development indexes of Guigang, Yulin and the whole Guangdong region show an upward trend, while Wuzhou's development index is lower in comparison, and it is found that the development indexes of Gui-Southeast can be narrowed through the vigorous development of Gui-Southeast. Thirdly, the synergies between the Gui-Southeast urban agglomeration and the Guangdong Bay Area are at a low level, and there is a serious lack of synergy for some time. Therefore, in order to integrate into the Greater Bay Area of Guangdong, it is necessary to study and learn from the advanced development experiences at home and abroad, optimize the industrial structure, improve the system of accepting industrial transfer, improve the transportation facilities, accelerate the promotion of connectivity to improve the quality and increase the quantity, deepen the reform of the system and at the same time clarify the positioning to undertake the major industrial projects that are difficult to be arranged in the layout of the Greater Bay Area of Guangdong, with the aim of realizing a better integration of the South-East Gui Townships into the construction of the Greater Bay Area, and to create a better environment for resource sharing and cooperation between the two regions. Create a situation of resource sharing and win-win cooperation between the two places.

TOWARDS AN EVOLUTIONARY ECONOMIC THEORY

Today, the neoclassic economic theory still dominates the economic analysis, prediction, and even public economic policy, encouraged, unfortunately, by the career criteria in science and education fields. In such a context, the objectives of the paper are: (1) to systematize the findings related to the unrealism and theoretical and methodological mistakes of the economic neoclassic model; (2) to argue about the desirability, reliability, realism, and efficaciousness of an evolutionary model of the economy (and of Economics); (3) to draw the basic lines which an evolutionary economic theory could be edified on, starting from both the statu quo in the matter and the logical examination of the question. The approach of research is a mix between logical and historical (but not empirical) views regarding the evolutionary economic model/theory. The main results are: (a) arguing on the possibility of crystalizing the basic concepts of an evolutionary economic model; (b) making proposals for the evolutionary economic mechanism (in its abstract understanding – as cybernetic system of order 3); (c) warning on the risks of a tale quale taking over of the evolutionary concepts from Biology; (d) identifying the principles to be followed in building up of an evolutionary economic theory.

Cultural Innovation in Indonesia as a Development of the Creative Economy

Culture is a part of life that regulates the norms and habits of society. Culture takes two forms: material culture and non-material culture. Through the Creative Economy Agency, the creative economy has been promoted as one of the new pillars of the Indonesian economy. This study aims to analyze the culture-based creative industry as an option for advancing the creative economy in Indonesia. This study applies the theory of economic development by Joseph Alois Schumpeter to emphasize the creativity of entrepreneurs in using existing production factors to support economic activity. Data was collected from secondary data related to the cultural and creative economy. The results show that the creative industry in Indonesia has emerged as the answer to the creative economy system and has also shown rapid development. Practically, in Indonesia, abundant opportunities exist for a culture-based creative economy, spanning various sectors such as arts and tourism, awaiting innovation by industry actors. Government facilitation and increasing engagement from individuals further support this burgeoning creative landscape, aligning with the Ministry of Tourism and Creative Economy/Tourism and Creative Economy Agency’s mission to bolster Indonesia's economy by 2030 through successful synergy between government and industry

“Evolutionary economics”: possibilities for forming the policy of growth and technological changes

The study is devoted to the consideration of internal methodological limitations of the flow of “evolutionary economics”. The author’s goal is to identify the inherent limitations of the analysis of “evolutionary economics” and limitations in terms of influence on the formation of economic policy. The methodology is based on the theory of evolutionary economics and orthodox approaches in the field of economic analysis, the theory of economic policy and growth. The author comes to the conclusion that “evolutionary economics”, despite the broad mathematical apparatus used, has limited capability for planning and interpreting the implementation of economic policy — in particular, the use of tools for stimulating economic growth at which mainstream economics is still good, although not without certain constraints. Thus, in order for evolutionary economics as a scientific movement to acquire significant weight among economic theories on the basis of which it is possible to build economic policy, it is necessary to methodologically solve the problem of harmonizing short-term and long-term guidelines and parameters of development, as well as the problem of fast and slow variables, describing the functioning of the economic system. The solution seems to be the so-called neo-Schumpeterian theory of evolution, with the help of which it is possible to model and explain development at various time intervals by analyzing the competition of old and new combinations, affecting not only innovations, technologies, but also institutions, as well as interacting agents — innovators, imitators and conservatives. It is shown how structural dynamics reflects the evolution of the economic system.

FORMATION AND EVOLUTION OF THE THEORY OF REGIONAL ECONOMICS IN CHINA

FORMATION AND EVOLUTION OF THE THEORY OF REGIONAL ECONOMICS IN CHINA

Pareto’s legacy in the Italian tradition: the case of mathematical economics

Pareto’s personality had a great influence on the evolution of economic theory in the last century at least in the Italian context. At the beginning of the twentieth century a small but combative circle of followers aimed to defend and spread the new Paretian approach based on the idea of general economic equilibrium. Paretian scholars were well recognizable in the Italian context for their contributions to mathematical and statistical aspects. The purpose of this contribution is to outline the essential features of the Italian Paretian school in the field of pure economics or as we would say today of mathematical economics. This favorable position of the Italian tradition in the field of mathematical economics was basically due to two circumstances. The first was represented by the legacy of Pareto and his school while the second was to be found in the fact that among the students of Pareto there was a pure mathematician of great value Luigi Amoroso. We see then that an important voice even if poorly valued was that of Bruno de Finetti who published a remarkable series of articles on mathematical economics in the second half of the 1930s. After World War II the Paretian tradition in this field weakened considerably and effectively disappeared internationally.

CONTEXTUALISING ENTREPRENEURSHIP AS A PANACEA TO YOUTH UNEMPLOYMENT IN SOUTH AFRICA

Youth unemployment has bewildered governments across the globe, both in developed and emerging economies countries, with South Africa being no exception. This is captured through the accelerating youth unemployment rate in the country. Considering the positive contributions of excessive youth entrepreneurship policies in other countries, this paper, through the lenses of Schumpeter’s 1934 economic development theory, demonstrates that through entrepreneurship, the South African government should strive to accelerate the already implemented and discard the less effective youth policies. Consequently, creating an innovative environment centered around the youth eradicates the exacerbating percentage of inactive or discouraged youth due to unemployment. Longer spells of inactivity threaten their human development and their contribution to the South African economy. Therefore, a youth-driven entrepreneurship economy can assist the government in counter-solving upcoming and persistent negative effects of unemployed youth. Keeping the youth productive, and innovative, creating jobs and incomes.

Natural resource governance and strategic economic resources: The perspective of Indonesia Raya Incorporated

The study aims to identify and describe the theory of economic development according to the thinking of Indonesia Raya Incorporated (IRI) in managing the interest of natural resources included in strategic economic resources. This study used a qualitative method through a grounded theory approach with constructivism and criticism as the interpretation approach. The data collected through the Focus Group Discussion (FGD) technique was processed using a componential analysis approach. The study results reveal the content of the main variables of economic development, namely the role and function of the government and state enterprises, namely State-Owned Enterprises (SOEs) and Regional-Owned Enterprises (ROEs), related to the potential of managing natural resources and other strategic economic resources which are determinants of the economic strata of population or for improving the welfare of the people. These novel findings highlights the significance of natural resource governance and strategic economy, namely the IRI’s perspective on economic development. The theory and conception contribute to deepening knowledge previously proposed in IRI and Murakabi economics. So, this knowledge has implications for natural resources management practices by the government and corporate strategies within the body of SOEs and ROEs in Indonesia and the global world. This includes the possibility of strategies for national and multinational private companies whose main business positions are based on natural resources and strategic economics.