Theories of Local Economic Growth (Part 1): Concepts, Models, and Measurement

Abstract

IntroductionUnderstanding the processes and patterns of economic development is at the heart of economic geography. Explanations of these processes have become increasingly elaborate as the processes of internationalization and globalization have intensified the complexity of economic and social interrelationships and the arenas within which these interrelationships are played out (Dicken, 1998; Lee and Wills, 1997; Thrift, 1998; Yeung, 1998). The crisis in capitalism that became apparent in the late 1960s highlighted the limitations of Fordism and the weaknesses of the branch-plant economies it created. Those economies suffered from a lack of locally autonomous decisionmaking, increasingly narrowed occupational opportunities, and corporate sector enterprises that no longer provided industrial environments conducive to indigenous economic growth (Gillespie, 1983;Scott and Storper, 1992). Analytical attention has now shifted towards indigenous development and local capacities to generate self-sustaining economic growth.In the past twenty years, a range of theoretical frameworks and empirical analyses has emerged in economic geography. They combine, in different ways at the local scale, processes associated with technology and knowledge, markets and competition, transaction structures, networks and interenterprise relations, labour markets, and culture and embeddedness to explain differences in local economic dynamics and in the

Labor Market Dynamics and Technology Adoption: Theory and Empirical Evidence

“…A similar sectoral selection is proposed in several other studies (e.g. Plummer and Taylor, 2001a;2001b;Andonelli, 1990;Alderman, 2004;Alderman and Fischer, 1992).…”

A Comparative Analysis of the Upcoming Beijing-Tianjin-Hebei Region

“…By promoting the orderly transfer of industries, the region can achieve the mutual benefits and win-win situation. (Plummer and Taylor, 2001). According to the theory of comparative advantage, each party in the region should focus on the development of industries with its own comparative advantage and then benefits from the regional trade (Phillips, 2011).…”

Quality And Safety Management Systems: Joint Action For Certification Of Small Firms In An Industrial Cluster In Brazil

“…The benefits of industrial clustering can be explained by means of external economies -the cost-saving benefits of locating a company close to external resources such as skilled labor, specialised training, research institutions, etc. [48]. Besides external economies, small businesses in industrial clusters may gain competitive advantage through inter-firm relationships with other small businesses [22], through supply relationships with larger firms [47], and through joint actions enabled by collaboration among companies [21].…”