Regional Development Theories: A Vicious Circle?

Regional Planning and Development Theories

The implementation of non-equilibrium development through non-balance policy among different regions is one of the most significant characteristics of China mode. The regional development mode supported by the regional plans and policies in China is stepping into regional coordination development after the stages of the initial development of the eastern area, development of the west, revitalization in the northeast, and rise of central region. Under the government-oriented market economy system, the orientation effect that local governments pursue the administrative achievements is the important interior motive for regional development. However, the performance appraisal mainly based on GDP will easily lead to the vicious competition together with similar structure among regions, the ignorance of interregional cooperation, and the friendly interaction with external environments. Meanwhile, the present regional development evaluation methods, which emphasize interior all-side elements and their quantity matching through the index setting in terms of dimensionality and weight, face the serious conflict against the real fact of regional division based on each advantage supported by resource endowment and regional cooperation based on exchange, inter-regional arrangement and hierarchical governments. Thus, it is quite necessary to construct a more reasonable method of regional coordination development evaluation. In this paper, according to system theory and coordination theory, a two-level and five-dimension analysis framework of regional coordination development is proposed, and a evaluation model for appraising the status of coordination development of both national level and regional level from the corresponding dimension is established.

B ENNER C. (2003) Labour flexibility and regional development: the role of labour market intermediaries, Reg. Studies 37 , 621-633. As contemporary labour markets have become more complex, volatile and unpredictable, labour market intermediaries (LMIs) have played an increasingly prominent role in shaping labour flexibility and regional development. Existing theories of regional development, however, do not adequately account for this prominent role. Using Silicon Valley as a case study, this paper contributes to developing a theory of intermediaries and regional development by highlighting the role LMIs play in three important labour market functions - reducing transactions costs, building networks and managing risk. In doing this, intermediaries play a critical role in shaping the speed and character of labour market adjustment, thus contributing directly to regional development, with significant implications for regional development policy. B ENNER C. (2003) La flexibilité du travail et l'amé nagement du territoire: le rôle des intermédiaires dans le marché du travail, Reg. Studies 37 , 621-633. Au fur et à mesure que les marchés du travail sont devenus plus complexes, plus précaires et plus imprévisibles, les intermédiaires dans le marché du travail (IMT) ont joué un rôle de plus en plus important dans la dé termination de la flexibilité du travail et de l'aménagement du territoire. Toujours est-il que les théories actuelles de l'amé nagement du territoire ne tient pas compte convenablement de ce rôle important. A partir d'une étude de cas, à savoir la Silicon Valley, cet article cherche à contribuer à la construction d'une thé orie des intermédiaires et de l'aménagement du territoire tout en soulignant le rôle des IMT dans trois fonctions importantes sur le marché du travail - la réduction des frais de transaction, la construction de réseaux et la gestion du risque. De cette manière, les intermédiaires jouent un rôle primordial dans la détermination de la vitesse et de la nature de l'ajustement du marché du travail, ainsi contribuant directement à l'aménagement du territoire, d'où d'importantes conséquences pour la politique d'aménagement du territoire. B ENNER C. (2003) Flexibilität der Arbeiterschaft und regionale Entwicklung: Die Rolle der Arbeitsmarktvermittler, Reg. Studies 37 , 621-633. Da die heutigen Arbeitsmärkte komplexer, unbeständiger und unvorsehbarer geworden sind, haben Arbeitsmarktvermittler (Labour Market Intermediaries=LMIs) eine zunehmend wichtige Rolle bei der Gestaltung der Flexibilität der Arbeiterschaft und der regionalen Entwicklung gespielt. Vorhandene Theorien der Regionalentwicklung geben jedoch nur unzulängliche Auskunft über die Bedeutung ihrer Rolle. Mit Hilfe einer Fachstudie von Silicon Valley trägt dieser Aufsatz zur Entwicklung einer Theorie der Vermittler und regionaler Entwicklung bei, indem er die Rolle hervorhebt, die LMIs in drei bedeutenden Arbeitsmarktfunktionen spielen: der Reduzierung der Abwicklungskosten, der Konstruktion von Netzwerken und der Absicherung von Risiken. In dieser Kapazität spielen die Vermittler eine kritische Rolle, indem sie Tempo und Charakter der Arbeitsmarktanpassung gestalten, und so direkt zur Regionalentwicklung beitragen; dies hat signifikante Implikationen für die regionale Entwicklungspolitik.

Regional unbalanced development refers to a common phenomenon in the process of regional development. China is currently in the process of transitioning from regional unbalanced development to balanced development. Therefore, it is of theoretical and practical significance to sort out the theory of regional unbalanced development and China's practical experience. Representative regional historians and economists have explained the process of regional unbalanced development from the perspectives of historical reality and economic theory, and have developed relevant theories. Pero believed that the significant differences in the foundations of economic development among different regions led to the emergence of regional imbalances. Hirsch emphasized the necessity of imbalanced development in the early stages of economic development, while Myrdal further explained the reasons and mechanisms of uneven growth, as well as how it affects regional economic development. The main manifestations of unbalanced regional development in China currently include: uneven development in the four major regions, uneven development within regions, and uneven development between urban and rural areas. In response to the problem of unbalanced development in China, China has taken measures such as organizing and implementing the poverty alleviation campaign, deepening the implementation of regional coordinated development strategies, and promoting new urbanization centered on people to narrow the regional development gap.

Due to the unique characteristics of the innovation process, the government plays an important role in its stimulation. However, the adaptation of national innovative policies to regional and local conditions is the responsibility of regional and local authorities. Sustainable development of the region will be achieved only if its stakeholders such as business, R & D units and the relevant authorities are involved. The primary task of the public authority is to coordinate activities and to create a favorable climate for economic development in the region. Both primary and secondary regional development theories define multiple sources of economic growth. The main objective of this article is to show the role of local government in the development of regional innovation policy in accordance with the secondary theories of regional development. Secondary theories are based on the following primary theories: the economic base theory of W. Sombart, the growth poles theory of F. Perroux, the A. Marshall’s industrial districts theory, the theory of industrial clusters of M.E. Porter and the J.Coleman’s theory of social capital. Due to the limitations of this article, the text describes only some secondary theories of regional development. These theories come from the economic base theory of W. Sombart and the industrial districts theory of A. Marshall.

The current reforming of local self-government, territorial organization of authorities and administrative-territorial division in Ukraine require new approaches to managing regional development. Therefore, the purpose of the article is to substantiate the theoretical aspects of the concept of balanced regional development. In the study, the author applies systematic approach, theoretical generalization, method of scientific abstraction, logical-semantic method and graphical method. The results of the study show that the concept of balanced regional development should be considered through the prism of seven concepts and theories. Thus, regional development theories (individual theories of spatial organization, utilization of the region's potential and innovation and knowledge, as well as theories of social change) help to perceive the region as a coherent system with the potential for development. The concept of sustainable development emphasizes the importance of meeting the needs of today without sacrificing the needs of future generations. The concept of a smart region combines smart governance, economy, mobility, environment, people and lifestyle. The concept of new pragmatism is reminiscent of taking into account, in governing a region, the system of values "profitably, lawfully, non-immorally". In accordance with the concept of reconstructive development, it is advisable to combine the introverted, inclusive and innovative development of the region. Stakeholder theory points to the need to identify the main stakeholders and establish communication between them. At the same time, behavioral theory emphasizes the strengthening of the role of the human factor in regional development, which actualizes the study of the influence of psychological factors. As a result, the study identified balanced regional development as a long-term process of regional reconstruction with due regard to the existing potential, harmonizing stakeholder interests and establishing communication, optimal balance of environmental, social and economic goals, social justice, cohesion and responsibility. Understanding the nature and features of balanced regional development is theoretically and practically important as it is capable of enhancing the effectiveness of regional governance.

Objective: This study aims to analyze the contribution of Regional Development Banks (BPDs) to Gross Regional Domestic Product (GRDP) and poverty reduction in Indonesia during the 2014–2023 period, with a focus on the role of third-party funds (DPK) and loan disbursement as financial intermediation mechanisms. The study is framed within the context of the Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). Theoretical Framework: Grounded in the theory of financial intermediation and regional economic development, this study employs both supply-leading and demand-following approaches. Concepts of financial assets and macroeconomic indicators are used to explain the relationships among financial intermediation, economic performance, and poverty outcomes. Method: Using a quantitative approach, panel data from 34 provinces were analyzed through regression to assess the influence of DPK, total assets, and total loan on GRDP and poverty levels. Data were sourced from the Indonesia Financial Services Authority (OJK), Statistics Indonesia (BPS), and BPDs financial reports (2014–2023). Results and Discussion: The findings indicate that DPK positively influences loan distribution, while total assets show no significant effect. BPD loans have a positive impact on regional economic growth and contribute to poverty reduction. Economic growth also plyas a significant role in decreasing poverty, hihglighting the strategic role of BPDs in promoting inclusive and sustainable regional development in line with SDG targets. Research Implications: This study supports the institutional strengthening and digital transformation of BPDs to enhance financial efficiency, inclusion, and their contribution to sustainable development. The results offer policy insights for aligning regional banking practices with Indonesia’s national development agenda and the global SDGs framework. Originality/Value: This research presents comprehensive empirical evidence from all Indonesian provinces, revealing the causal relationships between BPD performance, economic growth, and poverty alleviation. By situating these findings within the SDGs context, the study contributes to the discourse on the role of subnational financial institutions in sustainable regional development.

The subject of this thesis was chosen from both a professional and an academic interest in the economic development of Oregon. Prompted by proposals made to the Oregon Legislature to initiate various forms of industrial subsidy programs to disperse economic growth and population away from congested areas, this research effort seeks to provide an evaluative analysis of the effectiveness of subsidy techniques in influencing industrial location and stimulating a sustained growth process in less developed areas. Research was undertaken in two primary subjects: 1) theory of regional economic development and the effects of subsidies on the growth process; and 2) empirical evidence of the effectiveness of industrial subsidy programs on regional development in other areas. Information was obtained from the following resources: The author’s library of reference literature on economic development and the bibliographies contained therein; Professional organizations, particularly the library of the American Industrial Development Council, as well as requests for literature from various members of those organizations; University library resources, including: Bureaus of Business Research, Bibliography, 1968-1970; Public Affairs Information Service, 1965-Jan. 3, 1973; Business Periodicals Index, 1965-1972; Journal of Economic Articles, 1967-Dec., 1972; Index to Economic Literature, 1966-1970; U.S. Library of Congress, National Union Catalog, 1960-1972; Council of Planning Librarians, Bibliographies; Colorado University, Public Catalog of Norlin Library holdings; Colorado Technical Reference Center. Using information obtained from these and other sources, a method was obtained for defining and measuring the economic and social welfare objectives of a regional development program in Oregon. Geographical patterns of economic health indicators were mapped for the state This is followed by an analysis of various types of subsidies and their effects on resource allocation and gross output. It was found that wage subsidies offer optimum benefits for labor-surplus areas with less distortion of capital efficiency than do capital or price subsidies. Justification for subsidies was found to be greatest using social benefits as criteria rather than maximization of economic output. The influence of industrial subsidies on location decisions is then examined. Following an analysis of effects of subsidies on the cost structure and profit potential for the firm, financial and tax incentives are separately reviewed in case histories of subsidy programs. It was found that capital investment subsidies have had considerably more location influence than tax subsidies. In any case, however, subsidies were determined to be marginal, rather than decisive, locational factors with more basic economic criteria, such as labor availability

Regional development is an important interdisciplinary research field among geography, resource and environmental sciences, economics and management sciences that is characterized by three distinctive features of comprehensiveness, spatial diversity and time variability[1]. Due to the extremely complex role of “human” in its affecting factors, driving mechanism and development status, regional development displays an eminent feature of uncertainty. It is not only the important foundation of modernization process in China, but also a key dimension of the implementation of the Scientific Outlook on Development and the construction of harmonious society. The carrying capacity of natural resources and eco-environmental foundation is weak with great disparities in the natural background and physical structure of different regions in China. Meanwhile, the pressure exerted by the increasing amount of economic aggregate and the expanding process of urbanization is intensified. As a result, a large number of scientific and technologic issues in regional development are of great significance to the development of our country which is characterized by such distinctive features and is currently at the stage of industrialization[2,3]. Internationally, there have been some scholars in developed countries conducting research on land and regional development and getting involved in the making of territorial governance policies by various governments[4,5]. In fact, some key international programs, such as the “International Human Dimensions Program” (IHDP) has already revealed the interactive relationship between human socio-economic activities and physical foundation at different spatial scales through a combination of socio-economic development with global changes in natural sciences [6].

In regional planning the aim is to make optimal use of resources for developing the regions. One of the most crucial issues in regional development is recognizing the spatial and economic structure of the region. In studying the economic structure of the regions, middle cities have an essential role after first class cities. Nowadays, in most developing countries the planners' tendency toward spatial decentralization, reducing regional inequalities, etc. has led to adopting different urbanizing strategies. In this regard, the present research aims at analyzing and studying the role of Zabol city in regional development. This research adopts a descriptive-analytical approach based on library resources and field study and in order to analyze the data the AHP model is used. The results show that indicator C (reducing regional inequalities) with a weighted mean of 0.391 stands the first and indicator D (accommodating the population in the region) is placed the fourth with a weighted mean of 0.191.

Chapter 3 observes the socialist and sociological theories of adolescence, urbanity, and regional development which underwrote James T. Farrell’s Studs Lonigan trilogy and Richard Wright’s Native Son, two portraits of “extreme youth” set in Chicago’s South Side. Distinguishing themselves from the earlier Midwestern naturalists, rural or urban, Farrell and Wright portrayed a Midwest utterly voided of the region’s organic environmental features. They instead mapped the inorganic contours of the urban spaces that enclose the young protagonist’s development, to accentuate the conscious and unconscious psychological effects of that mode of living upon developing subjects. The experimental method they enacted was this: a “delinquent” adolescent—whose emulation of racist stereotypes stalls their maturation—is situated within the confines of Chicago’s South Side neighborhoods. These locations formed a microcosm of the ethnic and class antagonisms that accompanied mass migration, including systemic issues relating to cultural integration, pluralism, and 100% Americanism. These neighborhoods formed strategic battlegrounds upon which these effects of national policies and regional development were rehearsed. The story of the region’s uneven development as told by Farrell and Wright thus redefined the Bildungsroman’s teleology of development that was configured by the soul-nation allegory.

The article presents information about the new integration theory of sustainable regional development. It is an empirically verified theory; its main components are the business environment quality (BEQ), the innovation potential of companies (IPC), and the use of human resources (UHR). Its foundations can be expressed as follows: an improvement of regional quality of business environment stimulates the development of entrepreneurial activities with positive impacts on employment rate and creation of innovations; thus generated synergic effects reinforce the territorial integration of economy and regional competitiveness, which form the basic prerequisites for sustainable regional development. The objective validity of the theory has been confirmed mainly based on hypotheses that BEQ values have strong links to GDP level and further and correspond with the population of regions as the essential measure of their significance. Application of theory allowed formulating a regional development strategy of the Czech Republic.

The article examines the problem of defining the subject area of regional economics, emphasizing the difficulties and challenges associated with a variety of theoretical approaches, the multilevel nature of economic processes and a variety of methodological approaches. The main areas of research in the regional economy, such as spatial economics, economic geography, theory of regional development and urban economics, are analyzed. Special attention is paid to inter-level interactions and methodological tools used to analyze regional economic processes. It is concluded that an interdisciplinary approach is necessary for a full understanding and development of the regional economy.

In the paradigm of dissipative structures based on theories of economic and regional development, business networks, and the theory of algocognitive culture, the authors studied the processes of the formation of ecosystem formats for business development in the region as the core of a new technological paradigm. The research aimed to identify the relationship between current development formats in digital transformation with the basic foundations of business ecosystems and the possibility and willingness to use ESG principles and network practices to replicate cognitive forms of human brain hypernetworks. In this research, the authors used the methods of systemic and comparative analysis, grouping, and generalization including the authors’ practices of functional environmental analysis. As a result, the primary trends showed cooperative-network multi-level formats of interaction between business partners in the space of value formation, the development of the business ecosystem environment of the regional economy, and guidelines for the development of service practices. The new ecosystem formats implemented in the economy are considered as a manifestation of the patterns of dissipative structures and new realities of algocognitive culture including the formation of algorithmic thinking of a contemporary person. The compliance of the development of mass businesses in the region with the primary basic characteristics of ecosystems and their active use of basic digital technologies in business processes is shown. The authors revealed the readiness and need for the development of the economy of the region in the formats of ecosystems and a sufficient degree of development of this kind of format by various businesses of the territory. The possibility and necessity of using digital models of business ecosystems were established and the primary hypothesis of the research was confirmed, which forms the assumption about the active development of modern formats of interactions in the environment of small and medium-sized businesses and their cooperative associations. It provides a basis for the proposal and development of digital models of such interactions, which should significantly increase the effectiveness and speed of qualitative changes in the transition to a new technological way of life.

The relevance of the research stems from the nature of the approaches to the definition and measurement of regional welfare still debated in the extant research. Particular importance attached to this problem is related to the concept of sustainable development, which centres on promoting prosperity while protecting the planet. The paper aims to form an original theoretical model depicting the mutual influence of sustainable regional development and regional welfare. The fundamental propositions of the concept of sustainable development and welfare economics, as well as regional and spatial development theories constitute the methodological basis of the study. The methods used are comparative analysis, synthesis, and conceptual modelling. The findings confirm that regional welfare acts simultaneously as a target due to having the elements identical to the spheres of sustainable development in its struc ture, and as the key factor in the sustainable regional development due to incorporat ing a set of material and non-material, economic and non-economic goods, which build up the economic, social, environmental, and institutional elements ensuring an incessant process of changes in the regional socio-ecological-economic system impacted by interregional, national and international factors of external environment of a region. The proposed conceptual model advances scientific ideas about the main tenance of sustainable regional development, contributes to the theory of welfare, and creates a basis for devising a method to measure regional welfare.