Underemphasis on local economic development

Other Names:
Disregarded role of local initiatives
Economists, using growth models, have traditionally explained output and economic growth by the amount of capital and labour employed and the level of technology engaged. Policies to promote economic growth have consequently emphasized investment and savings, mobility of capital and labour and the level of technology. These models have been less than satisfactory since large unexplained residuals normally remain. (Regional growth models are variations of the macroeconomic models with location taken into account to explain differences in growth rates between regions. Policy prescriptions for regional development focus on ameliorating spatial disadvantage through infrastructure improvements.) Local development can help explain the residuals which remain unexplained in the macroeconomic growth models.
Related UN Sustainable Development Goals:
GOAL 1: No PovertyGOAL 2: Zero HungerGOAL 3: Good Health and Well-beingGOAL 4: Quality EducationGOAL 5: Gender EqualityGOAL 6: Clean Water and SanitationGOAL 7: Affordable and Clean EnergyGOAL 8: Decent Work and Economic GrowthGOAL 9: Industry, Innovation and InfrastructureGOAL 10: Reduced InequalityGOAL 11: Sustainable Cities and CommunitiesGOAL 12: Responsible Consumption and ProductionGOAL 13: Climate ActionGOAL 14: Life Below WaterGOAL 15: Life on LandGOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Problem Type:
F: Fuzzy exceptional problems
Date of last update
04.10.2020 – 22:48 CEST