Economic Development: A Regional Perspective

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Economic development – A regional perspective The economic reforms have positively contributed towards the nation’s development in a macro perspective. Improvement in trade relations between nations and the free movement of goods and services led to increased growth in the economy. Thus the globalisation and liberalised economic policies by different nations has gradually frayed many national and state economic institutions. Globalisation has also played a key role in industrial development and the mechanisation of traditional subsistence sectors of the economy. The introduction of multinational corporations has led to the exploitation of international economic institutions and also contributed much towards the capital formation process. On…show more content…
Bottom up approach of regional economic development facilitates the flow of localised economic variables so as to gain maximum output from it. Traditional approaches fails to exploit the regional resources effectively and thus remained inefficient and uneconomical in nature. This approach also takes into account the past performance of the policies and evaluates accordingly to make viable economic decisions. Apart from the traditional approach of decision making bottom up approach used extensive regional approach techniques and methods. Economists find this approach apt for most of the developing countries which can attract more foreign investments and initiatives by efficiently using the locally available resources and information. Performance oriented growth structures enable the process of policy making and implementation much easier. Globalisation process finds this approach a suitable system to operate in such a manner to attain maximum economic goals within the stipulated time…show more content…
The overall development of a region depends upon the information available in the domestic framework and also the flow of knowledge from other sources. Cultural and socio- economic forces play a key role in the process of regional growth and development. The influence of these factors makes the process of development, multidimensional in nature. The neo liberalised policies and structures enables the process of utilising and exploiting the available localised information. Most of the less developed regions finds in difficult to compete with the rich regions due to the scarcity of available resources and techniques. Globalisation process enables the localised regions to interact with other economic actors and instils a sense of globalised village concept. Most of the traditional boundaries and trading rules were thrown away by this new reform happened in the world economy. The regional economic development is highly influenced by this globalisation process. Globalisation reduces the glaring inequality existing between the

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