Most countries in the world have embraced globalization and information and communication technology (ICT) as tools for economic development. However, there are many factors that need to be considered when evaluating the impact of ICT and globalization on local economic development. In this paper, we develop an integrated framework that provides an explanation for the new relationships between ICT use for global needs (such as outsourcing), local ICT use, economic development and disparities, and we illustrate these developments using a case study of Bangalore, India.
Evidence of income divergence at various scales provides the motivation for examining the role of selected inertia and endogenous factors in the development process with particular emphasis on the role of interregional dynamics and policy. A body of work on interregional dynamics that relies on an extended Lotka-Volterra model to keep track of the structure of spatial dependence among regions is briefly considered. It offers a promising starting point for an improved understanding of the factors behind trends in income and for expanding policy options. Examples from China and India but with a greater emphasis on India are provided.
During post-1991, India has been witnessing a rapid and widespread growth in industrialisation, especially in the service sectors, like the IT, visual media and entertainment. These sectors grow at a CGR rate of 30-40 per cent a year. Moreover, they tend to locate in agglomerated markets (large cities, e.g.). What are the implications of this in terms of regional economic development in India ? There are signs that since the mid 1980s, there has been a new impetus on increasing regional economic disparities : “divergence” rather than “convergence” in per capita State Domestic Product (SDP) has been the norm among the Indian states. The paper intends to assess the locational shift in industrialisation in recent times and its implications for the regional economic development of India. The process entails (i) political fall-out in terms of lagging regions, which cannot capitalise on the new technology and investments in service industries; (ii) large-scale migration of young manpower to employment opportunities in the fast growing regions; and (iii) increasing of income differentials and social welfare standards between the constituent states of India.
In the global economy, dispersion of production has become a main force of international manufacturing, which has its own impetus and mechanism. After analyzing the connotations and effects of dispersion of production, we set some hypotheses and estimate the degree of both the integration of trade and the dispersion of production in the Yangtze River Delta area as well as the whole nation of China based on input-output tables. Then, a correlation test between the dispersion of production and the integration of trade is performed. The empirical tests support the hypothesis that integration of trade and dispersion of production can explain each other. Other variables, such as extroversive index, capitalization index, and transaction cost etc. can also explain integration of trade and dispersion of production. The Granger-causality test reveals that both the dispersion of production and the export extroversive index are causes of the integration of trade, and the capitalization index is not only the cause of the integration of trade but also the cause of the dispersion of production.
In this paper, we will develop a dynamic multi-regional Computable General Equilibrium (CGE) model with transportation networks. We define two economies, a centralized economy and a decentralized economy. In the centralized economy, a social optimization problem is formulated where the social welfare is maximized subject to the inter-temporal constraints of product, labor and capital markets. In the decentralized economy, a market economy with utility-maximizing consumers and value-maximizing firms which face costs of adjustment for capital is characterized. We show the equivalency of two economies because there is no distortion in the market system. A simulation model is specified under the multi-regional and inter-sectoral economy in Japan which is connected by four kinds of transportation networks, i.e., road, railway, sea and air. A numerical example is performed to show the behavior of the dynamic solution.
This paper introduces scenario planning as a tool to explore plausible developments for SMEs in the Netherlands until 2040. SMEs are acknowledged to play an important role in the economy serving as agents of change by their entrepreneurial activity, being the source of considerable innovative activity, stimulating industry evolution and creating an important share of the newly generated jobs. Entrepreneurship should therefore be promoted. There is however great uncertainty on the scale of future bottlenecks and the economic conditions under which SMEs will need to develop. There are different forces at play on the global, regional, EU, and national level that may each individually gain more importance in the near future. Government policy, it is believed, can play a considerable role in facilitating entrepreneurship on a national scale. Scenarios can help map out possible changes and what effect they may have on national welfare. This paper will discuss the different effects that globalization, regionalization, Europeanization and nationalization may have on entrepreneurship in developed countries and how policy makers may positively influence entrepreneurship by means of cluster and network development, while more generally this paper will introduce scenario analysis as a tool to further define entrepreneurship behavior.
Globalization has opened a wide range of opportunities for production sectors in Third World countries like India, to become competitive and to exploit ways of enhanced growth. However, a basic requirement for such development is that these sectors increase their technological standards. The present work is a case study of the R&D effort of seven selected industrially advanced states of India, viz. Andhra Pradesh; Maharashtra; Uttar Pradesh; West Bengal; Gujarat; Tamil Nadu and Karnataka, during the period of the 1990s. The analysis bears out a systematically low R&D allocation made in the state sector over the years, which obviously constrains industrial and technological development. Further, states like Maharashtra, Karnataka and Gujarat have shown a relatively high R&D intensity in industrial sectors, as well as a high growth of R&D expenditure, which corroborates the fact that these states are experiencing a strong industrial growth, steered by a technological surge. The analysis further shows a spontaneous decline in public industrial R&D in most of these states, which is witnessing the declining role of the public sector. The analysis also reveals a pathetically low R&qmp;D effort by small-scale industries in these states, which nevertheless ought to be augmented for exacerbating the competitiveness of these industries.
This paper presents the results of a study of the ‘Urban Unorganized Manufacturing Sector' (UUMS) in India. This sector is selected because of its rising share in GDP and employment generation. The emphasis on the manufacturing sector is to enable analysis of the dynamics in this sector, especially after a decrease was observed in the growth rate of employment in the beginning of the last decade. The focus is on urban areas because it is only through urban space—which forms a web of linkages—that the changes in the international arena diffuse to the rest of the country. In this backdrop, the paper seeks to analyze the impact of changes being ushered in by the dynamic economic scenario on the UUMS and how these changes combine with regional specifications and processes. The objective of the paper is to analyze the importance of the sector in the national economy, in the present context and to examine the trends, spatial variations and growth profile. An exploration of the determinants, sources of growth and interdependencies within the sector and with the economy is undertaken to arrive at explanations for the spatial and growth dynamics and to identify whether the growth of the sector is supply driven or demand driven. Finally, an attempt is made to infer the potential of the sector in assisting the development process of the country.
This paper explores similarities and differences in mobile phone usage between subscribers from five major metropolitan cities across East Asia. Technological advances have been widely adopted by consumers throughout this region, most recognizably via the mobile platform with mobile Internet, email, video-conferencing, e-commerce, and other types of mobile phone-related services becoming critical factors in the daily lives of East Asian consumers. Those living in urban areas have benefited most from these new technologies and services, and more specifically, younger generations have adopted mobile phone-related services far faster than their older counterparts. However little research to date has explored the similarities and differences between mobile phone usage behavior of younger, urban consumers across this region. This paper presents the results of a comparative study of mobile consumer behavior of university students across five major cities including Beijing, Hong Kong, Seoul, Taipei and Tokyo. We found that the dependency of young people on mobile phone services was similar among the cities surveyed, however the specific factors influencing their usage and the communications technologies that they used varied significantly across markets.
The objective of this paper is to explore empirical evidence of industrial clustering, learning and innovative capacities in the electronics and software industry, including similarities and differences between them, in the Tehran metropolitan region. A comparison of survey results from this metropolitan region with the industrial cluster literature shows some degree of industrial clustering as evidenced by the high labor inter-firm mobility and the formation of a labor market, together with a relatively high spin-off activity from existing firms, and relatively strong horizontal relationships. However, in both clusters, there is weak evidence of local institutional thickness. The results of these findings have a number of implications for our understanding of the clustering potential of the electronics and software industrial clusters in the Tehran metropolitan region. In general, the results suggest how the sampled industrial clusters have generated some clustering advantages and how important systemic linkages with other actors really are.
Universities are increasingly seen as important players in the regional economy, among others through their contribution to the rise of new high-technology companies and mechanisms of knowledge transfer. Regional-economic development and the creation of academic research clusters are becoming more and more mutually intertwined dynamic forces. In this paper, we will offer some background observations, describe some empirical developments concerning the desired and actual growth of spin-off companies from universities, and provide some strategic policy lessons. The focus of analysis is on differences in growth rate of incubators in a comparative study across the developed world and on differences in growth rate between spin-off companies in a local study, i.e. concerning Delft University of Technology in Delft in the Netherlands. The overall conclusion is that diversity matters in many ways in a positive sense For example, diversity in stakeholders in the incubation initiative, diversity in types of target companies in incubation programs, and diversity in networks through which knowledge flows tend to enhance growth of spin-off companies.
Nowadays it has become increasingly popular to introduce new techniques for representing complex human behavior in determining the characteristics of pedestrian or car traffic. A typical technique is multi-agent simulation, developed in the frame of complexity studies. Meanwhile, in several larger cities, it has been common practice to redevelop urban functions in downtown areas in an innovative manner. If the downtown area is renewed, various visitors are attracted here causing numbers of pedestrians or car users to change rapidly and widely. Sometimes congestion is increasing in such a way that the commercial center is removed to a newly developed area. The objective of this study is to construct a behavioral model of visitors in downtown areas based on a multi-agent system. Specifically, a questionnaire survey is carried out among the people who visit the downtown area during holiday. The results are applied to construct basic rule-based behavior of an agent. The rules are focused on the relation between the visitor's behavior and the environment. Each agent acts on the map including geographical information. In addition, the change of pedestrian behavior corresponding to the spatial environment changes is also examined by use of specific data on them. Moreover, an actual behavior survey was executed simultaneously. As a result, it was found that the estimated behavior by simulation corresponded with the actual case. Using this simulation model, some scenario analyses could be examined. The future situation after redevelopment in the downtown area can be simulated on the basis of the state before the redevelopment. Finally, the possibility of application of multi-agent simulation models was provided for various types of human behavior, such as the estimation of evacuation following an earthquake disaster, the estimation of commuters' activities in rush hour and so on.
The socio-economic position of migrant groups in a globally mobile society has extensively been studied in recent years, from the perspective of their skills, language abilities, adjustment behaviour, and so forth. The present study investigates the social and economic performance of migrant workers in cities characterized by cultural diversity among various migrant groups. The question will be addressed whether these groups have a higher or lower performance on the labour market than their indigenous equals, seen from the perspective of the customers' perception and satisfaction in services. This issue calls for a careful and critical assessment, as it may also rest on an unjustified stigma. It is an intriguing research question whether migrant workers, e.g., in the service sector, are actually less client-friendly than others. How does the external world (e.g., customers) judge their societal attitude and performance ? After an extensive literature review of cultural diversity theory (in particular, organizational citizenship behaviour) and motivational theory stemming from the field of business economics, we formulate relevant hypotheses on the actual behaviour of migrant employees as seen through the eyes of systematically trained, so-called ‘mystery guests'. Next, we test hypotheses on the basis of empirical fieldwork in the service sector—notably in the retail sector—in the city of Amsterdam. Our conclusion is that the sample studied here demonstrates in general, that there is no negative attitudinal or performance bias in the behaviour of these employees. It is noteworthy however, that our findings indicate a gender bias.
Quality of life (QOL) studies typically focus either on aggregate measures of QOL variables using secondary data sources for aggregated spatial units or on primary data collected through sample surveys whereby individuals provide subjective assessments of QOL dimensions. This paper uses sample survey data collected in a 2003 survey of QOL using a spatially stratified sample design across the Brisbane-South East Queensland (SEQ) region, Australia's fastest growing metropolitan region in the ‘sun belt'. A ‘subjective-well being approach' has been adopted to explore a range of techniques for mapping inter-regional variability. Various aggregation operators—‘Max', ‘Min', ‘Average', Exponential and Maximum Entropy, are employed to develop five QOL indices based on an ‘ordered weighted average', a non-linear aggregation technique. It is shown that the quality of life across the Brisbane-SEQ region varies with substantial differences exhibited across different weighting regimes.
Most third world countries are experiencing a rapid urbanization and India is no exception. The unprecedented population growth coupled with unplanned development activities has resulted in urbanization without infrastructure facilities. Urbanization of this type generally takes place around a well-established city or in a linear form along highways. This dispersed development along highways and in rural countryside is defined as sprawl. Urban sprawl refers to a dispersed development outside urban and village centers and is associated with impacts such as loss of agricultural land, open space and ecologically sensitive habitats. Such type of sprawl is occurring around Burdwan municipality in India, particularly in areas adjacent to the arterial roads and along highways. An attempt has been made in this paper to identify sprawl both in a temporal and spatial context. A set of Survey of India Topographical sheets and satellite images has been used to picture the direction of sprawl. On the basis of this effort a detailed study was carried out in one of the villages where maximum sprawl could be observed. An attempt was made to identify the economic and social shifts in this village as a result of sprawl, particularly structural changes.
The role of urban agriculture is highly valued in both developed and developing countries. Urban agriculture is an important aspect of the wider issue of urban sustainability. However, it is considered to be a possible threat to the sustainability of cities, while at the same time it is considered to greatly contribute to sustainable urban development. In this research, sustainability of urban agriculture will be discussed through a comparative analysis of Tokyo and Shanghai by using an Internet survey method. The function of urban agriculture expected by local residents and its relationship with urban development will be clarified. Furthermore, the effects of urban agriculture on the welfare of residents will also be considered from an economic viewpoint.
The value of Indonesian sightseeing is analyzed from various different viewpoints. Conjoint Analysis and the Analytic Hierarchy Process (AHP) are used as basic tools for evaluation, where Indonesian sightseeing is divided into three travel type components: nature travel, traditional history travel, and agricultural area travel. The values calculated by ranking-type conjoint models are utilities of each travel plan which are also compared to the utilities of traveling expenses. Surveys were carried out in five countries: Japan, the United States, Netherlands, Singapore, and Indonesia. Using a personal computer, respondents first ranked nine tour plans, which were composed of three travel types as previously mentioned. After that, the respondents compared a set of photographs related to travel types for processing AHP, and they ranked the tour plans again. Nature travel appeared to be the most attractive overall, and agricultural area travel had a negative value except for the Dutch and Indonesian cases. Influences of AHP investigation revealed substantial differences between the five surveys. Agricultural area travel became more attractive after the AHP exercise for Japanese, Singaporeans, and Dutch respondents taken together. Dutch and Indonesians made an interesting change of attitudes after the AHP exercise. This fact was interpreted using the Elaboration Likelihood Model for attitudinal change in social psychology.
This study is a preliminary investigation of the nature of change in inter-regional disparities in economic and social development in India, in the light of the prevalent views in this regard across the world. Attention is particularly focused on a comparison between India's regional experience in the pre- and in the post-reform periods, with the year 1990-1991 being considered as the dividing line between the two periods. The article is divided for analytical convenience into seven parts. Part one is introductory and gives the raison d'être for this study. Part two goes on to give the scope, nature of data and methodology used in the study. Part three contains an examination of the prevalent views regarding the pattern of regional change during the process of national economic development. Parts four and five examine India's regional experience in the pre- and post-reform periods in the light of these views. The sixth part compares the regional development experience of the country between the pre- and the post-reform periods. The concluding part brings together the main findings of the study attempting also to draw some broad policy inferences.