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The Sustainable Growth of Regional Economies: Targeted Regulation vs. Market Auto-Regulation

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  • Ivana Kraftová
  • Jiří Kraft
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    Abstract

    New approaches are being searched for to assess regional policy in connection with the specification of a new paradigm of regional development. The article pays attention to the assurance of a sustainable growth rate of economies in Czech regions. The methodological base of the solution is a thesis on the analogy between enterprises and regions as relatively open socio-economic systems with a function of the welfare maximisation. The data from 2002-2006 are analysed. The oscillation around the value "1" occurs with inter-annually in 10 regions from 14; the inter-annual oscillation is corrupted in 3 cases, when the trend continues in sequence, even though with other intensity. On the one hand, it is necessary consider all factors influencing regional policy tools; on the other hand it is also necessary to correctly consider the self-regulating elements effecting regions.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Politická ekonomie.

    Volume (Year): 2009 (2009)
    Issue (Month): 6 ()
    Pages: 769-791

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    Handle: RePEc:prg:jnlpol:v:2009:y:2009:i:6:id:709:p:769-791

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    Related research

    Keywords: sustainable growth rate; regional policy; region; market regulation; gross domestic product; formation of fixed tangible capital;

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    1. Scott L. Baier & Gerald P. Dwyer, Jr. & Robert Tamura, 2002. "How important are capital and total factor productivity for economic growth?," Working Paper 2002-2, Federal Reserve Bank of Atlanta.
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