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Determinant Factors of Economic Development and Local Economy: Theoretical Concepts in Retrospect

In: Two Centuries of Local Autonomy

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  • Karl-Heinz Schmidt

    (University of Paderborn)

Abstract

The prognoses of urban growth and agglomeration of population, investment and economic activities demonstrate the crucial question of regional economic development and regional policy: Is “local autonomy” of cities and rural communities – as it was demanded 200 years ago in Prussia – a realistic objective even today? The following paper turns to the historical background of this question. It contains three sections. Following the introduction, the first section reminds of the objectives and basic structure of the “Stein-Hardenberg-Reforms” in Prussia 1807/1808. The second section refers to comments of different authors on the Prussian reforms and on the determinant factors of the economic development of cities. Also, the development of urban economics and of regional economic growth and networks will be considered. The third section turns to the reorganization of public finance on the community level. Again, the problem of “local autonomy” will be pointed out – herewith regarding the new political and economic framework conditions: globalization and expanding urbanization. A summarizing overview of determinant factors of regional economic development and local economy will close the paper.

Suggested Citation

  • Karl-Heinz Schmidt, 2012. "Determinant Factors of Economic Development and Local Economy: Theoretical Concepts in Retrospect," The European Heritage in Economics and the Social Sciences, in: Jürgen Georg Backhaus (ed.), Two Centuries of Local Autonomy, chapter 0, pages 13-28, Springer.
  • Handle: RePEc:spr:euhchp:978-1-4614-0293-0_3
    DOI: 10.1007/978-1-4614-0293-0_3
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