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Lagging-behind Areas as a Challenge to the Regional Development Strategy: What Insights can New and Evolutionary Economic Geography Offer?

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  • Seyed Peyman Asadi
  • Ahmad Jafari Samimi

Abstract

Lagging-behind areas, as an example of convergence failure within a country, have attracted the attention of many researchers who try to adopt appropriate policies and strategies to overcome the problem of low growth paths. The current study concentrates on policy recommendations in the framework of New Economic Geography and Evolutionary Economic Geography for the lagging regions. The agglomerated industry, as a fundamental element of the new economic geography, has limited the potentials of policy prescriptions for lagging-behind areas. Constructing regional advantages, as a policy in evolutionary economic geography, has helped diversifying the policy options for the lagging-behind regions. However, this approach is faced with multi-level challenges in lagging-behind areas including the lack of critical mass in the case of low related variety and the knowledge base gap between the lagging and prosperous regions. Therefore, the policy should provide a structure for the simulation of external knowledge links and differentiate the nature of various related industries if it is going to be a basis for constructing regional advantages.

Suggested Citation

  • Seyed Peyman Asadi & Ahmad Jafari Samimi, 2019. "Lagging-behind Areas as a Challenge to the Regional Development Strategy: What Insights can New and Evolutionary Economic Geography Offer?," Papers in Evolutionary Economic Geography (PEEG) 1923, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2019.
    • Handle: RePEc:egu:wpaper:1923
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    More about this item

    Keywords

    Lagging-behind areas; development strategy; New Economic geography; Evolutionary Economic Geography;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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