Localisation, globalisation, et action publique

In a globalised world, firms are looking for the best place to produce goods and services. Local governments, on the other hand, are looking to attract these firms and associated jobs on their territory. This leads to the outsourcing and relocation phenomena that are the most visible aspects of globalisation. However, it would be dangerous to consider that competition amongst geographical regions is a simple struggle for a larger share of activity. Regional development depends not only on the coherence and efficiency of local relationships that may render a location more attractive than others, but also on the coherence and efficiency of the cooperative and competitive relations that take place between regions themselves. Thus, what is at stake is less the identification of local advantages than showing how and why local performance depends on both on the agglomeration of activity and globalisation of trade. Hence the goal that public authorities should pursue is less the promotion of fiscal or social advantages aimed at reducing unit costs than the fostering of efficient markets and firm cooperation. The credibility of such public intervention also depends on the size of the local region and the degree of coordination between regions. JEL classification: R11, R12, R58.