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Towards a paradigm of proximity economy for competitive and resilient cities and territories

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  • Tricarico, Luca
  • Hausemer, Pierre
  • Gorman, Nessa
  • Squillante, Francesca

Abstract

This paper explores the concept of the Proximity Economy, a human-centered model focused on short value chains and social interactions within local contexts, as a strategic response to global challenges like climate change, supply chain disruptions, and the twin green and digital transitions. Amid ongoing crises, e.g., pandemic, economic, geopolitical, and environmental, reconceptualizing economic development paradigms is crucial for fostering resilient and sustainable solutions. The Proximity Economy integrates local production, distribution, and consumption, supporting sustainable innovation and the competitiveness of local enterprises. It aligns with the European Union’s industrial strategy and Sustainable Development Goals, such as climate action (SDG 13) and reducing inequalities (SDG 10). This paper reviews the socio-economic impacts of the Proximity Economy, considering its connections with the circular and social economies, and identifies relevant policies for its promotion at the European, national, and local levels. Through sectoral analysis and examples, the paper provides a framework for evaluating the economic, environmental, and social outcomes of this model, offering recommendations for its future development and implementation.

Suggested Citation

  • Tricarico, Luca & Hausemer, Pierre & Gorman, Nessa & Squillante, Francesca, 2025. "Towards a paradigm of proximity economy for competitive and resilient cities and territories," LSE Research Online Documents on Economics 128633, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:128633
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    File URL: https://researchonline.lse.ac.uk/id/eprint/128633/
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    References listed on IDEAS

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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