On the concept of territorial competitiveness: sound or misleading?
In a globalising economy, territories and not just firms increasingly find themselves in competition with each other. In fact, differently from the case of countries, cities and regions compete, on the international market for goods and production factors, on the basis of an absolute advantage principle, and not of a comparative advantage principle; this means that no efficient, automatic mechanism like currency devaluation or prompt flexibility of wages and prices - may grant each territory some role in the inter-national division of labour, whatever its relative performance. Competitiveness of territories emerges as a central issue, in order to secure employment stability, benefits from external integration, continuing growth of local wellbeing and wealth. The arguments put forward by Paul Krugman, defining the concept of competitiveness wrong and misleading, cannot be accepted in a territorial 'regional and urban' context.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- A. P. Thirlwall, 2007. "Regional Problems are "Balance-of-Payments" Problems," Regional Studies, Taylor & Francis Journals, vol. 41(sup1), pages 89-95.
- Kaldor, Nicholas, 1970. "The Case for Regional Policies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 17(3), pages 337-348, November.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa02p518. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.