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On the analytical framework of the regional competitiveness in the global perspective research

Author: ZhangZhiHuaˇˇLiuShuHua From: www.yourpaper.net Posted: 2009-08-15 17:55:48 Read:
Paper Keywords: regional competitiveness; competitive advantage; comparative advantage; agglomeration economies
Abstract: Competitiveness creed to attract a large number of admirers and followers, but the meaning of the regional competitiveness is very complex and there is a lot of controversy. On the basis of the analytical framework of the feasibility of the regional competitiveness of the full argument in this paper to the factor endowment system as a starting point, the release of the potential benefits of a theoretical fulcrum, gathering economic benefits for the indirect transfer mechanism, the competitive advantage on the industry level and national levels on the comparative advantages are combined to construct the analytical framework of a regional competitiveness. This analytical framework can provide a perspective for in-depth and comprehensive understanding of the regional competitiveness and to develop a rational regional economic policy.

Now generally accepted that regional resurrection is the main locus of the organization and management of social wealth, the enhancement of regional competitiveness is one of the manifestations of regional regeneration. Since the writings of Michael Porter's "Competitive Advantage of Nations" (1990), regional competitiveness not only of academic interest and debate economic policy documents are still different levels of government departments has been mentioned, is increasingly becoming policy the main topics developed to assess a country's competitiveness and to create conditions to enhance the competitiveness has become an important task of national government agencies.
Of course, the concern on the competitive not limited to it is a macroeconomic phenomenon, it also has a very important meaning in different geographical level. The main determinant factor determining regional competitiveness and create the environment for these factors, so as to enhance the performance of regional competitiveness has caused great concern for all levels of government. The rulers of the region focused on building regional competitiveness indicators to measure the relative position when compared with other regional and tried to enhance the region's competitiveness through the development of effective strategies and to take positive action. The acceleration of economic globalization and integration, the region is facing increasingly intense competitive pressure, encourage people to think in a regional context the development of what kind of policy responses to this challenge, the decision-making to enhance the competitiveness of the region as the main target, and tend to trade performance and corporate productivity (or industry) combined competitive single entity.

Regional competitiveness

On the competitiveness of many studies, especially for national competitive advantage, most of the analysis of the main starting point is Porter's "Diamond Model", which contains four basic elements: production factor conditions, demand conditions, related and supporting industry and the strategic structure and competition within the industry, but also two auxiliary elements, government and opportunities and competitive advantage is actually in the study of the nature of the above factors and their interactions. Taking into account the level of development and growth of the GDP to define the competitiveness of many problems, this model beyond the per capita GDP and unemployment rate as a measure of the limitations of the tool is very useful when applied to the study of the competitiveness of the national level. But the current study the problems tend to accept it, rather than a critical understanding of the "diamond model" is only an analytical framework for the national level competitive advantage.
In view of the different geographical levels, geographic clustering effect the people questioned in the study of the competitiveness of the country is the best division units. Regional competitiveness can be understood in a region's ability to win in the competition with other regional countries, especially the international level, including occupation of most of the export market share, or to attract the majority of the capital and labor. In the sub-national level, regional and urban characteristics in the domestic competition will emerge, and thus strengthen the country's competitive advantage.

(2) the feasibility of the establishment of the framework of the regional competitiveness analysis

The analytical framework for the establishment of regional competitiveness need to take full account of the different geographical levels. In price and non-price competition to their output, so on competitiveness at the industry level can easily be understood. Price and non-price factors by location, cost, these costs can be direct or indirect. Direct costs include rent, labor costs and resource costs, a business professional level is lower, the greater the likely cost to pay. Indirect costs for enterprises is external, so there is the emergence of external effects, external economies of scale, economies of scope and enterprises use their location will determine in a special location on the competitiveness of enterprises. Advantage on the competitiveness of the industry level collection and indirect costs that together constitute the urban competitiveness, it is the centralization and unification of these two types of factors in space before deciding on the internal consistency of the urban competitiveness. It is because of this reason, the meaning of the regional competitiveness compared to the concept of urban competitiveness can respond to a variety of questions on a regional scale.
Regional competitiveness is neither a simple collection of all enterprise strength, nor is the country's economic weight decomposition, it can be seen as the cumulative result of a number of factors, these factors include traditional factors such as labor market conditions and transportation costs, but also involves the firm size and the ability to innovate. Area compete in what way? Regional competition is mainly reflected in the following three conditions: (1) The investment by attracting foreign capital, private equity and public capital; (2) the area in order to obtain labor resources to attract skilled employees, entrepreneurs and create force workers in the local labor market and shaping the environment for innovation and access to new technologies; (3) region by attracting knowledge and innovation activities. The above ideas can also be explained from the new the three theoretical point of view of the classical theory, the theory of increasing returns and endogenous growth theory.
A core issue in the debate on the country's competitiveness, the role of the exchange rate and balance of payments. The balance of payments on the regional level is very important for regional competitiveness and non-price competition between regions is equally important to understand the trade flows. If the prices of products and services is determined at the national level or in an imperfectly competitive environment, changes in relative prices in the area and will not bring the increase in the national interest, trying by lowering interest rates, depreciation of the currency, subsidies and trade barriers and other means to change the relative prices of the recession area to regain competitiveness efforts but in vain. Enhance the competitiveness is determined by the localization advantages, mainly depends on the non-price and non-trade considerations, such as system embeddedness, power structure, the degree of cultural integration and demonstration of benefits, and so on. These advantages can be used as part of the external economic zone grab and goal to create local advantages, establish affect an integral part of the regional potential competitiveness of industry or sector. Porter pointed out the importance of industry clustering and trade clustering and its spillover effects on regional economic performance, the factors of production owned by the industrial clustering is the basis of the source of competitive advantage. In fact, the relative productivity of the trade clustering can replace the relative productivity of the industry to become one of the standard measure of national competitiveness.

Regional competitiveness framework and its internal analysis of the relationship

In the context of globalization, the competition among countries is increasingly reflected in the country's secondary level, the region as a basic unit division of the inevitability of its time. I believe that the available theory of comparative advantage, Porter's competitive advantage ideas and potential benefits of release to look into the different levels of competitiveness, regional indirect transmission mechanism through agglomeration economies on the comparative advantage of the competitive advantage on the national level in the industry level up and placed in a framework of a comprehensive understanding of the inner meaning of the regional competitiveness.
3.1 theory of comparative advantage in international trade laid a logical basis. In the field of economics, the concept of comparative advantage early mention (rooted in Ricardo's theory of comparative advantage and Heckscher - Ohlin factor endowment theory), and research on competitiveness or competitive advantage later. The theory of comparative advantage that a country through specialized production can benefit from trade, even if it does not have an absolute advantage, trade can also be seen as a positive sum game. According to the theory of comparative advantage, terms of trade reflects each country differences in factor endowments, States may use the country's most abundant factor of production the production of goods, and gain a competitive advantage through international trade, regional or city initial factor endowments conditions of and technical knowledge is the basis for the formation of the national competitive advantage. That the guiding role of the theory of comparative advantage at the national level is very obvious.
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