Regional Economics
Regional economics is the study of the economic interactions between geographical regions or the factors that influence the economic development of regions. The purpose of regional economics is to analyze, explain and predict the spatial arrangements of differing economic phenomena. Regional economics helps to explain the disparities between regions and how regions can act and react to one another.
Regional economics is an interdisciplinary field of economics that takes elements from many other fields including transportation, urban economics, public finance, economic geography and more. In recent years, there has been an increasing emphasis within the field on issues such as economic and social equity, innovation policy, economic performance, green economic development and sustainability. This type of economic analysis is becoming increasingly important given the global marketplace and the increasing interconnectedness of nations and the populations therein.
Regional economics has been used to analyze the economic effects of large scale projects such as new airports, roads and seaports. It has also been used to assess the local economic effects of government policies such as taxes, trade, urban and regional development investments, as well as making decisions about large infrastructure projects. Additionally, regional economics is useful in analyzing the geographical effects of natural resources or locating new businesses or industries in certain regions.
A key role of regional economics is to assess regions with different economic opportunities and conditions, and to compare their relative attractiveness in terms of investment and development. Regional differences in economic performance, resources, population composition and other factors will affect how effectively a region can benefit from different policies or investments.
Regional economics can provide data to inform policy makers on which regions need additional resources, which regions can best respond to investment, and which areas may need assistance to remove structural economic impediments. Regional economics can also inform policy makers about the availability of an economic talent pool, industry clusters, natural resources, and environmental considerations.
By providing economic data and insights to regional decision makers, regional economics can help build a more prosperous society for all. A comprehensive understanding of regional economics is necessary for making wise decisions about the distribution of resources. Regional economics will continue to be essential for understanding the economic characteristics of a region and for maximizing the region’s economic potential.
