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Industrial revolution and urbanization
Industrial revolution and urbanization
Role of industrial revolution in the emergence of urban life
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Regional Development theories, overview of the main concepts from 17-20th century The urbanization and the ageing of the population set a new challenge for most of the local governments in Europe and across the world. The challenge consists of not only the public service provision in the situation, where the budgets are decreasing, but also the promotion of business development. Of course, the local government’s public service provision quality is one of the components of the ability to attract new residents, investors, tourists and businesses. With the provision of good living and business conditions, the local governments try to attract labour and capital, which could be called as local public goods. Thanks to the fact that people are moving to capital and bigger centres (regions), there is also a bigger concentration of businesses in these regions. Therefore, for the local governments outside the capital and central governments who are interested in balanced economic development across the country, it is necessary to think how to promote economic development in those regions which do not have very good preconditions for attracting labour and capital. Otherwise, those regions lose the necessary finance to invest in infrastructure and human capital, hire the best specialists, develop businesses etc. In this literature overview, I try to find the theories of regional development through different time-periods. Then it is possible to see how the theories have explained the dynamics of regional development, which were the main factors to make the difference between regions and their development. There is a literature about the reasons how the differences of business development across regions have emerged. For example, there are two... ... middle of paper ... ...s, which concentrate only on the influences within the region, and there are others, which add broader overview of different factors outside the region. The regional development theory could not be separated from the main concepts introduced by Karl Marx, or the theories, which explain overall economic growth of businesses. At the beginning of emerging of the regional development theories, at the end of 19th century, the theories tried to show how the businesses choose their location and how the markets emerged, which lead to the regional disparities. Now the theories try to add concepts that are more dynamic than static. In addition, new waves of regional development theory are now seen, these are led by the work of Paul Krugman in which he tries to add more macroeconomic, mathematical approach and summarizing the previous works of (regional) economic theorists.