Exploration of Localness in the Context of Economic Base: Accessing Evidence From Greek Prefectures

Abstract

This paper explores the localness of Greek prefectures according to the methodological approach of economic base and, specifically, the minimum requirements technique, which leads to the estimation of a localness index for each group of prefectures of similar population size. Hence, through the definition of the types of areas that enhance their localness, the determination of the spatial pattern and the causes of these changes could be better investigated. According to the results of the research, a growing localness in all groups of prefectures during the period 2000–2009 has emerged. Localness seems high in a group with the highest population and largest urban concentrations, enhancing their ability to be largely self‐powered locally. Localness is high in the smallest group too, which is characterized by the pattern of integrated spatial development. Thus, without underestimating the importance of exports and imports, it makes more sense to look at localness and extroversion together in order to achieve greater development.

Changes in the functional structure of small towns in the least developed regions of Poland

“…The impulse, the source of which is the exogenous sector, activates the multiplier mechanism, leading to the development of endogenous activities and thus the development of the entire city (Sokołowski, 2008). Despite some reservations about the correctness of selected assumptions and theses put in the theory about the urban economic base - Krikelas (1992) makes an exhaustive discussion in their historical perspective -and its validity in the conditions of the ongoing transformation of the world's economy towards knowledge-driven economy (Christofakis & Gkouzos, 2014;Markusen, 2007;Rutland & O'Hagan, 2007) in the literature on economic geography, one can come across the view that there are only two proven theories comprehensively explaining the regularities and dependencies of the functional development of cities -the theory of central places and the economic base theory (Walkiewicz, 2006).…”

“…Moreover, this structure is one of the determinants as well as the measures of the level of economic growth. Nowadays, the fastest-growing urban centres include those in which the production structure is dominated by market services and high-end industry (Guan et al, 2018;Christofakis & Gkouzos, 2014). This puts large cities in a privileged position because they have greater potential in terms of human capital, technical and social infrastructure and other soft location factors that are particularly desirable by enterprises operating in the most technologically advanced industries.…”

“…It should also be emphasized that service enterprises, in comparison with industrial ones, develop stronger economic ties with other local entities, increasing the cohesion of regional economies, which also contributes to the development of social capital (Christofakis & Gkouzos, 2014). That is why the dominance of market services among the functions performed by a city might be seen as stimuli for economic growth.…”

Ewolucja bazy ekonomicznej małych miast wybranych województw

“…Wynika to faktu, że w porównaniu z produkcją przemysłową, usługi charakteryzują się wyższą wartością dodaną, w związku z czym ich rozwój generuje silniejsze impulsy rozwojowe dla całej gospodarki miejskiej. Ponadto przedsiębiorstwa usługowe, te działające w sferze usług zarówno rynkowych, jak i nierynkowych, są znacznie silniej powiązane z lokalną gospodarką [Christofakis, Gkouzos, 2014].…”

The Importance of Integrating Supply‐Side Factors in Economic Base Models

“…From an empirical point of view, they recommended continuing to stimulate growth by external revenues but also limiting leaks by substituting external purchases by local manufacturing or provisions of goods and services (p. 182). Christofakis and Gkouzos () used the same index L as Rutland and O'Hagan () to measure the local character of employment catchment areas for all Greek prefectures between 2000 and 2009. For Canadian cities, the index increased for all size categories.…”