Renewing the theory of economic base: a new approach to measure territorial development

Magali Talandier ()
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Magali Talandier: PACTE - Pacte, Laboratoire de sciences sociales - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]

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Abstract: Ten years ago, we developed a new approach to the theory of economic base in France (Talandier, Davezies, 2009 ; Talandier, 2012). This new approach measures the flow of revenues in different localities. We consider four strands of revenue. The first is linked to exports (like the classic export base). The second is linked to the residential economy. We proposed this term to include retirement pensions, the earnings of resident commuters and income from tourism. The third is the salaries of public servants, and the fourth includes the payments of social and health benefits. The calculations show that the first economic drivers for local areas is the residential economy. In France, the revenues account for 40% of the economic base. Of course, this varies from one area to another and explain a part of the differents level of economic development. This method offer a new approach ton consider the local economy and to develop new local strategies, and based on these results, many local governments have changed their politics of local economic development in France. Many researchers have used our model and our method in different countries in Europe (Swisterland, Belgium, Portugal...). More recently, some NGOs have applied this concept in the southern countries (in Africa and South-America). However, I think that the model cannot be applied in the same way. It coul be adapted to each context. During the congress, I would like to present the European method and results. And I would like to discuss the opportunity to develop this model in another context, like New Zealand.

Date: 2019-02-11
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Published in Urban and Rural Wellbeing, First Nations Economies and Global Value Chains for Regional Sustainability, Professor Paul Dalziel (Lincoln University) Dr John Reid (University of Canterbury) Professor Etienne Nel (University of Otago) for the Regional Studies Association, Feb 2019, Christchurch, New Zealand

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