Location Attractiveness of Smaller Areas: Do They Use Contemporary Trends in Economic Geography? (CROSBI ID 152422)
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Borozan, Đula ; Barković, Ivana
engleski
Location Attractiveness of Smaller Areas: Do They Use Contemporary Trends in Economic Geography?
Within the framework of the new economic geography theory and current trends in the spatial organization of economic activities, the attractive business location is becoming ever more important in increasing region’ s competitiveness, a concept that is increasingly cited as a prerequisite for regional growth and development. This paper is discussing the ability of a region to attract business activities, particularly big firms due to a wide range of benefits they generate to an area. Following the (Croatian) trend of big firms moving to smaller areas due to the package of benefits they offer to firms in terms of specific business environment, available and adequate labor force and doing business with lower costs, the paper analyzes and discusses the case of Osijek-Baranja County (OBC) in Croatia and delineates failures in policies of local and regional authorities to make the OBC more attractive business location, thus ensuring its development and long-term prosperity. The paper concludes with policy suggestions focused on quality improvement of business environment, strengthening of entrepreneurial capacities and creating more dynamizing entrepreneurial activities, which have been inter alia identified as crucial attractors of (big) firms.
Location Attractiveness; the Osijek-Baranja County; New Economic Geography; Regional Imbalance; Local Communities
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