Title: THEORETICAL ASPECTS OF LOCAL ECONOMIC DEVELOPMENT IN RURAL AREAS: A LITERATURE REVIEW
Abstract: There are 5 planning regions (which will appoint regional development centers), 9 cities with status of national importance, and 119 municipal units altogether in Latvia. Lately the regional planning includes the idea of polycentric development with focus on regional development centers. The regional development strategies have been elaborated and development strategies for local governments are either elaborated as well or in process of elaboration. Socio-economic indicators show that rural territories differ from urban ones (suburban areas and area around capital Riga) in terms of economic development level. In case of Latvia rural economic conditions are very diverse comparing to urban or suburban territories. Latest internal population migration trends are oriented from rural territories towards urban or suburban ones. There is a trend that capable workforce diminishes in rural areas. The territory of rural municipalities’ is cover more than half from State’s territory, but in terms of total employment they form only 19%. Sustainable Development Strategy of Latvia until 2030 suggests the Latvia’s main capital is people. The diminishing workforce and lower development level in rural territories brings forward issues concerning the policy goals for the development of rural communities. Purpose. The aim of this article is to provide conceptual framework for evaluating and diagnosing a potential of local economic development. Design/methodology/approach. Author presents thematic state-of-the-art literature review both on economic development and economic development from local perspective. Author used peer reviewed scientific articles published by SAGE, EMERALD, and Cambridge Journals Online. The latter scientific discussions on local development challenges are highlighted. By methodological approach focus is kept on methods used by other researchers for evaluating and diagnosing a potential of local economic development. Findings. Research identifies economic and non-economic factors defining the outcomes of local economic development perspectives and identifies questions for further research and discussion.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: review
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