From the concept of economic development to local economic development

Abstract

Growth in Gross domestic product or per capita income is a necessary element of economic development but not sufficient one. This separates economic growth from economic development. These days the Human development index is also taken as the most important measure for economic development. However with the failure of trickle-down theory, economists started looking for other dimensions related to developmental economics. Local economic development shifts the focus both in terms of actors and activities. It demands human, institutional and physical resources to be used at locally to develop any particular region. Although many theories have tried to explain local economic development, there is no comprehensive theory has come up. Blakely in his work has tried to synthesize all the relevant theories. This article also provides two examples related to both these policies to highlight the importance of local development.