Regional Development and Entrepreneurship - EB3S14 5472 words - 11 January 2013
I.Regional economic performance measurement and Wales’ performances over the last years5
1.GDP per capita and GVA per capita5
a)GDP per Capita5
a)GVA per Capita6
2.Unemployment rate and household wealth8
a)General unemployment rate8
b)Household wealth and gender disparities11
3.Production and exports13
a)Production and manufacturing13
c)Higher education and skills18
a)State of clusters in Wales21
II.The role and impact of Foreign Direct Investment (FDI) in general and its consequences in the Welsh economy24
1.The role of FDI24
2.The different forms of FDI24
a)Definitions and classifications24
b)Advantages and drawbacks25
3.Why foreign companies invest abroad and why in a specific region rather than another?26
a)Factors that decide firms to invest abroad26
b)Decision to invest in one region rather than another26
4. Consequences of FDI in the Welsh economy28
b) The example of Tata Steel31
III.The policy shift in Wales through a more endogenous approach, with particular relevance to the role of entrepreneurship33
1.The endogenous approach according to Schumpeter and contemporary extensions33
a)The role of the entrepreneur according to Schumpeter33
b)The contemporary extensions: theories of endogenous growth.33
2.Welsh support for entrepreneurs: an endogenous approach34
3.The consequences brought by these measures35
The period going from the middle to the 18th century in the middle of the 19th century, had a revolutionary effect on the economy, the social structure and the political future of Wales. In thirty years, the small towns were transformed into great industrial centres among most important of the world. Welsh coal fed the national marines of the whole world and Welsh iron was essential with the exploitation of the growth of the international railroads.
Around 1913, more than 250,000 minors produced more than 57 thousand tons of coal and Cardiff had become the largest wearing of coal of the world.
The contemporary crisis of the 1970s and 1980s did not spare Wales, it sealed the decline growing of the coal, and considerably weakened the iron and steel hopes .In May 1984, in seven of the eight Welsh counties, unemployment exceeded 14% of the working population, culminating to 17% in Clwyd in the North-West, and to 16.8% in Mid Glamorgan in the South.
Since the decline of coal, the Welsh economy has come under severe distress. First this analysis will deal with how regional economic performance and competitiveness is measured and how Wales has performed in relation to some criteria. Then it will be about the role and impact of Foreign Direct Investment (FDI) in general and its consequences in the Welsh economy. Finally, this report will be about the policy shift in Wales through a more endogenous approach, with particular relevance to the role of entrepreneurship.
I. Regional economic performance measurement and Wales’ performances over the last years
Regional economic performance is measured via its competitiveness. A competitive region can be defined as an attractive region which is able to produce goods and services for international markets. Moreover it must maintain high and sustainable levels of income and employment. In this part we will see that many factors are related to the economic performance of a country.
1. GDP per capita and GVA per capita
GDP is an economic indicator used to measure production in a country. It represents the total value of the...