Trade: Dissipating or developing regions?

McGovern, Mark F. (2004) Trade: Dissipating or developing regions? In ANZRAI Conference: The Regional Development Cocktail, Shaken not Stirred, 28 September - 1 October 2004, Wollongong, Australia.


Trade can have a variety of impacts on regions. Common idealisations such as the theory of comparative advantage portray that trade may be mutually advantageous. More recent idealisations such as competitive advantage promote trade that is assumed at least singularly advantageous, for the exporter. Yet the deeper issue of how trade impacts affect regional development is little addressed in theory, policy or practice as this paper demonstrates.

Trade-oriented resource allocations predispose a region to external dependence. This brings various costs, risks and rewards which will somehow need to be balanced within the region. Nations containing heterogenous regions have particular issues that will need to be addressed if inter-regional coherence and intra-regional resilience are to be developed or maintained.

A theme, developed by Thirlwall and others, is that regional problems are balance of payments problems. Such a theme will be seen to provide useful insights into the current situations of Australian regions. Trade and the balances created help dissipate resources and impede development in some regions. They help advance others. More informed understanding of trade impacts by those in regions may allow for more effective development of regional industries, businesses and communities.

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ID Code: 1169
Item Type: Conference Paper
Refereed: Yes
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Logistics and Supply Chain Management (150309)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2004 (please consult author)
Deposited On: 04 May 2005 00:00
Last Modified: 29 Feb 2012 13:09

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