A Cooperative Regional Economic System for Sustainable Resilience Policy

Abstract

This paper examines a regional economic model within the framework of welfare economics under various economic and spatial constraints. These constraints include decreased local budgets, limited conditions for markets for goods and services, markets for factors of production, public goods, and fewer opportunities of agglomeration economies. In many areas of a given region, such constraints can be more evident, partly because of external forces of severe economic competition among different regions and countries. Unless effective planning and policy remedies are considered, these regions may cause obstacles to pursuing stable and sustainable growth and development. This paper presents the sustainable resilience policy of a generalised framework of smart planning strategy that uses an intra- and inter-regionally coordinated cooperative networking system. The regional economic model used in this paper reveals that the system may work sufficiently only if the scale and scope of coordination are optimally organised because of the presence of the barriers of physical distance; complexity of contracts; and other economic, spatial, and administrative restrictions. Our scenario enables the region not only to passively receive incoming external economies but also to actively discharge the spill-over effect to others, which forces involved economic agents to cooperate rather than compete.