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Reversing the rural race to the bottom: an evolutionary model of neo-endogenous rural development

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  • Petrick, Martin

Abstract

The article contributes to the understanding of neo-endogenous rural development from the perspective of evolutionary game theory. Rural development is modelled as the increasing realisation over time of gains from interaction by rural stakeholders. The model exhibits two dynamically stable equilibria, which depict declining and prospering regions. An external government authority stimulates neo-endogenous rural development by helping decentralised actors to coordinate on the superior of the two equilibria. This intervention may be possible and desirable without giving up the autonomy of local decision makers. Because initial conditions matter, outcomes cannot be planned or engineered from the outside.

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  • Petrick, Martin, 2013. "Reversing the rural race to the bottom: an evolutionary model of neo-endogenous rural development," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 40(4), pages 707-735.
    • Handle: RePEc:zbw:espost:155471
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    1. Gunther Maier, 2011. "History, Spatial Structure, and Regional Growth: Lessons for Policy Making," Advances in Spatial Science, in: Börje Johansson & Charlie Karlsson & Roger R. Stough (ed.), Theories of Endogenous Regional Growth, chapter 6, pages 111-134, Springer.
    2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    3. Martin Petrick & Ingo Pies, 2007. "In search for rules that secure gains from cooperation: the heuristic value of social dilemmas for normative institutional economics," European Journal of Law and Economics, Springer, vol. 23(3), pages 251-271, June.
    4. Solow, Robert M., 2000. "Growth Theory: An Exposition," OUP Catalogue, Oxford University Press, edition 2, number 9780195109030.
    5. Börje Johansson & Charlie Karlsson & Roger R. Stough (ed.), 2001. "Theories of Endogenous Regional Growth," Advances in Spatial Science, Springer, number 978-3-642-59570-7.
    6. Christian Schubert, 2005. "Hayek and the Evolution of Designed Institutions: A Critical Assessment," Chapters, in: Jürgen G. Backhaus (ed.), Entrepreneurship, Money and Coordination, chapter 4, Edward Elgar Publishing.
    7. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
    8. Ron Boschma & Ron Martin, 2010. "The Aims and Scope of Evolutionary Economic Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 1, Edward Elgar Publishing.
    9. Ron Boschma & Ron Martin (ed.), 2010. "The Handbook of Evolutionary Economic Geography," Books, Edward Elgar Publishing, number 12864.
    10. Robert Sugden, 1993. "Normative judgments and spontaneous order: The contractarian element in Hayek's thought," Constitutional Political Economy, Springer, vol. 4(3), pages 393-424, September.
    11. Petrick, Martin, 2008. "The co-evolution semantics and policy paradigms: 50 years of Europe's common agricultural policy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 43(4), pages 246-252.
    12. Petrick, Martin & Gramzow, Andreas, 2012. "Harnessing Communities, Markets and the State for Public Goods Provision: Evidence from Post-Socialist Rural Poland," World Development, Elsevier, vol. 40(11), pages 2342-2354.
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    Cited by:

    1. Amirova, Iroda & Petrick, Martin & Djanibekov, Nodir, 2022. "Community, state and market: Understanding historical water governance evolution in Central Asia," IAMO Discussion Papers 200, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    2. Marek Furmankiewicz & Adrian Campbell, 2019. "From Single-Use Community Facilities Support to Integrated Sustainable Development: The Aims of Inter-Municipal Cooperation in Poland, 1990–2018," Sustainability, MDPI, vol. 11(21), pages 1-21, October.
    3. repec:zbw:iamodp:327298 is not listed on IDEAS
    4. Pappalardo Gioacchino & Sisto Roberta & Pecorino Biagio, 2018. "Is the Partnership Governance Able to Promote Endogenous Rural Development? A Preliminary Assessment Under the Adaptive Co-Management Approach," European Countryside, Sciendo, vol. 10(4), pages 543-565, December.
    5. Goran RAJOVIC & Jelisavka BULATOVIC, 2015. "Nationalist Movements in the Balkans and Ottoman Government," Journal of Economic and Social Thought, KSP Journals, vol. 2(1), pages 16-35, March.
    6. Hennebry Barraí & Stryjakiewicz Tadeusz, 2020. "Classification of Structurally Weak Rural Regions: Application of a Rural Development Index for Austria and Portugal," Quaestiones Geographicae, Sciendo, vol. 39(2), pages 5-14, June.

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    More about this item

    Keywords

    rural governance; neo-endogenous rural development; evolutionary game theory; collective action;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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