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The purpose of this paper is to investigate regional impact of macroeconomic and regional policy impulses, using our newly developed multi-regional computable general equilibrium (CGE) model for three, structurally distinctive Polish macro-regions.

In this study, we build an interregional social accounting matrix for Poland and use it to develop a small scale, three-region CGE model, reflecting the size of regional economies and cross-regional differences in industrial structures, while also explicitly accounting for the dynamics of main economic relationships across regions, such as interregional flows in commodities, labor and capital. The model is subsequently use to simulate regional effects of various policy impulses.

We demonstrate important cross-regional differences in the transmission mechanism of macro-level policies, which either affect regional output and its individual components (as in the case of imposing shocks to VAT or PIT rates) or are limited to the components, while preserving a rather uniform impact on output (as in the case of imposing shocks to wages). Furthermore, we contribute to the regional policy equity-efficiency trade-off debate, by illustrating quantitatively how, due to structural differences, spatially targeted expenditure measures might promote either regional convergence or aggregate output growth at the country-level.

Prior to our study, regional CGE models have not been used to simulate spatial distribution of aggregate shocks in Poland or in any other CEE country. Another originality of our study lies in comprehensive evaluation of various policy impulses, from the perspective of their impact on the respective region, spillovers to the other regions and its overall, country-level effect.

Much of extant literature on entrepreneurship ecosystems is geared toward mid- and large-size metropolitan areas, and small cities are considered disadvantageous without essential elements for the ecosystem. The purpose of this paper is to shed light on understanding how small cities can have vibrant entrepreneurship ecosystems.

This study conducted 42 semistructured interviews of entrepreneurs and supporters in small towns of Montana, USA. This study also supplemented with a survey of 178 firms.

Entrepreneurs in small cities enjoy dense support networks including experienced entrepreneurs, key business and civic leaders and elected officials. They also attend entrepreneurial events and establish connections with support organizations with a distance of 200 miles.

The cases in this paper demonstrate that small cities can have vibrant entrepreneurship ecosystems without urban diversity and agglomeration. That additionally means that we should not apply the theoretical framework developed with large urban areas to small cities and consider different models of development for small cities.

Recent evidences show that terrorism is becoming frequent in Nigeria, ranging from incessant Boko Haram activities in the North East; Independent People of Biafra (IPOB) activities in the South-East states, kidnapping and vandalizing oil pipes in the South-South, Fulani-herdsmen attacks in the Middle Belt, among others. In an attempt to tackle terrorism, the Federal Government at different times adopted military actions with little or no lasting solution. The Have and Have-nots hypothesis (Shahbaz, 2013) stresses the role of economic phenomenon in determining the causes of terrorism. It is on this note that this chapter investigates the linkages between economic growth proxy by gross domestic product per capita (GDPPC) and other fundamental variables such as inflation, unemployment, and inequality gaps, among others; and terrorism in Nigeria. We intend to know whether cointegration exists between the two constructs; and if it does, is there causality? The study employed both the autoregressive distributed lag (ARDL) and the vector error correction model (VECM) approaches to examine the existence of or otherwise a long-run relationship as well as causality among the constructs. Results reveal that a compelling cointegrating relationship exists among the variables. It is further revealed that unemployment, inequality, poverty, inflation, among others, Granger cause terrorism. It stresses that the Have-not hypothesis explained the causes of terrorism in Nigeria. The study therefore suggests that policy makers should, in order to prevent or combat terrorism, focus on improving the economy by creating job opportunities through provision of conducive environment that supports businesses and reduces inequality gaps.

Significant amount of pollution can be generated in one region but its output is used directly and indirectly for providing final goods in other areas. Pollution of an upstream area may be carried downstream and air pollution generated in one area may be diffused to other areas. An integrated interregional input‐output and linear programming model has been presented through which responsibility for cleaning pollution can be established and optimum relocation of industries can be achieved in the framework of technological and economic constraints.

While several studies in regional economics and development economics have repeatedly suggested that selected regions are capable of exerting powerful growth impulses on national growth and development, there are studies in the literature which have raised doubts about the existence of transmitting growth impulses from one region to another. The objectives of this paper are to test whether there are any significant growth‐transmission effects across Indian states and to examine whether institutional improvements induced through economic reform have improved such transmission effects. Using data from both pre‐ and post‐1991 economic reform, this study suggests that the growth impulses passing from one state to another have been limited, although it appears to have increased in the post‐reform period. What is evident from this study is that the structure of the state economies, in terms of their sectoral composition, and the quality of their human capital and infrastructure, is a relevant variable from the policy point of view in boosting the growth spillover effects from the leading to the lagging states.

The purpose of this paper is to set out the process by which a smart specialisation strategy was developed for a small, peripheral economy in the European Union, the Republic of Malta. It assesses the applicability of the approach in the context of a micro-economy with an industrial structure based on a small number of foreign direct investments and a predominance of micro-enterprises.

The paper follows an action research approach by presenting as a case study the process by which the strategy for Malta was assessed and developed through successive rounds of engagement with business and other actors with the application of scenarios and other prioritisation approaches to facilitate its development. An initial consultation with 20 public sector and representative organisations was followed by a general business workshop and 21 sectoral focus groups.

Lack of critical mass can be mitigated by maximising the generic use of available skills and competences. Given the higher vulnerability to external shock in micro-economies, strategies need to have a high degree of flexibility and adaptability. Greater internationalisation provides the main response to peripherality.

The approach can be applied more generally for micro-economies and in some aspects to other countries or regions lacking critical mass in research and innovation assets or facing peripherality.

The smart specialisation approach had not been applied in these circumstances and hence the findings allowed the concept to be extended and adapted to deal with the issues raised.

This paper aims to draw on a number of indicators of innovation to evaluate and compare two central regions – Hubei and Hunan – with three leading regions of China – Beijing, Shanghai and Guangdong.

The paper focuses on absorptive capacity at the level of domestic regions of China, using data on R&D expenditures, human resources in higher education and in high-tech industries. The paper uses social network analysis to investigate innovation networks based on patents from the SIPO and USPTO.

Results indicate that, in Hubei and Hunan, R&D expenditures do not translate into as many innovative outputs as in the coastal and Southern regions. Moreover, high-tech industries contribute towards a relatively low proportion of the regional outputs of Hubei and Hunan, where especially the electronics industry is very poorly represented. Findings also suggest that Hubei and Hunan have a relatively limited access to foreign technologies embedded in ties with international partners. By contrast, the more advanced three regions tend to develop collaborative activities across national boundaries to a higher extent than across regional boundaries.

The analysis of China's regional innovation system has implications for research on national innovation systems. Policy-makers can benefit from the comparative analysis of regions.

The study is primarily exploratory, and the findings contribute to the literature and ongoing discussion on data sources and methods for the analysis of regional innovation.

This study focuses on the impact of foreign direct investment (FDI) on local firms in host economies. We examine both backward and forward linkages and their effects on domestic firms. Data collection was undertaken over a three-year period whereby qualitative in-depth interviews were carried out with senior managers in UK headquarters, subsidiaries and ‘linked’ local firms in order to facilitate a multi-perspective approach to examining this topic. Results indicate that linkages do exist, contrary to earlier belief. The main factors which facilitate linkage formation were found to be subsidiary-related variables, mainly the mode of entry into the local market, subsidiary autonomy, level of embeddedness and subsidiary role. It was also found that government regulation and policy had some impact on the formation of linkages. Over time the impact on local firms was found to be positive with increased employment, productivity and significant upgrading of skills and competencies. The key contribution of this chapter is to extend the literature on linkages to consider services while developing a conceptual framework in this area. Overall, our study confirms the importance of the subsidiary in linkage formation and also shows how the externalities occurring from linkage formation in the service sector may benefit local firms and subsequently aid local economic development as a whole.