Modelling regional economic development
Purpose - The central task is to define the ties, existing between economic dimensions, which can be expressed in specific relations that require special attention during projecting to ensure they are not disrupted. The development of a computer-based mathematical and economic model makes it possible to constantly monitor the condition of the entire economy of a given region, both from a global aspect, as well as by its individual sectors of activities. Design/methodology/approach - Economics employs a number of scientific disciplines and their methods, making this approach both multidisciplinary and interdisciplinary. Unlike the variables defined in the model-variables such as domestic product, the volume of fixed funds, the volume of new investment and employment, which change from year to year - the model parameters are considered constants for the entire period to which the model is applied. The parameter estimation indicates the extent to which the defined model is acceptable as a model of future regional economic and tourism growth. Findings - Providing the trends of past are unacceptable in the future period, the author proposes the use of structured policies, above all in the field of investments, to guide development in the desired direction. The author has addressed this particular issue through the example of a specific tourist region, and has tested and designed a development model not only for the regional economic system, but also for its tourism subsystem. Research limitations/implications - Although they are suited to certain types of decisions, these methods have shown to be inadequate for other types, long-term strategic decisions in particular, which require so-called intuitive methods. Practical implications - Optimal decision-making in systems' operations is not possible without predictions pertaining to future economic development. The answers to numerous questions in estimating development factors are being provided by new methods, which seek to incorporate and assert an interdisciplinary approach, that is, a systematic approach in preparing decisions. Originality/value - This methodology can be used in combination with "classical" methods of research, that will can help to recommend optimum development strategies for regional economic development.
modelling economic development tourism cybernetics economic growth econometrics