The Impact Of A New Economic Activity On Regional Development

The central objective of this study is to understand the economic impact of a new economic activity, sponsored by government, on a subregion* within a country. This subject is inherently important from the standpoint of economic development or regional development, for it deals with problems of people where they are, in the local communities. Economic development of subregions, however, has been relegated to a secondary position in the literature on economic development or regional development. The literature has been concerned mostly with countries and large regions within a country. Studies on subregions can provide information on which the theories of economic development or regional development may be tested and/or reviewed. Furthhermore, policy recommendations on a subregional leval are more suitable to the particularitics of a local community and consequently more reliable, than recommendations for larger or more abstract spatial units (states, national regions, countries).