Studying R-3 Communities: An Economic Lens
نویسندگان
چکیده
Rural, regional and remote (R-3) communities are generally in decline in Australia and in some other countries in the Western world. The economic problems include a decline in agriculture as competitive countries protect their domestic industry by subsidies and high tariffs. This paper examines the economic situation of these communities on four levels. These are the policy level (the Australian Federal Government and State Governments), the strategy level (the local council), the operational level (the commercial enterprise) and the people level (the community inhabitants). Our analytical perspective is via a number of economic theories. These are resource advantage theory, evolutionary economics, network externalities and increasing returns, and finally transaction cost economics. We conclude that policy making may be a blunt instrument if not supported by appropriate strategy and that resource advantage theory offers a key lens through which to analyse R-3 community survival.
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