Economic Research and Perspectives

Economic Research and Perspectives

Developing the integrated system of regional sustainable development of Razavi Khorasan

Authors
Alireza Pooya 1
Somayeh Fadaei 2
Mitra Seyedzadeh 3
Ali Sibevei 4
1 Professor, Management Department, Faculty of Economic and Administrative Sciences, Ferdowsi University of Mashhad (FUM), Mashhad, Iran
2 Ph.D. Student, Management Department, Faculty of Economic and Administrative Sciences, Ferdowsi University of Mashhad (FUM), Mashhad, Iran
3 Assistant Professor, management department, Faculty of Eqbal Lahoori Institute of Higher Education, Mashhad, Iran
4 Researcher of Systems Thinking in Practice Research Group, Faculty of Economics and Administrative sciences, Ferdowsi University Of Mashhad, Mashhad, Iran
10.22034/24.1.57
Abstract
Introduction:

Regional and local levels of managing and implementing development policies have always been the focus of scientific, policy-making, and executive circles. In this regard, new models have emphasized sustainable development. The sustainable development of a region should not only be coordinated with its various resources, but also it should be based on the social environment and native culture of the country and region. Therefore, in the current research, a dynamic model of the economic-cultural development triangle is presented with the inclusion of sustainable development dimensions (social, environmental and economic). The economic-cultural development triangle model is a non-dynamic model with four dimensions of executive bodies, parliament representatives, private sector and Friday Imams. In this model, cooperation and coordination of these four dimensions are considered necessary for regional development. This shows the complexity of an economic system that consists of various factors and many interactions, which leads to complex behaviors of economic indicators over time. In this complex system, the implementing of regional development policies without a systemic approach and holistic view is not beneficial and may lead to a decrease in economic growth and regional production. Therefore, in policy-making, attention should be paid to the influential factors in the system, and the appropriate policy should be selected and implemented. The systems dynamics approach is a holistic thinking method about all components of a system and is a way to understand the dynamic behavior of complex systems. Therefore, this approach has been used in this research.

Methodology:

Due to the complex and interlinked relationships in the sustainable development system of the region, the constituent elements of this system are dynamic and change over time. Therefore, in this research, systems dynamics method is used. In this approach, in the first step, the research problem is defined. According to the research background, the variables of the problem and the boundary of the sustainable economic development system of the region are determined. In the next step, the relationship between the variables is determined by a cause-and-effect diagram. Then a flow diagram is drawn to simulate the problem. After simulating using Vensim software and validating the model, suitable scenarios are evaluated.

Results and Discussion:

The purpose of presenting the model is to improve the economic and social indicators of the province. Based on the designed model, the behavior of the system has been simulated in a ten-year time horizon from 2013 to 2023. The results of the scenario show that private sector’ presence did not have a one-time and jumpy increase effect on the gross domestic product of the region. However, rather it helped the production growth process in a very gentle and delayed manner. The results of the simulation of the policies show that the two policies, "stability of laws and executive procedures" and "optimal use of investments," lead to the increase of private sector’ economic activities. Since these policies highlight private sector’ presence in the region, the implementation of this policy will lead to an increase in jobs created by private sector and investment through private sector’s activities. In contrast, the physical capital created on a large scale in the province is not noticeable. The strength of the economic and cultural development triangle plan is the correct direction of investments and using unused capacities, and as a result, the working population has increased.

Conclusion:

According to the results of the implementation of the policies, it is suggested that they should be implemented simultaneously according to the combined policy of "stability of laws and executive procedures", "optimal use of investments," and "development of educational infrastructure," which will also make use of the capacities of the region's workforce. Moreover, it also increases the available physical capital because other investors (other than private sector) tend to invest. With the implementation of the combined policy, the working population and physical capital, which are considered as production inputs, will increase. As a result, the production of the region will increase.
Keywords
sustainable development
Systems dynamics
Economic-cultural development triangle
Razavi Khorasan province

Subjects

Arasu, B. S., Kannaiah, D., Nancy Christina, J., & Shabbir, M. S. (2021). Selection of variables in data envelopment analysis for evaluation of stock performance. Management and Labour Studies, 46(3), 337-353.
BazazZadeh, M., Dadashpoor, H., Motavaf, S. (2014). Analysis the Key Factors Impacting on Regional Development using Regional Foresight approach, The Case Study of West Azerbaijan Province, Iran. Spatial Planning, 4(2), 79-104. (in persian).
Billi,A and Tricarico,L. (2019). Regional Development Policies in Italy: How to Combine Cultural Approaches with Social Innovation. Springer International Publishing AG . SIST 101, pp. 277–287.
Brandt, R . Kambourov ,G & Storesletten ,K .(2018). Barriers to Entry and Regional Economic Growth in China . University of Toronto Department of Economics .
Černevičiūtė, J., Strazdas, R., Kregždaitė, R., & Tvaronavičienė, M. (2019). Cultural and creative industries for sustainable postindustrial regional development: The case of Lithuania. Journal of International Studies, 12(2), 285-298.
Chu, Z., Liu, C., Li, G., & Guan, K. (2018). Sustainable development of the economic circle around Beijing: A view of regional economic disparity. Sustainability, 10(10), 3691.‌
Dasgupta, D. (2008). Exploring Harrod Domar and Solow Models of Economic Growth. Indian Growth and Development Review.‌
Farajirad K, Kazemian G, Rokneddin Eftekhari A.(2013). Pathology of Regional Development Policies in Iran: An Institutional Approach. JMDP.; 26 (2) :27-58. (in persian).
Golpaygani M.(2016). Cross-Cultural Study of Gender Socialization in New Zealand and Iran. Anthropol Stud.; 2 (1) :135-151.(in persian).
Hauge, E. S., Pinheiro, R. M., & Zyzak, B. (2018). Knowledge bases and regional development: collaborations between higher education and cultural creative industries. International Journal of Cultural Policy, 24(4), 485-503.‌
Hjorth ,P . Bagheri ,A. (2006). Navigating towards sustainable development: A system dynamics approach . Futures 38 ,74–92.
Ho ,Y & Wang ,S .(2005). System Dynamics Model for the Sustainable Development of Science City. In The 23rd International Conference of System Dynamics Society, Sloan School of Management, MIT, USA.‌
Hu, M., Zhang, J., & Chao, C. (2019). Regional financial efficiency and its non-linear effects on economic growth in China. International Review of Economics & Finance, 59, 193-206.
Ibrahimzadeh, D., Kashefi doost, D. (2018). Assessing regional sustainability by the green economy approach Case Study; Cities of West Azerbaijan Province. Geography and Territorial Spatial Arrangement, 8(27), 1-18. (in persian).
Islam , R., Siwar, C (2012). Concepts, approach and indicators for sustainable regional development. Advances in Environmental Biology, 6(3), 967-980.‌
Jovovic, R., Draskovic, M., Delibasic, M., & Jovovic, M. (2017). The concept of sustainable regional development – institutional aspects, policies and prospects. Journal of International Studies, 10(1), 255-266.
Kalantari-Banadaki, S. Z., Azar, A., & Abbasi-Shavazi, M. J. (2018). System Dynamics and Iran's Population Changes. Journal of Population Association of Iran, 12(24), 7-41. (in persian).
Khorasan Razavi provincial Government. (2017). The theoretical foundations of the economic development triangle, a new idea in the direction of the realization of the resistance economy. (in persian).
Kokotkina, T. N., Sadovin, N. S., Bespalov, D. E., Borisov, V. A., Tsaregorodtsev, E. I., Malinina, A. A., & Vasilyeva, E. O. (2015). A Dynamic Model of Regional Economic Growth. Mediterranean Journal of Social Sciences, 6(3 S7), 139.‌
Lektauers A. )2015(. System Dynamics Framework for Sustainable Development Analysis of Local Governments. Eastern European Business and Economics Journal 1(2): 85-101.
Márquez, M. A., Ramajo, J., & Hewings, G. J. (2006). Dynamic effects within a regional system: an empirical approach. Environment and Planning A, 38(4), 711-732.‌
Moffatt ,I & Hanley ,N (2001) . Modelling sustainable development: systems dynamic and input–ouput approaches .Environmental Modelling & Software 16 (2001) 545–557.
Mohammadi, H., Moarefi-Mohammadi, A. H., & Aghasafari, H. (2017). Opportunity Inequality and its Effects on Economic Growth and Per Capita GDP. Iranian Journal of Economic Studies, 6(2), 203-225.
Niño-Amézquita, J. L. Dubrovsky,V,. Jankurová, A. (2017). Innovations and competitiveness in regional development a comparison of Latin America, Europe, and China.
Panahi, Mohammad Hossein (2015). Cultural Development, a Requirement For Economic, Social and Political Development. Social Development & Welfare Planning, 7(22), 1-23. (in persian).
Pejic Bach ,M .Tustanovski ,E . Andrew W.H. Ip, Yung K and Vasja Roblek. (2019). System dynamics models for the simulation of sustainable urban development . Kybernetes.
Pike, A., Rodríguez-Pose, A., & Tomaney, J. (2016). Local and regional development. Routledge.‌
Qureshi ,M .(2009). Human development, public expenditure and economic growth: a system dynamics approach. International Journal of Social Economics ,Vol. 36 ,pp. 93-104.
Sadiq, M., Usman, M., Zamir, A., Shabbir, M. S., & Arif, A. (2021). Nexus between economic growth and foreign private investment: evidence from Pakistan economy. Cogent Economics & Finance, 9(1), 1956067.
Sedarati ,P. Santos ,S & Pintassilgo ,P. (2019). System Dynamics in Tourism Planning and Development. Tourism Planning & Development.
Sotarauta, M. (2005). Shared Leadership and Dynamic Capabilities in Regional Development. In Sagan & Halkier (eds.) Regionalism Contested: Institution, Society and Governance. Urban and Regional Planning and Development Series, pp. 53-72. Cornwall, Ashgate.
Stern, D. I. & A. Kander. (2010). The role of energy in the Industrial Revolution and modern economic growth, CAMA Working Papers.
Tasrif, M. (2014). System Dynamics Model of Technology and Economic Growth: A Preliminary Study.‌
Tutor, i. (2017). Regional development planning strategy: designing a dynamic integrated model framework for the sicily region.‌
Uehara, T., Cordier, M., & Hamaide, B. (2018). Fully dynamic input-output/system dynamics modeling for ecological-economic system analysis. Sustainability, 10(6), 1765.‌
Wheat, I. D., & Pawluczuk, A. (2014). Dynamic regional economic modeling: a systems approach. Ekonomia i Zarządzanie, 6(4).
Ran, W. (2015). A system dynamics approach to exploring sustainable tourism development. In Proceedings of the 30th international conference of the system dynamics society. Retrieved April.
Razm Hosseini, Alireza. (2017). A brief report on the implementation of the example model of economic, cultural and economic development of the province. (in persian).
Rosés, J., & Wolf, N. (2018). Regional economic development in Europe, 1900-2010: a description of the patterns.‌
Zelinka ,D & Amadei B. (2019). Systems Approach for Modeling Interactions Among the Sustainable Development Goals Part 1: Cross-Impact Network Analysis. International Journal of System Dynamics Applications ,Volume 8 Issue 1.
Zelinka, D. L. (2019). Systems Approaches to Transdisciplinary Sustainable Development Issues.‌
Zhan , S.F.Zhang ,X.C .C. Ma & Chen ,W.P. (2012) . Dynamic modelling for ecological and economic sustainability in a rapid urbanizing region.
Zhao ,R . Tian ,Y . Lei, A & Ren ,Z .(2019). The E_ect of Local Government Debt on Regional Economic Growth in China: A Nonlinear Relationship Approach . Sustainability .
Zuo, Y., Shi, Y. L., & Zhang, Y. Z. (2017). Research on the sustainable development of an economic-energy-environment (3E) system based on system dynamics (SD): A case study of the Beijing-Tianjin-Hebei Region in China. Sustainability, 9(10), 1727
Economic Research and Perspectives
Volume 24, Issue 1
Spring 2024
Pages 57-88