- New Horizons in Regional Science series
3.1 INTRODUCTION This chapter considers the REM dimension in the model discussed in Chapter 2, namely resource endowment and market fit. It is widely recognized that economic growth and performance are related or tied to the resource endowments of a region and also to market conditions and the markets a region serves and which it potentially might tap – what we refer to as market fit. Thus, as stated by Stough et al. (2001: 178): ‘The better endowed a region is in terms of resources the better it should perform ceteris paribus.’ The capacity of local leaders to act and the capacity of institutions to be effective will be considerably dependent on the resources available to them; but conversely the effectiveness and efficiency of leadership and of institutions in a region can act to enhance its resource endowments and its capacity to tap markets. 3.2 3.2.1 THE NATURE OF RESOURCE ENDOWMENTS Factors of Production and Other Considerations In the context of local economic development planning, Blakely (1994: 144) refers to the ‘5Ms’ that represent resources crucial to the economic development process and which need to be evaluated as part of strategy formulation. These are: • materials • manpower • management • markets • money They are similar to those resource endowments traditionally considered in economics as factors of production, namely: natural resources, land, labor, capital and entrepreneurship. 25 26 Leadership and institutions in regional endogenous development The resource endowments of regions are diverse and differ markedly from place to place. They include: • the area size of...
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