Periphery syndrome - a reinterpretation of regional development theory in a resource periphery

A study is made of industrialization and the transition in economic structure as it has affected a remote peripheral region of Finland with a predominantly resource‑based economy over the last twenty years or so. The empirical resultsare used to interpret and develop theory of regional development a...

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Bibliographic Details
Published in:Fennia - International Journal of Geography
Main Author: Markku Tykkyläinen
Format: Article in Journal/Newspaper
Language:English
Published: Geographical Society of Finland 1988
Subjects:
Online Access:https://doi.org/10.11143/fennia.9041
https://doaj.org/article/4e88fa1f4bbc4ac798ced306c1970337
Description
Summary:A study is made of industrialization and the transition in economic structure as it has affected a remote peripheral region of Finland with a predominantly resource‑based economy over the last twenty years or so. The empirical resultsare used to interpret and develop theory of regional development adequate for describing the transition of this peripheral region from an area dominated by primary‑sector production to one characterized by industry and the service sec­tor. The resource‑based peripheral region concerned is the province of Northern Karelia. A region‑level core‑periphery system is outlined in which the organization of the economy, the division of labour, performance potential and environmental relations are examined by regional and spatial analysis and resource analysis. A model is developed for evaluating the performance potential of an economy and proposing alternative paths of development. Development in a periphery is regulated by external impulses (demand, regional policy, etc.) together with the distinctive features imposed on the economy by its past history. This development can be explained by reference to rationaliza­tion in resource processing sectors, profitability difficulties, poor growth propen­sity and special characteristics of the division of labour and the adoption of new technology. The combined effect of these factors, termed here the periphery syn­drome, leads to differences in affluence and in general to regional differentia­tion in the economy. The syndrome is dynamic in nature. The principal problems following the economic transition are shifting away from rationalization in agricul­ture and towards the structure of industry itself. The resource periphery is be­coming an industrial periphery. The conclusions comprise a set of eight conceptual systems of factors which should be taken into account when studying economic transition and industriali­zation in peripheral regions. These concern development with respect to popula­tion, rationalization, regional policy, the spatial ...