Basic information for economic policy decisions
Globalization and decentralization have forced competition between the regions and present new challenges for economic policy-makers. Based on extensive databases and comprehensive models BAK Economics examines economic issues that threaten the regions.
Define your own economic region
A prerequisite for meaningful analyzes for economic regions is their definition. Three different approaches can be distinguished: the structural, functional or administrative definition of a region. The «Regional Economic Database» (RED) of BAK Economics usually contains regional data at NUTS3 level and therefore follows administrative boundaries. However, the administrative region often differs greatly from the economically functional region. In order to take account of the functional relationships, BAK defines the region as a function of its functional characteristics, such as the labor market or commuter flows. This approach can also be used to analyze cross-border economic areas.
Know the competing regions
In order for regions to be aware of their position in the global location competition, they must compare themselves to other regions. However, comparisons only make sense if the regions have a similar initial situation. BAK selects the comparison regions on the basis of the following criteria: size, population density, economic structure, innovation activities, geographic location and specific characteristics such as an important port. The economic success of a region is therefore not the only selection criterion, but only one of many.
Analyze the regional economic structure
Differences in the development of different regions can be explained by analyzing the structure of the regional economy with all its branches and clusters. Structural analyzes identify the sectors and industries in which the region performs particularly well, and those that still need to be built. However, the analyzes also show the sectors of a region that are performing less well in comparison to the competition sites.
Compare economic performance and location factors internationally
The international comparison of the economic performance and the location factors of a region identifies its strengths and weaknesses. The basis for these comparisons is the IBD. It includes indicators of the economic performance of a region (for example GDP per capita or productivity development) and the relevant location factors such as taxation, innovation or quality of life.
Develop economic policy recommendations
On the basis of these regional analyses (Regional Economic Analyses), BAK Economics develops policy recommendations on how a region can maintain and improve its position in the international competitiveness of the region, providing decision-making and argumentation support for the development and implementation of a regional economic strategy. With regular monitoring, the success of this strategy can also be evaluated. BAK supports its clients in all these steps.