The determinants of territorial development in developing countries: a literature review

Abstract

Territorial development refers to the process of improving economic and social conditions in a specific geographical area. This can involve a variety of initiatives such as investing in infrastructure, supporting local businesses, and promoting the development of new industries. The goal of territorial development is to create a more dynamic and prosperous region that can benefit both residents and the economy as a whole. The process can be undertaken by governments, the private sector, and other organizations and often involves partnerships and collaboration among stakeholders. It relies on the creation of a productive entity primarily anchored in a geographical space. Developing countries often face a range of economic, social and political challenges that can impede their ability to improve the well-being of their citizens and create a more prosperous society. Territorial development can be a useful tool to address these challenges and promote sustainable and inclusive growth. For example, investing in infrastructure such as roads, ports and telecommunications systems can help connect people and businesses to markets, facilitate the flow of goods and services, and create new economic opportunities. Supporting local businesses and entrepreneurs can help create jobs and stimulate economic activity, while promoting the development of new industries can diversify the economy and increase competitiveness. In this way, territorial development can help developing countries overcome some of the structural obstacles that can hold them back and build a brighter future for their citizens. Development aid and assistance can play a role in promoting territorial development, but it also faces obstacles such as poverty, lack of infrastructure, limited access to education and skills, political instability, and environmental degradation. This is a review of the literature about the determinants of territorial development in developing countries that details these aforementioned points.

Keywords: Territorial development, Developing countries, Competitiveness, Innovation.

JEL Classification: O10, O11, O18

Paper type: Theoretical Research.