Theoretical Foundation of Territorial Attractiveness and Associated Measurement Indicators: An In-Depth Analysis

Abstract

The concept of attractiveness of a territory which designates "the capacity for a territory to offer to the actors’ conditions which convince them to locate their projects on their territory rather than on another" (Hatem 2004b), or even as "the ability to attract skilled labor and skills as a means to promote economic development urban regeneration" (OECD, 2005), has become in recent years a crucial issue in economic policy and territorial competitiveness (Ferrara, 2004). The objective is to increase the level of economic activity and thus guarantee sustainable development in the territory in question. (Crozet & al, 2003). An attractive territory is considered as a territory where life is good and where quality prevails. the term attractiveness therefore carries a positive meaning, but it should be emphasized that hyper-attractiveness can induce perverse effects, we cite among others the increase in real estate prices, the increase in atmospheric pollution … We must therefore set a threshold for attractiveness so as not to deteriorate the quality of life of the inhabitants and all the factors of attractiveness that feed it. The objective of this paper is to present a classic literature review on the attractiveness of the territory and its measurement indicators to do this, we will start first by presenting the theoretical foundations of territorial attractiveness. By developing two economic analysis frameworks, in particular the new geographical economy and the industrial economy, it is to focus on the indicators that make it possible to classify the territories according to their degree of attractiveness to companies. Then, this article aims to present the conditions for the attractiveness and promotion of foreign investment.

Keywords: attractiveness, territory, indicators, competitiveness, foreign direct investment, investment climate.

JEL Classification : D41, H54, Q54

Paper type: Theoretical research.