Economic Development, Technological Change and Growth
Abstract
Over the last few decades, global growth and development have been driven by highly
urbanised regions. This has made the research field of regional economic development of major
importance within the research field of development economics. The quantification of the progress in
regional economic development has been attempted by many researchers. Previous attempts to
measure regional economic development have made use of single and limited composite indices, such
as the Human Development Index (HDI). These indices are limited in extent, failing to capture
important aspects of development, and therefore a gap for the formulation of a comprehensive
regional economic development index exists. The primary objective of this study was therefore to
apply the multi-dimensional regional development index (MREDI) in South Africa from 1997 to
2017. The research design methodology included a comprehensive literature review and the use of
secondary data obtained from Global Insight. The index was applied to all eight metropolitan regions
in South Africa. The findings indicate that metropolitan regions are at different stages of
development, while development also occurs at a different pace across regions. The results provide
economic development practitioners with detailed insight of the socio-economic strengths and
weaknesses of the metros in South Africa and where interventions are required. The implications of
this alternative index are that it could be utilised as a tool for the analysis and measurement of global
regional efforts, as well as to compare different economic regions vis-à-vis their level of economic
development.
References
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Bairoch, P. & Braider, C. (1991). Cities and economic development: From the dawn of history to the
present. Chicago. University of Chicago Press.
Bogović, N. & Čegar, S. (2015). Economic characteristics and developmental prospects of east
Croatia. In A. Mašek Tonković, A. (Eds.) Fourth International Scientific Symposium Economy of
Eastern Croatia: Vision and Growth (pp. 62-70). Osijek: University of Osijek.
Cobb, J.B. (1989). The Index of Sustainable Economic Welfare. In H.E. Daly & J.B. Cobb, (Eds).
For the common good. (pp. 401–455). Boston: Beacon Press.
Coyle, D. (2017). Rethinking GDP. Finance and Development, Vol. 54, No. 1, pp. 17-19.
Daniela, A. (2015). Theoretical approaches of endogenous regional development. MPRA Discussion
Paper No. 64679. Munich: MPRA.
De Jongh, J.J. (2017). Youth employment barriers in the Emfuleni and Metsimaholo local municipal
areas. Masters dissertation. Vanderbijlpark: North-West University.
Eigelaar-Meets, I. (2018). Internal migration in post-apartheid South Africa: The cases of the
Western and Northern Cape. Doctoral thesis. Stellenbosch: Stellenbosch University.
Feldman, M. & Lowe, N. (2017). Evidence-based economic development policy. Innovations:
Technology, Governance, Globalization, Vol. 11, No. 3-4, pp. 34-49.
Gala, P., Rocha, I. & Magacho, G. (2018). The structuralist revenge: Economic complexity as an
important dimension to evaluate growth and development.Brazilian Journal of Political Economy,
Vol. 38, Nr. 2, pp. 219-236.
Global Insight. (2018). Regional explorer. http://www.ihsglobalinsight.co.za/. Date of access:
2018/11/03.
Goodman, N. (2015). The impact of employment on the health status and health care costs of
working-age people with disabilities. Washington, D.C.: Lead Center.
Greco, S., Ishizaka, A., Tasiou, M., Torrisi, G. (2017). On the methodological framework of
composite indices: A review of the issues of weighting, aggregation, and robustness.Social Indicators
Research, pp.1-34.
Greyling, C.T. (2013). Measurement and analysis of quality of life of the diverse population of the
Gauteng city-region. Doctoral thesis. Johannesburg: University of Johannesburg.
Greyling, T., Tregenna, F. (2017). Construction and analysis of a composite quality of life index for a
region of South Africa.Social Indicators Research, Vol. 131, No. 3, pp. 887-930.
Haller, A.P. (2012). Concepts of economic growth and development: Challenges of crisis and of
knowledge. Economy Transdisciplinarity Cognition, Vol. 15, No. 1, pp. 66-71.
Higgs, N.T. (2007). Measuring and understanding the well-being of South Africans. Social Indicators
Research, Vol. 81, No. 2, pp. 331-356.
IMF (International Monetary Fund). (2006). Data Quality Assessment Framework. Retrieved from
http://dsbb.imf.org/images/pdfs/ dqrs_factsheet.pdf. Date: 8.12.2018.
Ivković, A.F. (2016). Limitations of the GDP as a measure of progress and wellbeing. Review of
Contemporary Business, Entrepreneurship and Economic Issues, Vol. 29, No. 1, pp. 257-272.
Jovovic, R., Draskovic, M., Delibasic, M., Jovovic, M. (2017). The concept of sustainable regional
development: Institutional aspects, policies and prospects.Journal of International Studies, Vol. 10,
No. 1, pp. 255-266.
Kahika, G., Karyeija, G.K. (2017). Institutional roles and the implementation of local economic
development, Kasese District, Uganda.Africa’s Public Service Delivery and Performance Review,
Vol. 5, No. 1, pp.1-9.
Krugman, P. (1994). Complex landscapes in economic geography.The American Economic Review,
Vol. 84, No. 2, pp. 412-416.
Krugman, P.R. (1979). Increasing returns, monopolistic competition, and international trade. Journal
of International Economics, Vol. 9, No. 4, pp. 469-479.
Liu, A. (2016). Remaking economic development: The markets and civics of continuous growth and
prosperity. Washington, D.C.: Brookings Institute.
Majerová, I. (2012). Comparison of old and new methodology in human development and poverty
indexes: A case of the least developed countries. Journal of Economics Studies and Research, Vol.
2012, No. 1, pp. 1-15.
Matuschewski, A., Leick, B. & Demuth, M. (2016). Growth-based theories for declining regions? A
note on conceptualisations of demographic change for regional economic development. Comparative
Population Studies-Zeitschrift für Bevölkerungswissenschaft, Vol. 41, No. 3-4, pp. 225-254.
Meyer, D.F. & de Jongh, J.J. (2018). An alternative multidimensional regional economic
development index: A provincial application in South Africa. International Journal of eBusiness and
eGovernment Studies, Vol. 10, No. 1, pp. 97 – 113.
Meyer, D.F., De Jongh, J. & Meyer, N. (2016). The formulation of a composite regional development
index. International Journal of Business and Management Studies, Vol. 8, No. 1, pp. 100-116.
Meyer, D.F., Masehla, T.M. & Kot, S. (2017). The relationship between economic growth and
economic development: A regional assessment in South Africa. Journal of Advanced Research in
Law and Economics, Vol. 8, No. 4, pp.1377-1385.
Milne, B.T. (2017). Elements of a holistic theory to meet the sustainability challenge. Systems
Research and Behavioral Science, Vol. 34, No. 5, pp.553-563.
Mlambo, V. (2018). An overview of rural-urban migration in South Africa: its causes and
implications. Archives of Business Research, Vol. 6, No. 4, pp. 63-70.
Mohanty, P.K. & Mishra, A.K. (2014). Cities and agglomeration externalities: Lessons for Urban
public policy in Asian countries. Environment and Urbanization ASIA, Vol. 5, No. 2, pp. 235-251.
Myrdal, G. (1957). Economic theory and under-developed regions. London: Duckworth.
Naudé, W., Rossouw, S. & Krugell, W. (2009). The non-monetary quality of city life in South Africa.
Habitat International, Vol. 33, No. 4, pp. 319-326.
OECD (Organisation for Economic Co-operation and Development). (2014). OECD Regional
Outlook 2014. Paris: OECD Publishing.
Paradowska, M. (2017). Measuring socio-economic welfare and sustainable transport–selected
dilemmas. Economics and Environment, Vol. 60, No. 1, pp. 18-27.
Peach, N.D., Petach, L.A. (2016). Development and quality of life in cities. Economic Development
Quarterly, Vol. 30, No. 1, pp. 32-45.
Perišić, A., Wagner, V. (2015). Development index: Analysis of the basic instrument of Croatian
regional policy. Financial Theory and Practice, Vol. 39, No. 2, 205-236.
Perroux, F. (1955). A note on the notion of a growth pole. Applied Economy, Vol. 1, No. 2, pp. 307-
320.
Piva, M., Vivarelli, M. (2017). Technological change and employment: Were Ricardo and Marx
right? IZA Discussion Paper, No. 10471. Bonn: Institute of labour Economics.
Rodrik, D. (2018). Populism and the economics of globalization. Journal of International Business
Policy, pp. 1-22.
Rostow, W.W. (1959). The stages of economic growth. The Economic History Review, Vol. 12, No.
1, pp. 1-16.
SAARF (South African Audience Research Foundation). (2011). Development Index.
http://www.saarf.co.za/amps/ developmentindex.asp. Date of access: 7 Nov. 2018.
Schrott, L., Gächter, M. & Theurl, E. (2015). Regional development in advanced countries: A withincountry
application of the Human Development Index for Austria. Danube: Law and Economics
Review, Vol. 6, No. 1, pp. 1-23.
Seth, S. & Villar, A. (2017). Measuring human development and human deprivations. OPHI Working
Paper, No. 110. Oxford: University of Oxford.
Siddiqui, K. (2017). Globalisation, trade liberalisation and economic development in the developing
countries: An overview. Journal of Economics Library, Vol. 4, No. 4, pp. 514-529.
Sinclair-Smith, K. & Turok, I. (2012). The changing spatial economy of cities: An exploratory
analysis of Cape Town. Development Southern Africa, Vol. 29, No. 3, pp. 391-417.
Stiglitz, J.E., Sen, A. & Fitoussi, J.P. (2010). Mismeasuring our lives: Why GDP doesn't add up. The
London: The New Press.
Tiebout, C.M. (1956). A pure theory of local expenditures. Journal of political economy, Vol. 64, No.
5, pp. 416-424.
Todaro, M.P. & Smith, S.C. (2015). Economic Development. 12th ed. Essex, UK: Pearson Education
Limited.
Turok, I. & Borel-Saladin, J. (2014). Is urbanisation in South Africa on a sustainable trajectory?
Development Southern Africa, Vol. 31, No. 5, pp. 675-691.
Turok, I. (2012). Urbanisation and development in South Africa: Economic imperatives, spatial
distortions and strategic responses. London: International Institute for Environment and
Development.
UN (United Nations). (2018). World economic situation and prospects. New York: United Nations.
UNDP (United Nations Development Programme). (1990). Human Development Report 1990. New
York, NY: Oxford University Press.
UN-Habitat (United Nations Human Settlements Programme). (2016). Urbanisation and
development: Emerging futures. Nairobi: UN-Habitat.
Van Huyssteen, E., Meiklejohn, C., Coetzee, M., Goss, H. & Oranje, M. (2010). An overview of
South Africa's metropolitan areas: Dualistic, dynamic and under threat. European Spatial Research
and Policy, Vol. 17, No. 2, pp. 23-40.
Zoch, A. (2016). Measuring social and economic mobility in South Africa: New approaches to wellknown
survey data concerns. Doctoral thesis. Stellenbosch. University of Stellenbosch.
Retrieved from http://www.ub.edu/ searchproject /content/uploads.pdf. Date of access: 11.11.2018.
Bairoch, P. & Braider, C. (1991). Cities and economic development: From the dawn of history to the
present. Chicago. University of Chicago Press.
Bogović, N. & Čegar, S. (2015). Economic characteristics and developmental prospects of east
Croatia. In A. Mašek Tonković, A. (Eds.) Fourth International Scientific Symposium Economy of
Eastern Croatia: Vision and Growth (pp. 62-70). Osijek: University of Osijek.
Cobb, J.B. (1989). The Index of Sustainable Economic Welfare. In H.E. Daly & J.B. Cobb, (Eds).
For the common good. (pp. 401–455). Boston: Beacon Press.
Coyle, D. (2017). Rethinking GDP. Finance and Development, Vol. 54, No. 1, pp. 17-19.
Daniela, A. (2015). Theoretical approaches of endogenous regional development. MPRA Discussion
Paper No. 64679. Munich: MPRA.
De Jongh, J.J. (2017). Youth employment barriers in the Emfuleni and Metsimaholo local municipal
areas. Masters dissertation. Vanderbijlpark: North-West University.
Eigelaar-Meets, I. (2018). Internal migration in post-apartheid South Africa: The cases of the
Western and Northern Cape. Doctoral thesis. Stellenbosch: Stellenbosch University.
Feldman, M. & Lowe, N. (2017). Evidence-based economic development policy. Innovations:
Technology, Governance, Globalization, Vol. 11, No. 3-4, pp. 34-49.
Gala, P., Rocha, I. & Magacho, G. (2018). The structuralist revenge: Economic complexity as an
important dimension to evaluate growth and development.Brazilian Journal of Political Economy,
Vol. 38, Nr. 2, pp. 219-236.
Global Insight. (2018). Regional explorer. http://www.ihsglobalinsight.co.za/. Date of access:
2018/11/03.
Goodman, N. (2015). The impact of employment on the health status and health care costs of
working-age people with disabilities. Washington, D.C.: Lead Center.
Greco, S., Ishizaka, A., Tasiou, M., Torrisi, G. (2017). On the methodological framework of
composite indices: A review of the issues of weighting, aggregation, and robustness.Social Indicators
Research, pp.1-34.
Greyling, C.T. (2013). Measurement and analysis of quality of life of the diverse population of the
Gauteng city-region. Doctoral thesis. Johannesburg: University of Johannesburg.
Greyling, T., Tregenna, F. (2017). Construction and analysis of a composite quality of life index for a
region of South Africa.Social Indicators Research, Vol. 131, No. 3, pp. 887-930.
Haller, A.P. (2012). Concepts of economic growth and development: Challenges of crisis and of
knowledge. Economy Transdisciplinarity Cognition, Vol. 15, No. 1, pp. 66-71.
Higgs, N.T. (2007). Measuring and understanding the well-being of South Africans. Social Indicators
Research, Vol. 81, No. 2, pp. 331-356.
IMF (International Monetary Fund). (2006). Data Quality Assessment Framework. Retrieved from
http://dsbb.imf.org/images/pdfs/ dqrs_factsheet.pdf. Date: 8.12.2018.
Ivković, A.F. (2016). Limitations of the GDP as a measure of progress and wellbeing. Review of
Contemporary Business, Entrepreneurship and Economic Issues, Vol. 29, No. 1, pp. 257-272.
Jovovic, R., Draskovic, M., Delibasic, M., Jovovic, M. (2017). The concept of sustainable regional
development: Institutional aspects, policies and prospects.Journal of International Studies, Vol. 10,
No. 1, pp. 255-266.
Kahika, G., Karyeija, G.K. (2017). Institutional roles and the implementation of local economic
development, Kasese District, Uganda.Africa’s Public Service Delivery and Performance Review,
Vol. 5, No. 1, pp.1-9.
Krugman, P. (1994). Complex landscapes in economic geography.The American Economic Review,
Vol. 84, No. 2, pp. 412-416.
Krugman, P.R. (1979). Increasing returns, monopolistic competition, and international trade. Journal
of International Economics, Vol. 9, No. 4, pp. 469-479.
Liu, A. (2016). Remaking economic development: The markets and civics of continuous growth and
prosperity. Washington, D.C.: Brookings Institute.
Majerová, I. (2012). Comparison of old and new methodology in human development and poverty
indexes: A case of the least developed countries. Journal of Economics Studies and Research, Vol.
2012, No. 1, pp. 1-15.
Matuschewski, A., Leick, B. & Demuth, M. (2016). Growth-based theories for declining regions? A
note on conceptualisations of demographic change for regional economic development. Comparative
Population Studies-Zeitschrift für Bevölkerungswissenschaft, Vol. 41, No. 3-4, pp. 225-254.
Meyer, D.F. & de Jongh, J.J. (2018). An alternative multidimensional regional economic
development index: A provincial application in South Africa. International Journal of eBusiness and
eGovernment Studies, Vol. 10, No. 1, pp. 97 – 113.
Meyer, D.F., De Jongh, J. & Meyer, N. (2016). The formulation of a composite regional development
index. International Journal of Business and Management Studies, Vol. 8, No. 1, pp. 100-116.
Meyer, D.F., Masehla, T.M. & Kot, S. (2017). The relationship between economic growth and
economic development: A regional assessment in South Africa. Journal of Advanced Research in
Law and Economics, Vol. 8, No. 4, pp.1377-1385.
Milne, B.T. (2017). Elements of a holistic theory to meet the sustainability challenge. Systems
Research and Behavioral Science, Vol. 34, No. 5, pp.553-563.
Mlambo, V. (2018). An overview of rural-urban migration in South Africa: its causes and
implications. Archives of Business Research, Vol. 6, No. 4, pp. 63-70.
Mohanty, P.K. & Mishra, A.K. (2014). Cities and agglomeration externalities: Lessons for Urban
public policy in Asian countries. Environment and Urbanization ASIA, Vol. 5, No. 2, pp. 235-251.
Myrdal, G. (1957). Economic theory and under-developed regions. London: Duckworth.
Naudé, W., Rossouw, S. & Krugell, W. (2009). The non-monetary quality of city life in South Africa.
Habitat International, Vol. 33, No. 4, pp. 319-326.
OECD (Organisation for Economic Co-operation and Development). (2014). OECD Regional
Outlook 2014. Paris: OECD Publishing.
Paradowska, M. (2017). Measuring socio-economic welfare and sustainable transport–selected
dilemmas. Economics and Environment, Vol. 60, No. 1, pp. 18-27.
Peach, N.D., Petach, L.A. (2016). Development and quality of life in cities. Economic Development
Quarterly, Vol. 30, No. 1, pp. 32-45.
Perišić, A., Wagner, V. (2015). Development index: Analysis of the basic instrument of Croatian
regional policy. Financial Theory and Practice, Vol. 39, No. 2, 205-236.
Perroux, F. (1955). A note on the notion of a growth pole. Applied Economy, Vol. 1, No. 2, pp. 307-
320.
Piva, M., Vivarelli, M. (2017). Technological change and employment: Were Ricardo and Marx
right? IZA Discussion Paper, No. 10471. Bonn: Institute of labour Economics.
Rodrik, D. (2018). Populism and the economics of globalization. Journal of International Business
Policy, pp. 1-22.
Rostow, W.W. (1959). The stages of economic growth. The Economic History Review, Vol. 12, No.
1, pp. 1-16.
SAARF (South African Audience Research Foundation). (2011). Development Index.
http://www.saarf.co.za/amps/ developmentindex.asp. Date of access: 7 Nov. 2018.
Schrott, L., Gächter, M. & Theurl, E. (2015). Regional development in advanced countries: A withincountry
application of the Human Development Index for Austria. Danube: Law and Economics
Review, Vol. 6, No. 1, pp. 1-23.
Seth, S. & Villar, A. (2017). Measuring human development and human deprivations. OPHI Working
Paper, No. 110. Oxford: University of Oxford.
Siddiqui, K. (2017). Globalisation, trade liberalisation and economic development in the developing
countries: An overview. Journal of Economics Library, Vol. 4, No. 4, pp. 514-529.
Sinclair-Smith, K. & Turok, I. (2012). The changing spatial economy of cities: An exploratory
analysis of Cape Town. Development Southern Africa, Vol. 29, No. 3, pp. 391-417.
Stiglitz, J.E., Sen, A. & Fitoussi, J.P. (2010). Mismeasuring our lives: Why GDP doesn't add up. The
London: The New Press.
Tiebout, C.M. (1956). A pure theory of local expenditures. Journal of political economy, Vol. 64, No.
5, pp. 416-424.
Todaro, M.P. & Smith, S.C. (2015). Economic Development. 12th ed. Essex, UK: Pearson Education
Limited.
Turok, I. & Borel-Saladin, J. (2014). Is urbanisation in South Africa on a sustainable trajectory?
Development Southern Africa, Vol. 31, No. 5, pp. 675-691.
Turok, I. (2012). Urbanisation and development in South Africa: Economic imperatives, spatial
distortions and strategic responses. London: International Institute for Environment and
Development.
UN (United Nations). (2018). World economic situation and prospects. New York: United Nations.
UNDP (United Nations Development Programme). (1990). Human Development Report 1990. New
York, NY: Oxford University Press.
UN-Habitat (United Nations Human Settlements Programme). (2016). Urbanisation and
development: Emerging futures. Nairobi: UN-Habitat.
Van Huyssteen, E., Meiklejohn, C., Coetzee, M., Goss, H. & Oranje, M. (2010). An overview of
South Africa's metropolitan areas: Dualistic, dynamic and under threat. European Spatial Research
and Policy, Vol. 17, No. 2, pp. 23-40.
Zoch, A. (2016). Measuring social and economic mobility in South Africa: New approaches to wellknown
survey data concerns. Doctoral thesis. Stellenbosch. University of Stellenbosch.
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Published
2021-07-01
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Collective Authors. (2021). Economic Development, Technological Change and Growth: Array. Acta Universitatis Danubius. Œconomica, 15(5). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1221
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