What Are the Advantages of a Traditional Economy?

Regional economic advantage refers to the favorable conditions or superior status of an area in terms of objective economic development. Its constituent factors mainly include: In terms of natural resources and geographical location, the quantity, quality, and development and utilization value of minerals, energy, cultivated land, grasslands, forests, waters and wild animals and plants owned by each region, as well as regional climate, geology, and terrain , Geomorphology and geographical location; economic and social aspects, manifested in regional production capacity, capital concentration, market, transportation, economic cooperation conditions, production specialization and intensification, and the traditional production characteristics and specialties formed by history , Good product reputation, etc. In terms of science and technology and management, including the quality and quantity of scientific and technological personnel, the technical level of workers, the technical intensity of products or industries, the proportion of advanced and sophisticated equipment, and the level of enterprise management. There are also favorable factors in politics, culture, education, scientific research and tourism. The main indicators for measuring regional economic advantages are: technical effect analysis indicators (such as natural resource utilization rate, output per unit area, etc.); economic management analysis indicators (such as total output value, total output, total revenue, total cost, total operating profit, etc.); Main economic performance indicators (such as unit investment output value, unit product cost, labor productivity, investment payback period, capital utilization rate, cost utilization rate, economic cost-cutting threshold, etc.); purpose indicators (such as commodity rate, per capita income, and per capita annual national income Wait). Regional economic advantage is a comprehensive concept, that is, a comprehensive advantage. It is often difficult for a single advantage to form a regional economic advantage. At the same time, it is a concept of development. The existence of advantages changes with changes in relevant conditions.

Regional economic advantage

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Regional economic advantage refers to the favorable conditions or superior status of an area in terms of objective economic development. Its constituent factors mainly include: In terms of natural resources and geographical location, the quantity, quality, and development and utilization value of minerals, energy, cultivated land, grasslands, forests, waters and wild animals and plants owned by each region, as well as regional climate, geology, and terrain , Geomorphology and geographical location; economic and social aspects, manifested in regional production capacity, capital concentration, market, transportation, economic cooperation conditions, production specialization and intensification, and the traditional production characteristics and specialties formed by history , Good product reputation, etc. In terms of science and technology and management, including the quality and quantity of scientific and technological personnel, the technical level of workers, the technical intensity of products or industries, the proportion of advanced and sophisticated equipment, and the level of enterprise management. There are also favorable factors in politics, culture, education, scientific research and tourism. The main indicators for measuring regional economic advantages are: technical effect analysis indicators (such as natural resource utilization rate, output per unit area, etc.); economic management analysis indicators (such as total output value, total output, total revenue, total cost, total operating profit, etc.); Main economic performance indicators (such as unit investment output value, unit product cost, labor productivity, investment payback period, capital utilization rate, cost utilization rate, economic cost-effective threshold, etc.); purpose indicators (such as commodity rate, per capita income, and per capita annual national income Wait). Regional economic advantage is a comprehensive concept, that is, a comprehensive advantage. It is often difficult for a single advantage to form a regional economic advantage. At the same time, it is a concept of development. The existence of advantages changes with changes in relevant conditions.

Chinese name

Regional economic advantage

Concept

Favorable condition or superior position

Constitutive factor

Natural resources

Purpose

Difficulty in fully mobilizing production in the region

According to its development characteristics, it is divided into actual advantages and potential advantages. The former is transformed from the latter under certain conditions. The "region" of regional economic advantage is a relative concept, and its scope should be determined according to the comparison object. Regional economic advantages have four characteristics: regionality, relativity, relevance, and variability. Most of its analysis methods use comprehensive analysis methods, which can perform qualitative and quantitative technical and economic analysis from multiple factors. Giving play to regional economic advantages should, on the one hand, focus on the overall national economy and obey the general interests of socialism; on the other hand, regional interests should not be ignored, otherwise it will be difficult to fully mobilize the enthusiasm of production in the region.