Analysis of the spatial allocation of resources for a sustainable rural economy: A wide-areal coordination approach

Excessive spatial concentrations of populations and economic activities are problematic in many countries and regions. To solve these problems, decentralisation and other related policies are often considered and implemented. In this paper, we explore how these policies can be more effective by detecting their missing elements from the standpoint of location economics. The methodological framework used is as follows. For decentralisation to work effectively, it may be important that less hierarchically ordered regions attain sufficient comfort or amenities for local producers and households. However, those regions may face managerial problems with their infrastructure and cultural facilities in efficiency terms, which can be caused by changes in the situation, such as a decline in population size associated with ageing. In such a situation, policies intended to solve problems in cooperation with neighbouring regions will play an important role. However, as an economic zone expands, several existing administrative and economic-activity-related functions are dispersed or merged, which may raise problems associated with physical accessibility. A simple location model is built to investigate how rural areas can overcome these issues by employing a framework of central place theory as well as a transportation policy.