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Beyond Economic Base Theory : Alternatives to Productive Economics ? The Role of the Residential Economy in Attracting Income to Switzerland

2013, Segessemann, Alain, Crevoisier, Olivier


The principal regional development theories are based on those activities whose export outside of the region drives local development. The increasing mobility of the workforce and resident population has changed the relevance of this approach. In fact, residency can also become pivotal to incomes within a region. This is what is known as the residential economy.
Based on this distinction, this article classifies the various regions of Switzerland according to three models: productive (based on income from exporting activities), residential (based on income from residents, whether this income derives from work, private wealth or annuities), or a combination thereof. In order to determine this, we have created two intensity indicators for both activities and incomes, thereby enabling us to compile a spatial typology breakdown using a Hierarchical Ascendant Classification (HAC) system. The results demonstrate that the residential economy plays an essential role in attracting high-income residents.