Analysing of the territorial competitiveness index in Izmir through dynamic model

Abstract

Transition towards more sustainable and resilient economies is crucial to provide sustainable economic development by considering environmental protection and social well-being. There is an increasing focus on the concept of territorial competitiveness that encompasses the aspects of environmental, social, and economic sustainability. Thus, this study aims to analyse the factors affecting the territorial competitiveness index in the Izmir town. To facilitate a comprehensive analysis of the factors that impact territorial competitiveness, a systematic approach is employed through the use of a system dynamic model. This model enables the exploration of the complex and dynamic relationships between key parameters, providing insights into their interdependencies and how they cooperatively influence the territorial competitiveness index. The results show that Gross Domestic Product growth rate, renewable energy production and technology innovation index is increased rapidly. This increase caused by development of social well-being in the region. However, sustainable land use and waste is decreased and therefore CO2 is increased in the 2010 and 2027. Besides, territorial competitiveness index is expected to increase till 2027 since subsidies in energy and material (re)use, efficient use of resources (circular economy), achievement of economic development and technological investments. Governments and businesses should adopt sustainable strategies for improving territorial competitiveness index and balancing economic growth with environmental protection and social welfare in the regional context.