The role of institutional capacity in the competitiveness of middle cities of Iran (Case: Sanandaj and Zanjan cities)

Document Type : Research Paper

Authors

1 Tehran Jalal AleAhmad Nasr

2 عضو هیأت علمی

3 Department of Geography, Tarbiat Modares University, Tehran

4 University of Kurdistan

Abstract

Abstract
Studies by the World Bank and the United Nations emphasize the importance of capacity building and institutional capacity, development based on competitiveness requires the existence of efficient institutions, And argue that urban levels lacking efficient and appropriate institutions demonstrate low competitiveness to achieve a reasonable level of development, And in the absence of appropriate institutions, even the most appropriate and reasonable policies of competitiveness would not yield desirable results. Today, in the context of institutional capacity and institutional approach to development in the general notion and urban competitiveness in a particular sense, significant importance has been valued to the institutional capacities existing at these levels. Focusing on capacity building and institutional capacity discussions within an institutional approach can play an important role in cities, especially the central cities of the country, By enhancing their competitiveness, they will eliminate many existing and future issues in metropolises and major cities of the country. And by redistributing pressure on the metropolitan system of the country, it will reduce urban issues.
The present study aims to explain the role of institutional capacity in the competitiveness of the central cities of Zanjan and Sanandaj in order to determine in the first stage the status of both Zanjan and Sanandaj in terms of institutional capacity in urban competitiveness, and Then to evaluate the effect of institutional capacity on urban competitiveness in the studied cities using the structural equation models
Therefore, the purpose of the study raised the following questions:
• What is the level of institutional capacity in the competitiveness of the central cities of Zanjan and Sanandaj?
• Which of the components of institutional capacity has the most impact on the competitiveness of the central cities of Zanjan and Sanandaj?
• How effective is institutional capacity in the competitiveness of the central cities of Zanjan and Sanandaj?
Method
The present research is based on the objective, applied and in terms of method and nature, an analytical descriptive. The data collection method was based on a survey method (questionnaire). Validity and fit of the questionnaire were done using a confirmatory factor analysis in lisrel software. The statistical population of the study consisted of two groups of authorities and people (referring to municipal offices) in Zanjan and Sanandaj. Using the Cochran formula, the population size of the sample is 760 people (380 questionnaires for each city). Also, the statistical community for the group is 260 people, each with 130 people. Sampling method of the citizens group, random sampling and the authorities was non-random and purposeful.
Data analysis was performed in SPSS and Lisrel softwares. In the first stage, to clarify the status of institutional capacity indicators in urban competitiveness, the data was analyzed and the status of each indicator of institutional capacity in different cities of Sanandaj and Zanjan and for both the specified respondents and authorities were determined. In the next step, the most important factor influencing institutional capacity in urban competitiveness was defined. Finally, to investigate the effect of institutional capacity on urban competitiveness, it has been evaluated by the triple and quadruple components of urban competitiveness.
Discussion
In the research findings, descriptive findings were first analyzed and factors such as age, gender, education, employment rate and residence were investigated. In the next step, in order to investigate the current status of cities in Zanjan and Sanandaj in terms of institutional capacity, the average was used which indicate mentioned cities were not in desirable condition. It is important to determine which institutional capacity factors could play a very important role in urban competitiveness. and accordingly. it was determined that institutional capacity is the most important factor in this case. To investigate and answer to the third question, the impact of institutional capacity on urban competitiveness was measured in a structural equation model, and the model showed a very favorable fit, so that its significant confirmation of effect was appropriate.
Result
The results show that the status of institutional capacity in urban competitiveness in both Sanandaj and Zanjan does not show acceptable status; the Zanjan city with a value of 2.87 and Sanandaj with a numerical value of 2.91 are considered to be lower than the average in terms of institutional capacity in the general level. In both cities, the index of "human capital" has the highest numerical value, and subsequently, the intra-institutional relationships (Zanjan) and the collective capacity of institutions (Sanandaj) have the lowest possible mean. In relation to the population questionnaire, the total institutional capacity for Zanjan city was 3.02 and for Sanandaj 2.82, and it has not been evaluated at acceptable level. The results of structural equation model showed that institutional capacity indices in each group have a significant but different relationship; As the relationship has a negative impact level and in some other factors, it tends to be negative in the remaining cases, indicating a lack of positive impact on institutional capacity indicators. The results of measuring the impact of institutional capacity components on urban competitiveness showed that in Zanjan only the component of institutional capability (3.02) and in Sanandaj, the institutional capacity components (3.08) and appropriate legal arrangements (3.02) have been above average. Assessing the impact of institutional capacity on the competitiveness of the central cities of Zanjan and Sanandaj in the structural equation model, in addition to the significance of the relationship between institutional capacity and urban competitiveness, The impact of the variable institutional capacity on urban competitiveness is accepted at a high level with a numerical value of 11.98 and reflects the "very high institutional capacity on urban competitiveness Following the conclusion of the high impact of institutional capacity on urban competitiveness, World Bank Studies, the Asian Development Bank and the UN Program also emphasize the existence of efficient, capable and diverse institutions, especially executive agencies, to advance the competitiveness of cities and development.

Keywords


  1. Amin, A., 1998, An Institutional Perspective on Regional Economic Development, Paper Presented at the Economic Geography Research Group Seminar of Institutions and Governance, Department of Geography UCL, London.
  2. Asheim, B.; Cooke, PH. and Martin, R., 2006, Clusters and Regional Development: Critical Reflections and Explorations, Routledge.
  3. Bentler, P. M., & Bonett, D. G. (1980). Significance tests and goodness of fit in the analysis of covariance structures. Psychological bulletin, 88(3), 588-606.
  4. Brown, Rebekah, 2008, Local Institutional Development and Organizational Change for Advancing Sustainable Urban Water Futures, Environmental Management, Feb;41(2):221-33.
  5. doi: 10.1007/s00267-007-9046-6.
  6. Bruneckiene, Jurgita; Guzavicius, Andrius and Cincikaite,  Renata, 2010, Measurement of Urban Competitiveness in Lithuania, Inzinerine Ekonomika-Engineering Economics, Vol. 21, No. 5, PP. 493-508.
  7. Carlson, Jamie: Ranjit, Voola: Andrew, West (2001), Emotional intelligence and competitive advantage: examining the relationship from a resource-based view, Strat. Change 13: 83–93.
  8. Chaskin, R., 2001, Defining Community Capacity: A Definitional Framework and Case Studies from a Comprehensive Community Initiative, Urban Affairs Review, Vol. 36, No. 3, PP. 291-323.
  9. De Meene, S., 2008, Institutional Capacity Attributes of a Water Sensitive City: theCase of Sydney, Australia, 11th International Conference on Urban Drainage, Edinburgh, Scotland, UK.

10. Deolalikar, A.B.; Brilliantes, A.B.; Gaiha, R.; Pernia, E.M. and Racelis, M., 2002, Poverty Reduction and the Role of Institutions in Developing Asia, Asian Development Bank, Manila.

11. European Commission, 2005, Institutional Assessment and Capacity Development: Why, What and How?, Europe Aid.

12. Evans, B.; Marko, J.; Sundback, S. and Theobald, K., 2005, Governing sustainable cities, Earthscan, London.

13. Faraji Rad, Khedr, 2012, Explaining the Relationship between Institutional Capacity and Sustainable Regional Development and Presenting an Appropriate Framework (Case Study: Urmia and Bukan), PhD Thesis in Geography and Urban Planning, Faculty of Humanities, Tarbiat Modares University, Supervisor: Gholamreza Kazemian (In Persian).

14. Franks, T., 1999, Capacity building and Institutional Development: reflections on water, Public Administration and Development, 19.

15. Fukuda-Parr, S.; Lopes, C. and Malik, K., 2002, Capacity for Development: new solutions for old problems, United Nations Development Programmes, New York.

16. Ghaderi, Jafar; Akhundi, Nasser and Javid, Alireza, 2013, Urban Competitiveness; Strategy for Improving the Income Status of the City, Quarterly Journal of Urban Economics, No. 20, PP. 45-55 (In Persian).

17. Gibbs, C.; Jonas, A.; Suzanne, R. and Spooner, D., 2001, Governance, Institutional capacity and Partnership in Local Economic Development: Theoretical Issues and Empirical Evidence from the Humber, Transactions of the Institute of British Geographers, New Series, Vol. 26, No. 1.

18. Giordano, B., 2001, Institutional thickness, political sub-culture and the resurgence of the new regionalism in Italy -a case study of the Northern league in in province of Varese, Transactions of the Institute of British Geographers, Vol. 26, No. 1.

19. Griffiths, A.; Haigh, N. and Rassias, J., 2007, A Framework for Understanding Institutional Governance Systems and Climate Change: the Case of Australia, European Management Journal, Vol. 25, No. 6.

20. Healey, P., 1998, Building institutional Capacity through Collaborative Approaches to Urban Planning, Environment and Planning A, Vol. 30, PP. 1531-1546.

21. Horen, B., 2002, Planning for institutional capacity building in war-torn areas: the case of Jaffna, Sri Lanka, Habitat International, 26.

22. Hudson, R., 2004, Addressing the Regional Problem: Changing perspectives in Geography and on Regions, Paper Presented to the Conference of Irish Geographers, 7-9 May, Maynooth.

23. Hun Lee, J., 2008, Regional Governance and Collaboration: a Comparative Study on Economic Development Policy Process in Minneapolis and Pittsburgh Regions, Ph.D Dissertation, Faculty of Graduate School of Public and International Affairs, University of Pittsburgh.

24. Imbaruddin, A., 2003, Understanding Institutional Capacity of Local Government Agencies in Indonesia, Ph.D Dissertation, the Australian national University, Canberra.

25. Innes, Judith E. and Booher, David E., 2002, The Impact of Collaborative Planning on Governance Capacity, Paper prepared for presentation at the Annual Conference of the Association of Collegiate Schools of Planning, Baltimore, No. 21–24, PP. 1-32.

26. Jiang, Y. and Shen, J., 2010, Measuring the urban Competitiveness of chiness cities in 2000, Cities, No. 27, PP. 307-314.

27. Kaplan, Allan, 2010, Capacity building: Shifting the paradigms of practice, Development in Practice, Vol. 10, Issue 3-4, 2000.

28. Kargar Samani, Amir; Kordanaij, Asadaleh; Khodadad Hosseini, Hamid and Mousavi Shafaei, Massoud, 2014, The effect of urban competitiveness on national competitiveness, Business Management Perspectives Quarterly, No. 20, PP. 123-139 (In Persian).

29. Kazemian, Gholamreza; Faraji Rad, Khedr; Rokanuddin Eftekhari, Alireza and Mahdi Pourtaheri, 2013, The Relationship between Institutional Capacity and Sustainable Regional Development, Geography (International Quarterly of the Iranian Geographical Association), New Volume, Eleventh Year, Issue 38, PP. 153-173 (In Persian).

30. Kostiainen, Jaha, 2002, Learning and the “Ba” in the development network of an urban region, European Planning Studies, No. 10, PP. 613-631.

31. Kresl, P. and Singh, B., 2012, Urban Competitiveness and US Metropolitan Centers, Urban Studies, Vol. 49, No. 2, PP. 239-254.

32. Markusen, A., 2008, Human versus Physical Capital: Government s Role in Regional Development, in Martinez-Vazquez, J. and Vaillancourt, F., Public Policy for Regional Development, Routledge.

33. Martin, R.; Kitson, M. and Tyler, P., 2006, Regional Competitiveness, Routledge.

34. Meene, S. V. de., 2008, Institutional Capacity Attributes of a Water Sensitive City: the Case of Sydney, Australia, 11th International Conference on Urban Drainage, Edinburgh, Scotland, UK.

35. Nazmafar, Hossein; Eshghi Chahar Borj, Ali and Alavi, Saeedeh, 2017, A Study of the Economic Competitiveness of Iranian Cities, Journal of Economics and Urban Management, Vol. 5, No. 20, PP. 23-38 (In Persian).

36. Pengfei, Ni and Zheng, Qiongjic, 2014, Urban Competitiveness and Innovation, Edward Elgar Publishing Limited, Cheltenham, UK. Northampton, MA,USA.

37. Qingyun, Du; Yanxia, Wang; Fu, Ren; Zhiyuan, Zhao; Hongqiang, Jiu; Chao, Wu; Langjiao, Li and Yiran, Shen, 2014, Measuring and Analysis of Urban Competitiveness of Chinese Provincial Capitals in 2010 under the Constraints of Major Function-Oriented Zoning Utilizing Spatial Analysis, 6, 6, 3374-3399; doi:10.3390/su6063374.

38. Robins, L., 2008, Perspectives on capacity building to guide policy and program development and delivery, Environmental Science and Policy, II.

39. Rodriguez-Pose, A., 2009, Do Institutions Matter for Regional Development, Available at http://personal.lse.ac.Uk/PODRIGU1.

40. Sedlacek, S. and Gaube, V., 2010, Regions on Their Way to Sustainability: the Role of Institutions in Fostering Sustainable Development at Regional Level, Environment, Development and Sustainability, 12.

41. Serrano, F.A., 2003, City Competitiveness and Attractiveness: A New Approach to Evaluate Economic Development In Mexican Cities, PhD Thesis, Glasgow: University of Glasgow.

42. Singhal, S.; Berry, J. and Mcgreal, S., 2009, A Framework for Assessing Regeneration, Business Strategies and Urban Competitiveness, Local Economy, Vol. 24, No. 2, PP. 111-124.

43. Sinkiene, J., 2009. Competitiveness Factors of Cities in Lithuania, Viesoji politika ir administravimas, No.29, PP. 47-53.

44. Statistics Center of Iran, 2016, Detailed Results of the General Population and Housing Census of Zanjan and Kurdistan Provinces (In Persian).

45. Stimson, R.; Stough, R. R. and Salazar, M., 2009, Leadership and Institutions in Regional Endogenous Development, Edward Elgar.

46. Sumpor, M., 2007, Is there any Institutional Capacity for Integrated Regional Development? Application of New Governance Approaches in Croatia, 47th Congress of the European Regional Science Association, Paris, August 29th to September 2nd.

47. Tavassoli, Mahmoud and Niko Nosbati, Ali, 2011, Institutional Change, Quarterly Journal of Planning and Budget Research, Vol. 16, No. 3, PP. 5-6 (In Persian).

48. Turok, I., 2004, Cities, Regions and Competitiveness, Regional Studies, No. 38, PP. 1069-1083.

49. United Nations Economic and Social Council, 2006, Definition of basic concepts and terminologies in governance and public administration, United Nations.

50. Vahdani, Hassan, 2005, Feasibility Study of Neighborhood Development Capacities to Achieve Sustainable Urban Development (Case Study: Calcutta Chi Neighborhood) Alley Row (Tabriz), Master's Thesis in Urban Planning, Supervisor: Mojtaba Rafieian, Faculty of Art, Tarbiat Modares University (In Persian).

51. Webster, D. and Muller, L., 2000, Urban Competitiveness Assessment in Developing Country Urban Regions: The Road Forward. Initially presented at the World Bank Course on Towards a Methodology for Conducting City Development Strategies, March 29, 2000. USA, Washington D.C.

52. Willems, S. and Baumert, K., 2003, Institutional Capacity and Climate Actions, OECD.

53. World bank, 1998, Assessing Aid: what works, what doesn’t, and why, World Bank, Washington D. C.

54. World bank, 2000, Reforming Public Institutions and Strengthening Governance, World Bank, Washington D. C.

55. Zhiyuan, Yuan; Xinqi, Zheng; Lulu, Zheng and Guoliang, Zhao, 2017, Urban Competitiveness Measurement of Chinese Cities Based on a Structural Equation Model, Sustainability, Vol. 9, No. 666. PP. 1-18.