Abstract:

Development strategies of economic policy area stress the ever increasing significance of local development day by day. Local development initiatives have come fore following the thought that local structures and processes maximize the positive effects of globalization while they also minimize its adverse effects at the same time. The relationship between local development and employment creation can be explained by industrial ties and multiplier theory. The theory puts forward that a factor that cause local multiplier effect with respect to employment not only leads to employment increase in its own industry but also in other industries as well. Contrary to employment creation, informal employment is a threat for local economy. Because, it does not match up with the goals of local development since it is common in urban areas and potentially obtain workforce from communities which are aimed at for local development. Informal employment is discussed under the concept of non-standard employment. Non-standard working population also refers to individuals with the potential of working in informal economy. This paper aims to discuss local development by conceptually and theoretically while it attempts to demonstrate the role of local development strategies in increasing employment and decreasing informal employment

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