Regional industry specialisation versus regional industry diversification: what are the differences?

The study developed links between regional input-output analysis and the current research methodology utilised. In addition, this paper introduced and examined, two general regional growth strategies – industrial specialisation and industrial diversification. The study empirically investigated these strategies within the Coffs Coast region, utilising the Regional Economic Modelling and Planning System (REMPLAN). Utilising the input-output methodology linked with REMPLAN, the study examined the employment, income, and value added impacts of the two regional growth strategies from exogenous increases in demand on the Coffs Coast regional economy. The exogenous increases in demand were strictly from a hypothetical view. The findings of this research revealed that the Coffs Coast region is an already specialist regional economy – with specific focus on the retail industry which was found to be the largest industry employer within the region. In addition, the findings revealed that the industrial specialisation strategy provided the greatest industry employment, income, and value added impact to the Coffs Coast region compared to the industrial diversification strategy.