On the fringe: barriers to participation in the new economy in regional areas

Electronic commerce offers tools which potentially support the development and re-invigoration of regional economies because of their ability to link enterprises and labour markets in networks across dispersed geographical areas. However, the evidence that regional areas of Australia benefit from this development in accordance with optimistic forecasts of the potential is, at best, mixed. This paper examines the constraints on the development of IT-based activity in regional areas and identifies barriers to full participation of those areas in Australia. It argues that regional areas are unlikely to benefit from the ‘new economy’ without a major changes in government thinking about regional development.