Development Geography And Economic Theory Pdf
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- Development economics
- Development, Geography, and Economic Theory
- Recent trends in economic theory – implications for development geography
Economic geography is the subfield of human geography which studies economic activity. It can also be considered a subfield or method in economics. Economic geography takes a variety of approaches to many different topics, including the location of industries, economies of agglomeration also known as "linkages" , transportation , international trade , development, real estate , gentrification , ethnic economies, gendered economies, core-periphery theory, the economics of urban form , the relationship between the environment and the economy tying into a long history of geographers studying culture-environment interaction , and globalization.
There are varied methodological approaches. Neoclassical location theorists , following in the tradition of Alfred Weber , tend to focus on industrial location and use quantitative methods. Since the s, two broad reactions against neoclassical approaches have significantly changed the discipline: Marxist political economy, growing out of the work of David Harvey ; and the new economic geography which takes into account social, cultural, and institutional factors in the spatial economy.
Economists such as Paul Krugman and Jeffrey Sachs have also analyzed many traits related to economic geography. Krugman called his application of spatial thinking to international trade theory the "new economic geography", which directly competes with an approach within the discipline of geography that is also called "new economic geography". Early approaches to economic geography are found in the seven Chinese maps of the State of Qin , which date to the 4th century BC and in the Greek geographer Strabo 's Geographika , compiled almost years ago.
As cartography developed, geographers illuminated many aspects used today in the field; maps created by different European powers described the resources likely to be found in American, African, and Asian territories. The earliest travel journals included descriptions of the native peoples, the climate, the landscape, and the productivity of various locations.
These early accounts encouraged the development of transcontinental trade patterns and ushered in the era of mercantilism. World War II contributed to the popularization of geographical knowledge generally, and post-war economic recovery and development contributed to the growth of economic geography as a discipline. During environmental determinism 's time of popularity, Ellsworth Huntington and his theory of climatic determinism , while later greatly criticized, notably influenced the field.
Other influential theories include Walter Christaller 's Central place theory , the theory of core and periphery. Fred K. Schaefer 's article "Exceptionalism in geography: A Methodological Examination", published in the American journal Annals of the Association of American Geographers , and his critique of regionalism, made a large impact on the field: the article became a rallying point for the younger generation of economic geographers who were intent on reinventing the discipline as a science, and quantitative methods began to prevail in research.
Contemporary economic geographers tend to specialize in areas such as location theory and spatial analysis with the help of geographic information systems , market research, geography of transportation, real estate price evaluation, regional and global development, planning, Internet geography , innovation, social networks. As economic geography is a very broad discipline, with economic geographers using many different methodologies in the study of economic phenomena in the world some distinct approaches to study have evolved over time:.
Economic geography is sometimes approached as a branch of anthropogeography that focuses on regional systems of human economic activity. Spatiotemporal systems of analysis include economic activities of region, mixed social spaces, and development.
Alternatively, analysis may focus on production, exchange, distribution, and consumption of items of economic activity. Allowing parameters of space-time and item to vary, a geographer may also examine material flow, commodity flow, population flow and information flow from different parts of the economic activity system.
Through analysis of flow and production, industrial areas, rural and urban residential areas, transportation site, commercial service facilities and finance and other economic centers are linked together in an economic activity system. It is traditionally considered the branch of economic geography that investigates those parts of the Earth's surface that are transformed by humans through primary sector activities.
It thus focuses on structures of agricultural landscapes and asks for the processes that lead to these spatial patterns. While most research in this area concentrates rather on production than on consumption, a distinction can be made between nomothetic e.
The latter approach of agricultural geography is often applied within regional geography. These areas of study may overlap with other geographical sciences. Generally, spatially interested economists study the effects of space on the economy. Geographers, on the other hand, are interested in the economic processes' impact on spatial structures.
Moreover, economists and economic geographers differ in their methods in approaching spatial-economic problems in several ways. An economic geographer will often take a more holistic approach to the analysis of economic phenomena, which is to conceptualize a problem in terms of space, place, and scale as well as the overt economic problem that is being examined.
The economist approach, according to some economic geographers, has the main drawback of homogenizing the economic world in ways economic geographers try to avoid. Industries have different patterns of economic geography. Extractive industries tend to be concentrated around their specific natural resources. In Norway, for example, most oil industry jobs occur within a single electoral district. Industries are geographically concentrated if they do not need to be close to their end customers, such as the automotive industry concentration in Detroit, US.
Agriculture also tends to be concentrated. Industries are geographically diffuse if they need to be close to their end customers, such as hairdressers, restaurants, and the hospitality industry. With the rise of the New Economy , economic inequalities are increasing spatially. The New Economy, generally characterized by globalization, increasing use of information and communications technology, the growth of knowledge goods, and feminization, has enabled economic geographers to study social and spatial divisions caused by the rising New Economy, including the emerging digital divide.
The new economic geographies consist of primarily service-based sectors of the economy that use innovative technology, such as industries where people rely on computers and the internet. Within these is a switch from manufacturing-based economies to the digital economy. In these sectors, competition makes technological changes robust. These high technology sectors rely heavily on interpersonal relationships and trust, as developing things like software is very different from other kinds of industrial manufacturing—it requires intense levels of cooperation between many different people, as well as the use of tacit knowledge.
As a result of cooperation becoming a necessity, there is a clustering in the high-tech new economy of many firms. As characterized through the work of Diane Perrons,  in Anglo-American literature, the New Economy consists of two distinct types.
It seeks to explain uneven development and the emergence of industrial clusters. It does so through the exploration of linkages between centripetal and centrifugal forces, especially those of economies of scale. New Economic Geography 2 NEG2 also seeks to explain the apparently paradoxical emergence of industrial clusters in a contemporary context, however, it emphasizes relational, social, and contextual aspects of economic behaviour, particularly the importance of tacit knowledge.
The main difference between these two types is NEG2's emphasis on aspects of economic behaviour that NEG1 considers intangible. Both New Economic Geographies acknowledge transport costs, the importance of knowledge in a new economy, possible effects of externalities, and endogenous processes that generate increases in productivity.
The two also share a focus on the firm as the most important unit and on growth rather than development of regions. As a result, the actual impact of clusters on a region is given far less attention, relative to the focus on clustering of related activities in a region. However, the focus on the firm as the main entity of significance hinders the discussion of New Economic Geography.
It limits the discussion in a national and global context and confines it to a smaller scale context. It also places limits on the nature of the firm's activities and their position within the global value chain. Further work done by Bjorn Asheim and Gernot Grabher challenges the idea of the firm through action-research approaches and mapping organizational forms and their linkages. In short, the focus on the firm in new economic geographies is undertheorized in NEG1 and undercontextualized in NEG2, which limits the discussion of its impact on spatial economic development.
Spatial divisions within these arising New Economic geographies are apparent in the form of the digital divide , as a result of regions attracting talented workers instead of developing skills at a local level see Creative Class for further reading. Despite increasing inter-connectivity through developing information communication technologies, the contemporary world is still defined through its widening social and spatial divisions, most of which are increasingly gendered.
Danny Quah explains these spatial divisions through the characteristics of knowledge goods in the New Economy: goods defined by their infinite expansibility, weightlessness, and nonrivalry. Social divisions are expressed through new spatial segregation that illustrates spatial sorting by income, ethnicity, abilities, needs, and lifestyle preferences. Employment segregation is evidence by the overrepresentation of women and ethnic minorities in lower-paid service sector jobs.
These divisions in the new economy are much more difficult to overcome as a result of few clear pathways of progression to higher-skilled work. From Wikipedia, the free encyclopedia.
For the journal, see Economic Geography journal. History of Geography. Human Geography. Physical Geography. Integrated Geography. Fields Environmental geography Environmental social science Environmental science Environmental studies Landscape architecture Landscape ecology Time geography. Applied Geography. Index Outline Category. History Branches Classification.
History of economics Schools of economics Mainstream economics Heterodox economics Economic methodology Economic theory Political economy Microeconomics Macroeconomics International economics Applied economics Mathematical economics Econometrics.
Concepts Theory Techniques. Economic systems Economic growth Market National accounting Experimental economics Computational economics Game theory Operations research Middle income trap Industrial complex. By application. Notable economists. Glossary of economics. This section needs additional citations for verification.
Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. May Learn how and when to remove this template message. Clark; Maryann P. Feldman; Meric S. Gertler, eds. The Oxford Handbook of Economic Geography. Oxford University Press. Scroll to chapter-preview links. Durlauf and L. Blume, ed. Sachs and Gordon McCord.
Vernon Henderson. Ioannides and Esteban Rossi-Hansberg. An Introduction to Geographical Economics. Social Networks.
Development, Geography, and Economic Theory
Next Articles. Krugman defined the New Economic Geography as the location theory of production, just as the concept of the classical location theory, which is proposed to explain the mechanism of formation and evolution of the economic spatial structure. The New Economic Geography theory of Krugman, scattered in his several books, is summed up as follows: a main idea, four propositions, four tools and three models. In order to analyze more clearly the process of formation and evolution of economic spatial structure, Krugman puts forward four propositions: 1 Transportation Costs play a key role in international trade and inter-regional trade; 2 Spatial agglomeration of interrelated economic activity could achieve cost-saving and benefit-increasing; 3 The cost-saving and benefit-increasing from the economic spatial agglomeration could promote the further concentration of economic development; 4 Early-development advantage could lead to the long-term accumulation of economic activity. Dixit and J. The New Economic Theory of Krugman is a new development of Economic Geography under new situation, which can deal with the difficult problem in economic location study which has not been solved by traditional Economic Geography.
Paul Krugman argues that the unwillingness of mainstream economists to think about what they could not formalize led them to ignore ideas that turn out, in.
Development economics is a branch of economics which deals with economic aspects of the development process in low income countries. Its focus is not only on methods of promoting economic development , economic growth and structural change but also on improving the potential for the mass of the population, for example, through health, education and workplace conditions, whether through public or private channels. Development economics involves the creation of theories and methods that aid in the determination of policies and practices and can be implemented at either the domestic or international level. Unlike in many other fields of economics, approaches in development economics may incorporate social and political factors to devise particular plans. The earliest Western theory of development economics was mercantilism , which developed in the 17th century, paralleling the rise of the nation state.
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Reinert, Erik S. Development geography and mainstream economic theory have for many years lived separate lives. The geographical dimension - the location of production in space - has completely disappeared from neo-classical economic theory.
Recent trends in economic theory – implications for development geography
It is argued that the extension of trade theory to geographical economics has widened the scope of analysis of economic interaction between different countries or regions , but that the NEG still has some way to go in exploring the role of space. Transport costs have mostly been introduced in an ad-hoc fashion, but there are first attempts to endogenize them in terms of market prices for trade services. The location of production
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