GEO 101 Chapter Notes - Chapter 8: Economies Of Agglomeration, Social Capital, Deindustrialization
4 May 2016
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Some regions initial disadvantage constrain the opportunities of individuals born there. Low educational attainment and lack of infrastructure can account for some of this inequality. Globalization is associated with increasing regional inequality. Geographical pattern dependence: relationship between present-day activities in a place and past experiences of that place. Initial advantage: highlights the importance of an early start in economic development. External economies: existing labor markets, existing consumer markets, existing frameworks of fixed social capital. Localization economies: cost savings that accrue to particular industries as a result of clustering together at a specific location. Ex: sharing a pool of labor with special skills or experience, supporting specialized technical schools, joining to create a marketing organization or a research institute and drawing on specialized subcontractors. Agglomeration effect: associated with various kinds of economic linkages and interdependencies. Cost advantages that accrue to individual firms because of their location among functionally related activities.
