Regional Economic Development: An Introduction to Economic Geography Geography 1010A Wednesday/Friday

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Regional Economic Development:
An Introduction to Economic Geography
Geography 1010A
Wednesday/Friday
10-12 October 2007
Ian MacLachlan
http://people.uleth.ca/~maclachlan/
Questions? maclachlan@uleth.ca
1
What is economic geography?

* Economic geography studies how people
earn a living, how livelihood systems vary
by region, and how economic activities are
interconnected in space
– Empirically based: to gather information and measure
what we perceive in the real world
– Theoretically based: generalization and modelling of
processes and spatial diversity
2
Economic Geography Week

Regional Economic Structure
– Growth and Development: Case of Coalhurst
– Economic Sectors

Regional Economic Development
– Modernization Theory
– Dependency Theory
Agglomeration
 Global Assembly Line
 Global Office

3
Introduction to Regional
Development

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

Structure
Growth
Structural Change
Development
4
Structure
 “the way in which parts are arranged to
form a whole”
 Structure as a framework
 Structure as a nested hierarchy
 Economic structure
1. Classification of regional economy into sectors
2. Measure their size (count, employment, value)
3. Describe components of the structure
5
Regional Economic Structure
 Experiential introduction
 Coalhurst
 Structure
 Growth
 Development
6
Economic Structure of a Dormitory Suburb:
The Case of Coalhurst
 Town of Coalhurst: 1,523 in 2006
 Economic activity:
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1
1
1
1
1
1
1
1
1
post office
elementary school
high school
bar/restaurant
Royal Canadian Legion
gas station and convenience store
bakery
specialized lumber distributor
custom millwork & cabinetry shop
7
Suppose Coalhurst were to Grow...
A projection…a hypothetical case
 Town of Coalhurst: 1,523,000
 Economic activity:
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1,000 post offices
1,000 elementary schools
1,000 high schools
1,000 bar/restaurants
1,000 Royal Canadian Legions
1,000 gas station and convenience stores
1,000 bakeries
1,000 specialized lumber distributors
1,000 custom millwork & cabinetry shops
What would be missing?
8
Is the Population of Coalhurst Growing?
Year
Population
Population 2006
1,523
Population 2001
1,476
Population 1996
1,439
Population 1991
1,322
Percent change 2001-2006
3.2%
Percent change 1996-2001
2.5%
Percent change 1991-1996
8.9%
9
Is Coalhurst Developing?
Compare economic structure 1989-2007
 1989
 2007
 Town of Coalhurst: 1,289  Town of Coalhurst: 1,523
 Economic activity:
 Economic activity:
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1 post office
1 elementary school
1 high school
1 bar/restaurant: Trackside
1 Royal Canadian Legion
1 gas station and convenience
store
1 convenience store
1 specialized lumber distributor
1 concrete fountain
manufacturer
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1 post office
1 elementary school
1 high school
1 bar/restaurant Coalhurst Pub
1 Royal Canadian Legion
1 gas station and convenience
store
1 bakery
1 specialized lumber distributor
1 custom millwork & cabinetry
shop
Is Coalhurst Developing?
10
What do we learn from Coalhurst?
 Distinction between growth and development
 Calculated growth rates
 Structure in the context of economic
geography:
 Economic structure
 Little change between 1989 and 2007
 Slow growth but no evidence of structural
change
 How can this community be sustainable?
11
Understanding locations in space:
Site and Situation
 Site - absolute locational concept
 Physical characteristics
 Economic and cultural attributes
 Situation – relative locational concept
 External relationships with other places
 …location relative to other features
 Markets
 Services
 Employment
12
13
14
The Geography of Coalhurst
 Site: Undifferentiated prairie
 Shallow coal deposit
 Coal mine closed in 1936
 Situation: 10 minutes from Lethbridge
 Suburban satellite of Lethbridge
 Employment
 Shopping
 Services
 Residents choose Coalhurst for its lack of development
 Dependency relationship is an asset!
15
What does regional development mean?
 It depends on scale of analysis!
 Micro-scale:
 Diversification, commercial selfsufficiency, social and physical
infrastructure, and sustainability in a
volatile environment
 Macro-scale:
 Share of the world’s wealth, income,
social well-being, and human potential
16
Regional Economic Structure
How can we classify regional economic activity
as a measure of structure?
 Identify categories as a classification tool
 Let’s begin at a coarse level of aggregation
17
Quaternary
Sectoral
Classification
(information)
• Education
• Government/Administration
Tertiary
• Communications/Media
(services)
• Retail & wholesale trade
• Services
Secondary
•Personal
(transformative)
• Business (FIRE)
• Processing
Primary
• Manufacturing
• Agriculture
• Construction
• Forest products
• Power generation
• Transport/Utilities
• Mineral extraction
• Gathering industries
18
Quaternary (information)
• Education
• Government / Administration
Tertiary (services)
• Communications / Media
• Retail & wholesale trade
• Services
• Personal
Secondary
(transformative)
• Processing
• Business (FIRE)
• Transport/Utilities
Primary
• Manufacturing
• Agriculture
• Construction
• Forest products
• Power generation
• Mineral extraction
• Gathering industries
19
A Finer scale of analysis…
Don’t study this, please!
•20 sectors,
•103 subsectors,
•328 industry groups,
•728 industries and
•928 national industries
20
See white board
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So that is economic structure…
How do we get to regional economic
development ?
We could model a process!
Coarser scale:
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Primary
Secondary
Services (Tertiary & quaternary)
21
Canada’s Sectoral Employment
Structure, 1911-2001
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1911 1921 1931 1941 1951 1961 1971 1981 1991 2001
Primary
Secondary
Tertiary
22
A Model of the Economic Transition
23
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So that is economic development…
How do we get to regional economic
structure?
We could draw a map!
Let’s begin with a macro scale view
24
Macro-scale Employment Structure
Pearson School Atlas, p. 92
25
Other measures of economic
development
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Income
Human development
Gender empowerment
Let’s look at your text!
26
Gross National Product (GNP)
Per Capita, 1999
27
Human Development
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“growth from a one-celled zygote to an
adult human being”
Undefined in text
Human well-being based on some
measure of good health, ability to
participate fully in society & access to
material goods

anthropocentric ?
28
Human Development Index, 1999
HDI scores are based on
measures of life expectancy,
educational attainment, and
personal income.
29
Gender Empowerment Index, 1999
GEI scores are based on measures of
women’s incomes; LFP as adm., mgrs,
prof. and tech. workers; & women as pct
of parliamentary seats
30
To Learn More about HDI

Human Development Reports
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http://hdr.undp.org/
Nov 27 for 2007 report
Climate change as greatest challenge facing
humanity
United Nations Development Program

http://www.undp.org/
31
Provincial and Territorial Differences in
Average Earnings: Canada, 2001
32
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