october 17 - 10/17/06 Regional Development Agglomeration...

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10/17/06 Regional Development Agglomeration effects=benefits of location within an economic cluster— cost savings—(firms clustering in an area—competition with each other, benefits the consumer) External economies beyond a firm’s organization and operation Initial advantage Localized economies specific locations Functional interdependence Backward linkages—new firms come to an area and find their niche. They’re supporting existing industry. Forward linkages-new firms come into an area and take the output of the existing firms. New firms supply existing firms. Agglomeration derived by three main processes Firms can support ancillary activities- support maintenance, equipment A community of interest Fixed social capital- roads, interstates, schools, hospitals—make an area attractive for the people that are there—attract business and investment from other locations Cumulative causation Gunnar Myrdal, 1974 Positive economic spiral- growth and development Backwash effects Spread effects Negative economic spiral- if you have growth in one region,
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This note was uploaded on 04/16/2009 for the course GEOG 1101 taught by Professor Connor during the Fall '08 term at University of Georgia Athens.

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october 17 - 10/17/06 Regional Development Agglomeration...

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