Economic Geography and the Gravity Model

The concept that some outlet factors directly promote growth, while prospect factors influence growth indirectly.

A dynamic system where two elements influence each other in opposite directions: one element's increase leads to the other's decrease, and vice versa, resulting in a state of balance.

The idea that increased population density can lead to negative feedback by making outbreaks of diseases more likely, ultimately limiting growth.

An economic model that uses the concept of gravity to represent the influence of distance and economic size on trade between countries.

In the gravity model, distance between countries represents transportation costs, a key factor in trade volume.

The amount of trade between two countries is influenced by their respective GDPs and the distance between them.

The gravity model highlights how geography and space are important elements to consider in economic analysis.

The gravity model emphasizes that transportation costs are a significant factor in international trade.

A measure of the relative specialization of a region in a particular industry compared to the national average. It's calculated by dividing the share of the industry's employment in the region by the industry's share of national employment.

A group of industries that are interconnected and mutually supportive, often located in close proximity to each other.

The proportion of a region's employment in a particular industry compared to the region's total employment.

People working in creative occupations within creative industries, including those working in other sectors but contributing to creative activities.

The sum of the squares of the shares of an industry in each region, measuring how concentrated an industry is in specific locations.

Regions defined based on administrative boundaries, like states or provinces, regardless of economic factors.

Regions defined based on economic connections and interactions, reflecting actual business and trade relationships.

The number of firms, employees, or sales in a specific industry within a region, providing an absolute measure of the industry's presence.

The percentage of a specific industry's total activity in a region compared to the national total, highlighting the local share of that industry.

A measure of the absolute presence of an industry in a region, considering the size of the regional population.

A measure of absolute presence, comparing the industry's activity in a region to the region's total employment, accounting for the region's industrial size.

A measure of absolute presence, comparing the industry's activity in a region to the national total of that industry, gauging the regional concentration of the industry.

A problem that arises when comparing industries across regions with different population sizes, leading to overestimation of clusters in larger areas.

Measures that adjust for population size or other factors, ensuring a fair comparison of industrial activity across regions with varying sizes.

A settlement that offers goods and services to the surrounding population, categorized by the level of services offered.

Settlements that provide only basic services, like grocery stores or newsagents.

Settlements that offer specialized services, like consultancy firms or universities, often found in larger cities.

The maximum distance people are willing to travel to acquire a specific good or service.

The theoretical model assumes a perfectly flat and homogeneous landscape, with equal soil fertility and transportation networks.

The theory predicts that the larger the settlement, the fewer similar settlements there will be, and the farther apart they are.

As the population of a settlement increases, the range of goods and services offered also increases.

The central place theory uses hexagonal regions to represent the areas served by different settlements, each with a unique range of influence.

The larger the difference between the cumulative share of a specific industry and the overall manufacturing share in a region, the greater the industry's spatial concentration in that area. A perfectly equal distribution would result in a zero difference, indicating no specific concentration.

A measure of how unevenly a specific industry is distributed across regions. It is calculated by taking half the absolute difference between the shares of the industry and total manufacturing in each region, and summing across all regions. A higher Gini coefficient indicates greater inequality and spatial concentration.

The proportion of a region's share in the total production, exports, or trade of an individual industry. A high concentration means a significant share of that industry's activity occurs in a few specific regions.

A measure of a region's specialization in a particular industry, calculated by dividing the share of the industry's employment in the region by the industry's share of national employment. An LQ above 1 indicates a region is specialized in that industry.

The concept that regional specialization and geographic industrial concentration are interconnected. One influences the other, as a region's specialization in an industry often leads to higher concentration of that industry in the region.

The distribution of a specific industry across different regions, influenced by factors like resources, infrastructure, labor costs, and market proximity. It reflects how the industry is spatially organized.

A measure of how evenly distributed an industry is across different regions. A higher index indicates greater inequality, meaning the industry is concentrated in a few regions.

A concept that studies the spatial distribution of a specific industry sector, analyzing how specific industries concentrate across different geographical areas.

Analyzing the spread of a broader group of industries, like the entire manufacturing sector, across locations.

A high concentration of industries in specific areas, creating a core, while other regions, the periphery, are left with limited industry development.

An economic system where regions are self-sufficient, producing all goods they consume, with low industry concentration.

A strong presence of specialized industries clustered in a specific region.

Regions with high specialization in a particular industry, but low concentration, often due to natural resource distribution.

The movement of workers between countries in the EU is much more limited than in the US.

High homeownership in Italy has contributed to the immobility of labor as people are less likely to relocate due to owning their house.