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Questions and Answers
What best describes the concept of negative feedback in Diamond's Hypothesis?
What best describes the concept of negative feedback in Diamond's Hypothesis?
In the context of the Gravity Model, how is space defined?
In the context of the Gravity Model, how is space defined?
Which statement reflects the relationship between trade and distance according to the Gravity Equation?
Which statement reflects the relationship between trade and distance according to the Gravity Equation?
What is a potential negative effect of population density as mentioned in the context of epidemic diseases?
What is a potential negative effect of population density as mentioned in the context of epidemic diseases?
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How is transportation cost related to trade according to the Gravity Model?
How is transportation cost related to trade according to the Gravity Model?
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Which factor does NOT contribute to the Gravity Equation for trade between two countries?
Which factor does NOT contribute to the Gravity Equation for trade between two countries?
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What historical example is given to illustrate the impact of trade on epidemic diseases?
What historical example is given to illustrate the impact of trade on epidemic diseases?
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What aspect of traditional economics was highlighted as missing until more recent models like the Gravity Model?
What aspect of traditional economics was highlighted as missing until more recent models like the Gravity Model?
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What is the primary advantage of using an endogenous definition of regions over an exogenous definition?
What is the primary advantage of using an endogenous definition of regions over an exogenous definition?
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How do local percentages assist in understanding industry distribution across regions?
How do local percentages assist in understanding industry distribution across regions?
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What does the size-bias problem in data analysis refer to?
What does the size-bias problem in data analysis refer to?
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What do absolute measures indicate when analyzing regional industries?
What do absolute measures indicate when analyzing regional industries?
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What does the location quotient measure in relation to a region?
What does the location quotient measure in relation to a region?
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Why is the ‘working age’ factor significant when using population-based indicators in data analysis?
Why is the ‘working age’ factor significant when using population-based indicators in data analysis?
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What is a key limitation of relative measures, including the location quotient?
What is a key limitation of relative measures, including the location quotient?
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What role does comparison with national averages play in industry analysis?
What role does comparison with national averages play in industry analysis?
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In calculating local percentages, what does the denominator represent?
In calculating local percentages, what does the denominator represent?
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How does the total employment measure improve upon simpler population-based approaches?
How does the total employment measure improve upon simpler population-based approaches?
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What is the primary focus of concentration in economic analysis?
What is the primary focus of concentration in economic analysis?
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How does agglomeration differ from concentration?
How does agglomeration differ from concentration?
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What does autarchy describe in terms of regional economic specialization?
What does autarchy describe in terms of regional economic specialization?
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Which dynamic results in a high concentration of industry at the core and a starving periphery?
Which dynamic results in a high concentration of industry at the core and a starving periphery?
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What term describes a highly specialized economy with concentrated industries?
What term describes a highly specialized economy with concentrated industries?
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What is a significant barrier to labor movement within the EU?
What is a significant barrier to labor movement within the EU?
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What is a consequence of high specialization with low concentration in an economy based on natural resources?
What is a consequence of high specialization with low concentration in an economy based on natural resources?
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What is primarily analyzed when considering agglomeration in economic terms?
What is primarily analyzed when considering agglomeration in economic terms?
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What characterizes an ideal region in terms of soil and physical barriers?
What characterizes an ideal region in terms of soil and physical barriers?
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What is the relationship between the size of a settlement and the number of similar settlements nearby?
What is the relationship between the size of a settlement and the number of similar settlements nearby?
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Which type of settlement provides the most basic services, characteristic of the lowest order?
Which type of settlement provides the most basic services, characteristic of the lowest order?
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What distinguishes high order services from low order services in a central place?
What distinguishes high order services from low order services in a central place?
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What is the term used for the maximum distance a person is willing to travel to acquire goods and services?
What is the term used for the maximum distance a person is willing to travel to acquire goods and services?
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Based on the principles discussed, what happens to the range of services as the population increases?
Based on the principles discussed, what happens to the range of services as the population increases?
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How are the hexagonal regions in the model related to central places?
How are the hexagonal regions in the model related to central places?
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Which statement best describes the distribution of purchasing power in an ideal region?
Which statement best describes the distribution of purchasing power in an ideal region?
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What does a larger Gini Coefficient signify in terms of industrial distribution?
What does a larger Gini Coefficient signify in terms of industrial distribution?
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How is regional specialization primarily defined?
How is regional specialization primarily defined?
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Which of the following statements accurately describes industrial concentration?
Which of the following statements accurately describes industrial concentration?
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In the context of the Krugman-Gini Index, what would indicate a positive difference?
In the context of the Krugman-Gini Index, what would indicate a positive difference?
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What does the Location Quotient measure in comparison to the Krugman-Gini Index?
What does the Location Quotient measure in comparison to the Krugman-Gini Index?
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If a region has a high share of the paper industry in its total manufacturing, it is classified as:
If a region has a high share of the paper industry in its total manufacturing, it is classified as:
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Which of the following mathematical expressions defines the measure of normalized Herfindahl?
Which of the following mathematical expressions defines the measure of normalized Herfindahl?
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What is suggested about industries that are highly specialized?
What is suggested about industries that are highly specialized?
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What does it imply if industry i is distributed exactly like total manufacturing at the regional level?
What does it imply if industry i is distributed exactly like total manufacturing at the regional level?
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Regional specialization can also be measured by its impact on which other area?
Regional specialization can also be measured by its impact on which other area?
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What does a location quotient greater than 1 indicate about a region's economy?
What does a location quotient greater than 1 indicate about a region's economy?
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What should be considered when analyzing the location quotient in regions with low manufacturing?
What should be considered when analyzing the location quotient in regions with low manufacturing?
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Which factor does the ideal index of Spatial Concentration (SC) depend on?
Which factor does the ideal index of Spatial Concentration (SC) depend on?
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How is the Herfindahl Index calculated?
How is the Herfindahl Index calculated?
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What does the Spatial Concentration ratio measure?
What does the Spatial Concentration ratio measure?
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What is indicated by a Herfindahl Index value of 1?
What is indicated by a Herfindahl Index value of 1?
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What relationship should be examined to improve a region's specialization?
What relationship should be examined to improve a region's specialization?
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Why might official statistics underestimate creative employment in a country?
Why might official statistics underestimate creative employment in a country?
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Which of the following is an implication of a location quotient less than 1?
Which of the following is an implication of a location quotient less than 1?
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What can be inferred if the number of areas where an industry exists is small?
What can be inferred if the number of areas where an industry exists is small?
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Study Notes
Economic Geography
- Economic geography studies the location, distribution, and spatial organization of economic activities globally.
- It's a traditional subfield of geography, but economists also approach it through an economic lens.
- Various approaches exist, including industry location, agglomeration economies, transportation, international trade, development, urban economics, and the relationship between the economy and the environment.
- Economic development is uneven across geographic scales.
Course Content
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What is Economic Geography?: Introduces concepts of economic geography, issues, and methods.
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Why Economic Geography Matters?: Highlights the significance of economic geography with regards to economic activities.
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Stylised Facts:
- Location patterns of economic activities, agglomeration (concentration), and specialization.
- International and intra-regional economic flows.
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Models:
- Classical location theory.
- New economic geography.
- Theories of path dependence and evolutionary geography.
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Empirical Evidence: Provides factual data about economic issues.
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Policy Implications: Offers solutions to economic problems.
Adam Smith
- Limited division of labor by market extent.
- Limited international trade in Africa due to lack of large inlets and rivers.
- Loss in productivity due to time spent going from one division of labor (manufacturing sector) to another.
- Africa's low ratio of coastline to inland area limits market size, contrasted with Europe.
Diamond's Hypothesis
- Eurasian development was accelerated by an east-west axis allowing for easier species and technology transfer, in contrast to the north-south axis of Africa and the Americas, which limited this.
- Domestication of plants and animals, early villages and food production = crucial factors in the development of stratified societies.
- Technological advancements arise first because of food surplus and storage which allow for sedentary and stratified societies. These societies also gave rise to and improved technology.
- A positive feedback loop was created where societies could develop further because of the advancements they made, providing more resources to further support those advancements.
Gravity Model
- A spatial economic model in which the flow of trade or exports between countries is a function of their economic sizes and distance.
- The larger a country's economy (GDP), and the closer it is to another country, the greater the flow of exports.
- Distance, in this model, can be a proxy for transportation costs
Clustering
- What is Clustering?: The concentration of economic activity (ex. firms) in specific locations.
- Types:
- Clustering: firms tend to concentrate in particular locations.
- Avoidance: firms try to keep as much distance as possible between each other.
- Independence: no obvious pattern or tendency.
- Data: Economic activities are studied at varying geographic and industry levels of aggregation to avoid issues.
Theories of Clustering
- Classical location theory.
- General equilibrium models.
- Strategic interaction models.
- New economic geographic approaches.
- Industrial geography.
- Porter's competitive advantage framework.
- Jacobs urban variety models.
- Path dependence theory: Historical accidents and early events often have disproportionately large effects on subsequent outcomes.
- Ecological/biological models: Analogy drawing from the behavior of biological systems for understanding complexity and the dynamic nature of industries and clusters.
Measures of Spatial Inequality
- Spatial Coefficient of variation: A measure of the dispersion of an industry in a given region. Values of 0 mean uniform distribution while high values indicate uneven spread.
- Gini Coefficient: A broader measure of economic inequality, as well as spatial/locational inequality. It generally ranges between 0 and 1, with higher values indicating greater inequality.
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Description
Explore the intricate relationships in economic geography through questions about the Gravity Model and its implications for trade and population density. Test your understanding of concepts such as negative feedback, transportation costs, and the connection between trade and epidemic diseases.
