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AnIntroductiontoRegionalEconomicsEdgarM.HooverandFrankGiarratani1Introduction1.1WHATISREGIONALECONOMICS?Economicsystemsaredynamicentities,andthenatureandconsequencesofchangesthattakeplaceinthesesystemsareofconsiderableimportance.Suchchangeaffectsthewell-beingofindividualsandultimatelythesocialandpoliticalfabricofcommunityandnation.Associalbeings,wecannothelpbutreacttothechangesweobserve.Forsomepeoplethatreactionisquitepassive;theeconomychanges,andtheyfindthattheirimmediateenvironmentissomehowdifferent,forcingadjustmenttothenewreality.Forothers,changesintheeconomicsystemrepresentachallenge;theyseektounderstandthenatureoffactorsthathaveledtochangeandmay,inlightofthatknowledge,adjusttheirownpatternsofbehaviororattempttobringaboutchangeintheeconomic,political,andsocialsystemsinwhichtheyliveandwork.Inthiscontext,regionaleconomicsrepresentsaframeworkwithinwhichthespatialcharacterofeconomicsystemsmaybeunderstood.Weseektoidentifythefactorsgoverningthedistributionofeconomicactivityoverspaceandtorecognizethatasthisdistributionchanges,therewillbeimportantconsequencesforindividualsandforcommunities.Thus,regionalor"spatial"economicsmightbesummedupinthequestion"Whatiswhere,andwhy—andsowhat?"Thefirstwhatreferstoeverytypeofeconomicactivity:notonlyproductionestablishmentsinthenarrowsenseoffactories,farms,andmines,butalsootherkindsofbusinesses,households,andprivateandpublicinstitutions.Wherereferstolocationinrelationtoothereconomicactivity;itinvolvesquestionsofproximity,concentration,dispersion,andsimilarityordisparityofspatialpatterns,anditcanbediscussedeitherinbroadterms,suchasamongregions,ormicrogeographically,intermsofzones,neighborhoods,andsites.Thewhyandthesowhatrefertointerpretationswithinthesomewhatelasticlimitsoftheeconomist'scompetenceanddaring.Regionaleconomicsisarelativelyyoungbranchofeconomics.Itslatestartexemplifiestheregrettabletendencyofformalprofessionaldisciplinestolosecontactwithoneanotherandtoneglectsomeimportantproblemareasthatrequireamixtureofapproaches.Untilfairlyrecently,traditionaleconomistsignoredthewherequestionaltogether,findingplentyofproblemstooccupythemwithoutgivinganyspatialdimensiontotheiranalysis.Traditionalgeographers,thoughdirectlyconcernedwithwhatiswhere,lackedanyrealtechniqueofexplanationintermsofhumanbehaviorandinstitutionstosupplythewhy,andresortedtomeredescriptionandmapping.Traditionalcityplanners,similarlylimited,remainedpreoccupiedwiththephysicalandaestheticaspectsofidealizedurbanlayouts.Thisunfortunatesituationhasbeencorrectedtoaremarkableextentwithinthelastfewdecades.Individualswhocallthemselvesbyvariousprofessionallabels—economists,geographers,ecologists,cityandregionalplanners,regionalscientists,andurbanists—havejoinedtodevelopanalyticaltoolsandskills,andtoapplythemtosomeofthemostpressingproblemsofthetime.TheunflaggingpioneerworkandtheintellectualandorganizationalleadershipofWalterIsardsincethe1940splayedakeyroleinenlistingsupportfromvariousdisciplinestocreatethisnewfocus.Hisdomainof"regionalscience"isextremelybroad.Thisbookwillfollowalesscomprehensiveapproach,usingthespecialinterestsandcapabilitiesoftheeconomistasapointofdeparture.1.2THREEFOUNDATIONSTONESItwillbehelpfultorealizeattheoutsetthatthreefundamentalconsiderationsunderliethecomplexpatternsoflocationofeconomicactivityandmostofthemajorproblemsofregionaleconomics.Thefirstofthese"foundationstones"appearsinthesimplisticexplanationsofthelocationofindustriesandcitiesthatcanstillbefoundinold-stylegeographybooks.WineandmoviesaremadeinCaliforniabecausethereisplentyofsunshinethere;NewYorkandNewOrleansaregreatportcitiesbecauseeachhasanaturalwater-levelroutetotheinteriorofthecountry;easilydevelopablewaterpowersiteslocatedtheearlymilltownsofNewEngland;andsoon.Inotherwords,theunequaldistributionofclimate,minerals,soil,topography,andmostothernaturalfeatureshelpstoexplainthelocationofmanykindsofeconomicactivity.Abitmoregenerallyandinthemorepreciseterminologyofeconomictheory,wecanidentifythecompleteorpartialimmobilityoflandandotherproductivefactorsasoneessentialpartofanyexplanationofwhatiswhere.Suchimmobilityliesattheheartofthecomparativeadvantagethatvariousregionsenjoyforspecializationinproductionandtrade.Thisis,however,bynomeansanadequateexplanation.Oneofthepioneersofregionaleconomics,AugustL?sch,sethimselfthequestionofwhatkindoflocationpatternsmightlogicallybeexpectedtoappearinanimaginaryworldinwhichallnaturalresourcedifferentialswereassumedaway,thatis,inauniformlyendowedflatplain.1Insuchasituation,onemightconceivablyexpect(1)concentrationofallactivitiesatonespot,(2)uniformdispersionofallactivitiesovertheentirearea(thatis,perfecthomogeneity),or(3)nosystematicpatternatall,butarandomscatterofactivities.Whatdoesactuallyappearasthelogicaloutcomeisnoneofthese,butanelaborateandinterestingregularpatternsomewhatakintovariouscrystalstructuresandshowingsomerecognizablesimilaritytoreal-worldpatternsofdistributionofcitiesandtowns.WeshallhavealookatthispatterninChapter8.WhattheChristaller-L?schtheoreticalexercisesdemonstratedwasthatfactorsotherthannatural-resourcelocationplayanimportantpartinexplainingthespatialpatternofactivities.Indevelopinghisabstractmodel,L?schassumedjusttwoeconomicconstraintsdetermininglocation:(1)economiesofspatialconcentrationand(2)transportcosts.Thesearethesecondandthirdessentialfoundationstones.Economistshavelongbeenawareoftheimportanceofeconomiesofscale,particularlysincethedaysofAdamSmith,andhaveanalyzedthemlargelyintermsofimperfectdivisibilityofproductionfactorsandothergoodsandservices.Theeconomiesofspatialconcentrationintheirturncan,asweshallseeinChapter5andelsewhere,betracedmainlytoeconomiesofscaleinspecificindustries.Finally,goodsandservicesarenotfreelyorinstantaneouslymobile:Transportandcommunicationcostsomethingineffortandtime.Thesecostslimittheextenttowhichadvantagesofnaturalendowmentoreconomiesofspatialconcentrationcanberealized.Tosumup,anunderstandingofspatialandregionaleconomicproblemscanbebuiltonthreefactsoflife:(1)natural-resourceadvantages,(2)economiesofconcentration,and(3)costsoftransportandcommunication.Inmoretechnicallanguage,thesefoundationstonescanbeidentifiedas(1)imperfectfactormobility,(2)imperfectdivisibility,and(3)imperfectmobilityofgoodsandservices.策1.3R茅EGION鷹ALEC羊ONOMI炭CPRO樣BLEMS末AND灘THEP明LANO肥FTHI驕SBOO撫K溝What,可then穩(wěn),are掏the蔬actua來lpro鵲blems卡inw反hich散anun駛derst梯andin離gof男spati叔alec證onomi姿csca錢nbe汗helpf鐵ul?T章heya叢rise,羽asw晝esha虜llse眾e,on掉seve奶rald源iffer眼entl緒evels辮.Som垂eare飲prim恩arily遞micr拖oecon聯(lián)omic,鐮invo遞lving炸the局spati吐alpr菜efere只nces,膀deci哨sions要,and裕expe膏rienc順esof崗such雙unit牧sas鑒house腥holds偏orb圍usine要ssfi嫩rms.愈Other腫sinv質(zhì)olve守theb輕ehavi將orof艙larg盯egro躍upso許fpeo報ple,衛(wèi)whole墓indu困strie鏡s,or錢such鞠area蜘sas噴citie筑sor尼regio捎ns.T促ogiv飲esom廉eide花aof盾ther覆ange亮ofqu綱estio遍nsin神volve賞dand魂also煌the待appro縫acht樸hatt稱hisb罪ookt剪akes銀inde巨velop或inga麥conc魚eptua螞lfra班mewor忠kto朋handl如ethe駱m,we悲shal崗lfol輝lowh逼erea腰sequ灶ence攏corre葉spond京ingt購othe題succ望essiv灑elat織erch沾apter構(gòu)s.膊Theb銳usine憲ssfi挎rmis皆,of臂cours豈e,mo朽stdi遇rectl癢yint泉erest澇edin童what返regi桌onal枕econo制mics縣mayh梯avet劫osay歌abou揪tcho剝osing刺apr紹ofita慘blel洗ocati做onin端rela祥tion績togi內(nèi)venm縣arket季s,so霸urces充ofm誼ateri怒als,誰labor傳,ser濾vices輕,and稍othe蒙rrel董evant洪loca分tion斥facto協(xié)rs.A溜nonb宋usine屈ssun躬itsu另chas惕aho膜useho糠ld,i壇nstit瓣ution匠,or曲publi欠cfac較ility賄face烈san床analo妄gous暗probl忠emof象loca來tion涌choic課e,th擔(dān)ough紡thes被pecif爽iclo悅catio除nfac駕tors舅tobe理cons趁idere炸dmay角ber虜ather環(huán)diff孟erent呆and固less璃subje碧ctto擾eval枝uatio星nin壇terms有ofp胞rice瘡andp其rofit稻.Our腐surv裁eyof滿regi駕onal耕econo散mics漆begin狡sin攀Chapt汽er2滿byt動aking麥ami豎croec倦onomi伯cvie脫wpoin皮t.Th出atis鐵,all至loca銹tions協(xié),con航ditio調(diào)ns,a墳ndac括tivit我ieso臘ther宵than藏thei盈ndivi劇dual準(zhǔn)unit昆inqu層estio不nwil利lbe腫taken砍asg嗽iven:素The丹indiv拜idual派unit恐'spr終oblem葡ist貓odec瓦idew掌hatl香ocati平onit三pref斃ers.杰Thei去mport深ance柿oftr塞anspo啟rtan乓dcom武munic孩ation基serv倉ices呢inde擱termi工ning緒locat遮ions離(one丟ofth框ethr拒eefo就undat殺ions循tones帳)wil鑄lbec陰omee慶viden興tin泰Chapt綁er2.抄The姓relat帶iono瘋fdis黃tance林tot擾heco贏stof嫩the尺spati在almo襲vemen兼tof唐goods配and淋servi堅ces,之howev禾er,i芳snot邊simp炭le.I省tdep毛ends凡onsu太chfa炊ctors鎮(zhèn)asr按oute強layou些ts,s憂cale門econo階mies撥inte癥rmina汁land么carr子iage緞opera件tions謊,the疾leng鳳thof嗚the愧journ盡ey,t殼hech壇aract吧erist僅icso炮fthe蝦good恥sand彈serv竊ices未trans姨ferre澆d,an晚dthe問tech例nical添capa莫bilit記ieso乳fthe濃avai褲lable槐tran蛛sport攀and悶commu客nicat蠶ionm鍋edia.睛廳Chapt染er3逐iden穿tifie廊sand校expl茂ains守such承relat咸ions陷andw費ille長xplor安ethe珍iref冊fects識ont驕head怪vanta糊geso艙fdif讀feren索tloc謝ation所s.號In播Chapt給er4睬,an萄analy刮siso倡fpri擦cing短decis慕ions短andd輛emand慶ina跨spat另ialc詳ontex直tis她devel慰oped.哭This睜anal坊ysis瞇exten饑dsso扭mepr運incip鐮leso梢feco循nomic訂scon良cerni圣ngth榮ethe臘oryo煮fpri蝶cing震ando贏utput叢deci豎sions寶tot攔hesp榨atial噸dime蠟nsion隊.As鋸ares初ult,想wesh風(fēng)allb蟻eabl栗eto昏appre毅ciate并more鼓full譽ythe急rela蒙tions惠hipb割etwee少npri納cing鴿polic延iesa貓ndth緒emar隊keta爺reao聰fas削eller稅.We裂shall固find栽also像that滅spac鉆epro稱vides史yet瓣anoth焰erdi夠mensi機onfo朝rcom蕩petit粥iona批mong鍵selle譜rs.F群urthe屆r,th蛛isan矮alysi羨swil繳lser找veas鞭aba塌sisf濟(jì)orun尖derst遣andin耳gthe唇loca交tion兵patte片rnso更fwho交lein打dustr最ies.銳Ifan歉indi害vidua調(diào)lfir誰mor衛(wèi)other施unit笨has廣anyb近utth譽emos漆t(yī)myo識pico恒utloo遞k,it甘will尊want顧tok梁nows霉ometh輸inga學(xué)bout退shift添sin案such促patte淘rns.澇Fore科xampl殘e,a司firm對produ奧cing醫(yī)oil-d擋rilli左ngor零refi鏟nery居equip猛ment似shoul蒙dbe谷inter只ested簡int舉helo艙catio枝nals尊hifts寇int盆heoi態(tài)lind補ustry愁and牙abus吩iness巾firm首enjo徑y(tǒng)ing仗favor梁able掘acces逝sto這amar軟kets確hould趴want裳tok愚noww螞hethe循rit板isli漏kely仇that慌more溪compe讀titio賀nwil鄰lbe幣comin逗gits適way.舍While肯some痰oft裝heis景sues鹿devel翼oped獵inCh抬apter航4co瞞ncern推fact獄orst灰hatc售ontri敢bute鄰toth星edis匠persi山onof頂sell躲ersw邁ithin抱ani霉ndust刺ry,淡Chapt辮er5鋤reco盒g(shù)nize冷sthe架powe棉r(nóng)ful辛force炭stha舌tmay堵draw斥sell變erst爭ogeth榜erin毅spac續(xù)e.Fr敏oman污anal軋ysis歷ofva攻rious跑type零sof鍋econo巖mies加ofsp使atial螺conc感entra敘tion捉anda酸desc講ripti撇onof障empi檢rical付evid雨ence邪beari隱ngon覺thei虜rsig庭nific徒ance,軋wes憤hall困find彼that驅(qū)then宿ature瓶oft慈hisf睡ounda濁t(yī)ion浸stone新ofl泉ocati策onde射cisio梅nsca突nhav番eimp溉ortan陶tco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