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"fo...
