Economic geography

Theoretical Approaches

Methods

Methods in addition to techniques

Economic geography is the subfield of human geography which studies economic activity as alive as factors affecting them. It can also be considered a subfield or method in economics. There are four branches of economic geography. There is, primary sector, Secondary sector, Tertiary sector, & Quaternary sector.

Economic geography takes a breed of approaches to numerous different topics, including the location of industries, economies of agglomeration also requested as "linkages", transportation, international trade, development, real estate, gentrification, ethnic economies, gendered economies, core-periphery theory, the economics of urban form, the relationship between the environment together with the economy tying into a long history of geographers studying culture-environment interaction, and globalization.

New economic geography

With the rise of the New Economy, economic inequalities are increasing spatially. The New Economy, generally characterized by globalization, increasing ownership of information and communications technology, the growth of cognition goods, and feminization, has enabled economic geographers to inspect social and spatial divisions caused by the rising New Economy, including the emerging digital divide.

The new economic geographies consist of primarily service-based sectors of the economy that usage sophisticated technology, such as industries where people rely on computers and the internet. Within these is a switch from manufacturing-based economies to the digital economy. In these sectors, competition ensures technological redesign robust. These high engineering sectors rely heavily on interpersonal relationships and trust, as development things like software is very different from other kinds of industrial manufacturing—it requires intense levels of cooperation between numerous different people, as well as the use of tacit knowledge. As a written of cooperation becoming a necessity, there is a clustering in the high-tech new economy of many firms.

As characterized through the develope of Diane Perrons, in Anglo-American literature, the New Economy consists of two distinct types. New Economic Geography 1 NEG1 is characterized by modern spatial modelling. It seeks to explain uneven development and the emergence of industrial clusters. It does so through the exploration of linkages between centripetal and centrifugal forces, especially those of economies of scale.

New Economic Geography 2 NEG2 also seeks to explain the apparently paradoxical emergence of industrial clusters in a contemporary context, however, it emphasizes relational, social, and contextual aspects of economic behaviour, especially the importance of tacit knowledge. The main difference between these two variety is NEG2's emphasis on aspects of economic behaviour that NEG1 considers intangible.

Both New Economic Geographies acknowledge transport costs, the importance of cognition in a new economy, possible effects of externalities, and endogenous processes that generate increases in productivity. The two also share a focus on the firm as the nearly important segment and on growth rather than development of regions. As a result, the actual impact of clusters on a region is condition far less attention, relative to the focus on clustering of related activities in a region.

However, the focus on the firm as the leading entity of significance hinders the discussion of New Economic Geography. It limits the discussion in a national and global context and confines it to a smaller scale context. It also places limits on the nature of the firm's activities and their position within the global value chain. Further draw done by Bjorn Asheim 2001 and Gernot Grabher 2002 challenges the abstraction of the firm through action-research approaches and mapping organizational forms and their linkages. In short, the focus on the firm in new economic geographies is undertheorized in NEG1 and undercontextualized in NEG2, which limits the discussion of its affect on spatial economic development.

Spatial divisions within these arising New Economic geographies are apparent in the form of the digital divide, as a or situation. of regions attracting talented workers instead of developing skills at a local level see Creative Class for further reading. Despite increasing inter-connectivity through developing information communication technologies, the contemporary world is still defined through its widening social and spatial divisions, almost of which are increasingly gendered. Danny Quah explains these spatial divisions through the characteristics of knowledge goods in the New Economy: goods defined by their infinite expansibility, weightlessness, and nonrivalry. Social divisions are expressed through new spatial segregation that illustrates spatial grouping by income, ethnicity, abilities, needs, and lifestyle preferences. Employment segregation is evidence by the overrepresentation of women and ethnic minorities in lower-paid good sector jobs. These divisions in the new economy are much more difficult to overcome as a result of few clear pathways of progression to higher-skilled work.