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An Introduction to Regional Economics
Edgar M. Hoover and Frank Giarratani
1 Introduction
1.1 WHAT IS REGIONAL ECONOMICS?
Economic systems are dynamic entities, and the nature and consequences of changes that take place in these systems are of considerable importance. Such change affects the well-being of individuals and ultimately the social and political fabric of community and nation. As social beings, we cannot help but react to the changes we observe. For some people that reaction is quite passive; the economy changes, and they find that their immediate environment is somehow different, forcing adjustment to the new reality. For others, changes in the economic system represent a challenge; they seek to understand the nature of factors that have led to change and may, in light of that knowledge, adjust their own patterns of behavior or attempt to bring about change in the economic, political, and social systems in which they live and work.
In this context, regional economics represents a framework within which the spatial character of economic systems may be understood. We seek to identify the factors governing the distribution of economic activity over space and to recognize that as this distribution changes, there will be important consequences for individuals and for communities.
Thus, regional or spatial economics might be summed up in the question What is where, and why—and so what? The first what refers to every type of economic activity: not only production establishments in the narrow sense of factories, farms, and mines, but also other kinds of businesses, households, and private and public institutions. Where refers to location in relation to other economic activity; it involves questions of proximity, concentration, dispersion, and similarity or disparity of spatial patterns, and it can be discussed either in broad terms, such as among regions, or microgeographically, in terms of zones, neighborhoods, and sites. The why and the so what refer to inte
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