Economic Geography

Economic Geography
1. Definition, Approaches and Fundamental Concepts of Economic Geography; Patterns of Development.

2. Locational Theories – Agriculture (Von Thunen) and Industrial (Weber).

3. Primary Activities – Intensive Subsistence Farming, Commercial Grain Farming, Plantation, Commercial
Dairy Farming, Commercial Fishing, and Mining (iron ore, coal and petroleum). 4. Secondary Activities –
Cotton Textile Industry, Petro-Chemical Industry, Major Manufacturing Regions.

5. Tertiary and Quaternary Activities – Modes of Transportation, Patterns of International Trade, and
Information and Communication Technology Industry.

Economic Geography is the study of the spatial organization of economic activities and their interactions
with the environment. It examines how factors like location, natural resources, infrastructure, labor,
technology, and policies shape economic activities such as production, distribution, trade, and consumption.

Key themes in economic geography:

● Spatial distribution of industries and markets

● Impact of geography on trade and commerce

● Role of globalization in regional economies

● Economic development and regional disparities

2. Approaches to Economic Geography

A. Traditional Approaches

These approaches focus on specific economic activities and their spatial characteristics:

● Commercial Geography – Studies trade patterns, transport networks, and market centers.

● Industrial Geography – Examines the distribution and location of industries based on factors like raw
materials, labor, and transportation.

● Agricultural Geography – Focuses on crop patterns, land use, and the impact of climate and technology
on farming.

● Resource Geography – Studies the distribution and utilization of natural resources like minerals, water,
and forests.

The Three-Sector Model was developed by Allan Fisher, Colin Clark, and Jean Fourastié to describe how
economies evolve over time by shifting between three main sectors of economic activity:
1. Primary Sector – Extractive industries such as agriculture, fishing, forestry, and mining. This sector
dominates pre-industrial economies.
2. Secondary Sector – Manufacturing and industrial production, including construction and factory-based
industries. This sector grows during industrialization.
3. Tertiary Sector – Services, including retail, finance, healthcare, education, and entertainment. This sector
expands as economies develop further.

B. Theoretical Approaches

These approaches provide models to explain economic spatial organization:

1. Location Theory

● Developed by Alfred Weber, it explains industrial location based on transport costs, labor availability,
and agglomeration effects.

● Focuses on minimizing costs while maximizing profits.

2. Central Place Theory (Walter Christaller, August Lösch)

● Explains how settlements function as economic centers providing goods and services to surrounding
areas.

● Larger cities serve as hubs for specialized services, while smaller towns provide basic necessities.

3. Spatial Interaction Models

● Examines trade flows, migration, and the diffusion of economic activities between regions.

● Examples: Gravity Model, Huff Model (used in retail geography).

C. Behavioral and Quantitative Approaches

● Behavioral Approach – Focuses on human decision-making in economic geography, such as consumer

behavior and business location choices.

● Quantitative Approach – Uses statistical techniques (GIS, regression models) to analyze economic data
spatially.

D. Political Economy Approach

● Examines how political power, capitalism, and state policies shape economic activities.

● Key theories:

o World-Systems Theory (Immanuel Wallerstein) – Divides the world into Core, Semi-Periphery, and
Periphery economies.

o Dependency Theory – Suggests that poor nations remain underdeveloped due to economic exploitation
by richer countries.

E. New Economic Geography (NEG)

● Developed by Paul Krugman, NEG integrates trade, urbanization, and economies of scale into
geographic models.

● Explains why industries cluster in specific regions due to market potential and labor pooling.

3. Fundamental Concepts of Economic Geography

A. Location and Spatial Distribution

● Economic activities are not randomly distributed but are influenced by factors like climate, resources,
population, and infrastructure.

● Examples:

o IT industries cluster in Silicon Valley due to skilled labor and innovation networks.

o Ports like Rotterdam and Singapore serve as global trade hubs due to their strategic locations.

B. Resources and Economic Activities

● Classification of resources:

o Renewable (e.g., forests, water)

o Non-renewable (e.g., coal, oil, minerals)

● Economic activities based on resource availability:

o Agriculture in fertile river valleys (Ganges, Nile)

o Mining industries in resource-rich areas (South Africa for gold, Middle East for oil)

C. Industrial Clusters and Agglomeration

● Industries often cluster due to benefits like shared suppliers, labor markets, and innovation.

● Marshall’s Agglomeration Economies:

o Localization Economies – Industries of the same type benefit from proximity (e.g., automobile sector in
Detroit).

o Urbanization Economies – Diverse industries in cities boost innovation and growth.

D. Globalization and Economic Geography

● Trade liberalization has led to global production networks (e.g., Apple’s supply chain across multiple
countries).

● Foreign Direct Investment (FDI) influences regional development (e.g., China’s special economic zones).

● Offshoring and Outsourcing – Movement of industries to low-cost countries (e.g., IT outsourcing to

India).

E. Development and Regional Disparities

● Economic development varies due to infrastructure, education, political stability, and market
accessibility.
● Factors causing regional disparities:

o Historical colonization effects

o Unequal resource distribution

o Government policies (e.g., special economic zones, subsidies for backward regions)

4. Patterns of Development

A. Core-Periphery Model (John Friedmann, Wallerstein)

● Development is uneven, with a "Core" (developed regions) exploiting a "Periphery" (less developed
regions).

● Example: Global North (Europe, USA) vs. Global South (Africa, parts of Asia).

B. Growth Pole Theory (François Perroux, Boudeville)

● Economic growth starts in urban centers and spreads outward.

● Example: Mumbai, Shanghai, and São Paulo as economic growth poles for their respective countries.

C. Rostow’s Stages of Economic Growth

● Traditional Society →Preconditions for Take-off →Take-off →Drive to Maturity →Age of Mass Consumption.

● Example:

o India in the Take-off Stage with rapid industrialization.

o USA in the Age of Mass Consumption with a strong consumer economy.

D. Circular and Cumulative Causation (Myrdal)

● Economic growth is self-reinforcing: Rich regions continue to develop, while poor regions lag.

● Example: Silicon Valley continues to grow due to technological advancements, attracting more skilled
labor and investment.

E. Sustainable Development

● A balance between economic growth, environmental conservation, and social equity.

● Key strategies:

o Green technologies (solar, wind energy)

o Sustainable agriculture (organic farming, crop rotation)

o Eco-friendly urban planning (smart cities, green buildings)

Von Thünen’s Agricultural Location Theory (1826)

Johann Heinrich von Thünen, a German economist and geographer, developed a model to explain the
spatial distribution of agricultural activities around a central market city. His theory is based on the idea
that farmers seek to maximize profits by minimizing transportation costs while considering land rent.
Key Assumptions of the Model

● The land is a flat, featureless plain with uniform soil and climate.

● There is only one central market city, where all agricultural products are sold.

● Farmers aim to maximize profit by choosing crops that yield the highest return relative to transportation
costs.

● Transportation costs increase with distance from the market.

● No external influences like government policies or infrastructure developments exist.

Von Thünen’s Rings

Von Thünen proposed a series of concentric rings around the central market, each specializing in different
types of agriculture based on transport costs and perishability.

Ring Type of Agriculture Reasoning

1st Ring Dairy and Market Gardening Highly perishable (milk, vegetables), high transport costs.

2nd Ring Forestry Heavy and costly to transport (firewood, timber).

3rd Ring Extensive Field Crops Less perishable (wheat, grains), lower transport costs.

4th Ring Ranching & Livestock Requires large land areas; animals can be transported easily.

Modifications and Relevance Today

● Improved transportation (railroads, refrigeration) has weakened the rigid ring structure.

● Urban sprawl and technological advancements influence modern agricultural patterns.

● Government policies, subsidies, and global trade affect land use.

● Still relevant in understanding rural-urban land use patterns and agricultural zoning
Weber’s Industrial Location Theory (1909)
Alfred Weber, a German economist, developed a theory to determine the optimal location of industries by
minimizing three key costs:

1. Transport Costs (raw materials and finished goods)

2. Labor Costs (wages and availability)

3. Agglomeration Economies (cost savings from industrial clustering)

Key Assumptions of the Model

● Industries seek to minimize total costs to maximize profits.

● There is a single market for selling goods.
● Transportation costs are directly proportional to weight and distance.
● Industries use one or more raw materials that may be ubiquitous (available everywhere) or
localized (found in specific places).
● Labor is immobile and wages vary by location.

Weber’s Triangle (Least Cost Location)

Weber's model suggests that an industry's location is determined by the relative distances and weights of
raw materials (R1, R2) and the market (M).
● Material-Oriented Industries (Weight-Losing Industries)

o Located near raw material sources to reduce transport costs.

o Example: Iron and steel industry, copper smelting, paper mills.

● Market-Oriented Industries (Weight-Gaining Industries)

o Located near the market to minimize the cost of transporting heavy finished goods.
o Example: Soft drink bottling, furniture manufacturing.

Agglomeration and Deglomeration

● Agglomeration Economies – Industries cluster together to share labour, infrastructure, and suppliers
(e.g., Silicon Valley for tech, Detroit for automobiles).
● Deglomeration – When congestion, high rents, or labour shortages force industries to move to less
concentrated areas.

Modifications and Relevance Today

● Globalization and flexible manufacturing reduce the importance of transport costs.

● Government policies, taxes, and environmental regulations influence industrial locations.
● Digital economy and remote work have shifted some industries away from traditional industrial
centres.
● Still relevant in logistics, supply chain management, and urban-industrial planning
Primary Activities
Primary activities involve the extraction of natural resources directly from the earth. These activities include
agriculture, fishing, forestry, and mining.

A. Intensive Subsistence Farming

● Practiced in densely populated regions like South and East Asia.

● Relies on small landholdings, high labor input, and traditional techniques.
● Crops: Rice (Asia), wheat, maize, pulses, and vegetables.
● Common in countries like India, China, Bangladesh, Indonesia.
● Land-labor ratio: High labor intensity due to small landholdings.
● Von Thünen’s Land Rent Theory: Land closest to the market is used for perishable crops.
● Agricultural productivity paradox: High output per hectare but low output per worker.
● Sustainability challenges: Overuse of land, soil degradation, and reliance on monsoons.

B. Commercial Grain Farming

● Large-scale mechanized farming primarily in temperate regions.

● Crops: Wheat, barley, corn, oats.
● Common in the USA (Great Plains), Canada, Russia, Ukraine, and Australia.
● Uses advanced technology such as tractors, harvesters, irrigation, and chemical fertilizers.
● Global value chains: Large agribusiness corporations like Cargill and Archer Daniels Midland
dominate grain exports.
● Economies of scale: Use of mechanization, hybrid seeds, and large farms increases productivity.
● Food security and trade dependency: Export-oriented economies face risks from global market
fluctuations.

C. Plantation Agriculture

● Large-scale monoculture farming for export purposes.

● Requires huge capital investment, migrant labor, and specialized crops.
● Crops: Tea, coffee, rubber, cocoa, sugarcane, banana, oil palm.
● Locations: India (Tea in Assam, Coffee in Karnataka), Brazil (Coffee), Malaysia (Rubber, Palm
Oil), Indonesia (Oil Palm), West Africa (Cocoa).
● Commodity chains: Plantation crops (tea, coffee, rubber, palm oil) are grown in the Global South
but processed and consumed in the Global North.
● Neocolonialism in agriculture: Historical plantations were established under colonial rule; many
remain controlled by multinational corporations.
● Fair trade movements: Attempt to create equitable trade conditions for farmers.

D. Commercial Dairy Farming

● Intensive, mechanized farming focusing on milk and dairy production.

● Developed in the USA, Canada, Denmark, Netherlands, Australia, and New Zealand.
● Uses modern techniques like artificial insemination, refrigerated transport, and high-yield
dairy breeds.

E. Commercial Fishing

● Marine and inland fishing for global food supply and export.
 ● Major fishing regions:
○ North Atlantic (Norway, Iceland, Canada, USA)
○ North Pacific (Japan, Russia, Alaska)
○ Indian Ocean (India, Indonesia, Sri Lanka)

● Techniques: Deep-sea fishing, trawling, aquaculture.

● Tragedy of the commons: Overfishing depletes fish stocks, requiring international regulations
like the UN’s Sustainable Fisheries Program. (laid foundation by Garett Hardin — individuals
acting in self interest and not caring for the public good when dealing with common
resources.)
● Aquaculture and sustainability: Fish farming as an alternative to wild fishing to meet rising
global demand.
● Exclusive Economic Zones (EEZs): Countries control fishing rights up to 200 nautical miles from
their coastline.

F. Mining

Mining involves the extraction of minerals and fuels essential for industrial development.

1. Iron Ore Mining

● Major producers: China, Australia, Brazil, India, Russia.

● Key mining regions:
○ India: Odisha (Keonjhar), Chhattisgarh (Bailadila), Karnataka (Bellary).
○ Brazil: Carajás mines.
○ Australia: (Tom Price) Pilbara region.

2. Coal Mining

● Key producers: China, India, USA, Australia, Indonesia.

● Major coalfields:
○ India: Jharkhand (Jharia, Bokaro), West Bengal (Raniganj), Chhattisgarh (Korba).
○ China: Shanxi province.
○ USA: Appalachian coalfields.

3. Petroleum Extraction

● Largest producers: USA, Saudi Arabia, Russia, Canada, Iran.

● Major oil fields:
○ Middle East: Ghawar (Saudi Arabia), Burgan (Kuwait).
○ USA: Texas, Alaska.
○ India: Bombay High, Krishna-Godavari Basin.
● Resource curse (Paradox of Plenty): Countries rich in resources (e.g., Venezuela, Nigeria) often
suffer from economic instability due to over-reliance on extractive industries.
● Core-periphery model: Resource-rich regions often supply raw materials to industrialized core
regions, reinforcing global economic inequality.
● Environmental externalities: Mining leads to land degradation, deforestation, and pollution
Secondary Activities (Manufacturing and Industry)
Secondary activities involve processing raw materials into finished products.

A. Cotton Textile Industry

● One of the oldest industries, highly labor-intensive.

● Major producers: China, India, Bangladesh, Pakistan, Vietnam, Turkey.
● Key textile centers:
○ India: Mumbai, Ahmedabad, Coimbatore.
○ China: Shanghai, Guangzhou.
○ Bangladesh: Dhaka (garment industry).
● Challenges: Competition, labor issues, environmental concerns.
● Resource curse (Paradox of Plenty): Countries rich in resources (e.g., Venezuela, Nigeria)
often suffer from economic instability due to over-reliance on extractive industries.
● Core-periphery model: Resource-rich regions often supply raw materials to industrialized
core regions, reinforcing global economic inequality.
● Environmental externalities: Mining leads to land degradation, deforestation, and pollution

B. Petrochemical Industry

● Produces plastics, synthetic fibers, fertilizers, and chemicals.

● Major producers: USA, China, Saudi Arabia, Russia, India.
● Key hubs:
○ India: Jamnagar (Reliance Refinery), Vadodara.
○ USA: Texas, Louisiana.
○ Middle East: Saudi Arabia, UAE.
● OPEC and energy geopolitics: Oil production is highly concentrated, giving power to
organizations like OPEC.
● Post-Fordist production: Decentralized manufacturing of chemicals, plastics, and synthetic
materials.
● Carbon lock-in: Reliance on fossil fuels despite the push for renewable energy sources

C. Major Manufacturing Regions

● USA: Rust Belt (Steel Belt or Factory Belt), Great Lakes region.
● Europe: Germany (Ruhr Valley), UK, France.
● China: Pearl River Delta, Yangtze River Delta.
● India: Mumbai-Pune, Chennai-Bengaluru, NCR, Gujarat industrial corridor.

● Global manufacturing shifts: Shift from traditional industrial centers (Europe, North America) to
emerging economies (China, India, Vietnam).
● Agglomeration economies: Industries cluster together for cost advantages (e.g., Silicon Valley,
Detroit auto industry).
● Deindustrialization and Rust Belt decline: Older industrial regions face economic stagnation due to
automation and outsourcing.
Tertiary Activities (Services and Trade)
Tertiary activities involve providing services rather than goods.

A. Modes of Transportation

1. Road Transport – Flexible, used for short-distance travel (e.g., highways, expressways).
2. Railways – Cost-effective for bulk transport (e.g., Indian Railways, Trans-Siberian Railway).
3. Air Transport – Fastest mode, used for high-value cargo (e.g., DHL, FedEx).
4. Water Transport – Cheapest for heavy cargo (e.g., Suez Canal, Panama Canal).
5. Pipeline Transport – Used for oil, gas, and chemicals (e.g., Druzhba Pipeline, TAPI Pipeline).

B. Patterns of International Trade

● Major Trading Blocs

○ NAFTA (USMCA) – USA, Canada, Mexico.
○ EU (European Union) – 27 European nations.
○ ASEAN (Southeast Asia) – Indonesia, Malaysia, Thailand, Vietnam.
● Major Trade Routes
○ Trans-Pacific Trade (China-USA-Japan)
○ Trans-Atlantic Trade (USA-EU)
○ China’s Belt and Road Initiative (BRI)

C. Information and Communication Technology (ICT) Industry

● Fastest-growing sector, supporting the digital economy.

● Major hubs:
○ USA: Silicon Valley (Google, Apple, Microsoft).
○ India: Bengaluru, Hyderabad (Infosys, TCS, Wipro).
○ China: Shenzhen, Beijing (Huawei, Tencent).
● Key Areas:
○ Software development, cloud computing, AI, e-commerce.
○ Big data, cybersecurity, digital marketing.

Quaternary Activities (Knowledge-Based Economy)

Quaternary activities focus on research, innovation, education, and high-level services.

Key Areas

● R&D (Research and Development) – Pharmaceuticals, biotech, space exploration.

● Finance and Banking – Global stock markets, fintech (New York, London, Singapore).
● Education and Consultancy – Universities, think tanks, online learning platforms.
● Media and Entertainment – Digital content, gaming, OTT platforms.
Urbanisation Rates
🍤 Fisheries
 Fishing Area Fish Varieties Available

Northwest Pacific Tuna, Pollock, Herring, Sardine, Mackerel,

(Japan, China, Russia, Korea) Squid, Crab, Shrimp

Northeast Atlantic Cod, Haddock, Herring, Mackerel, Plaice,

(Europe, Iceland, Norway, UK) Halibut, Salmon

West Central Pacific Tuna, Mahi-Mahi, Snapper, Grouper, Shrimp,

(Indonesia, Philippines, Australia, Pacific Islands) Lobster

Southeast Pacific Anchovy, Sardine, Jack Mackerel, Tuna, Hake

(Chile, Peru, Ecuador)

Southwest Atlantic Hake, Squid, Sardine, Croaker, Shrimp,

(Argentina, Brazil, Uruguay) Anchovy

Northwest Atlantic Cod, Haddock, Herring, Lobster, Scallops,

(USA, Canada, Greenland) Mackerel, Flounder

Indian Ocean Tuna, Shrimp, Mackerel, Snapper, Sardine,

(India, Sri Lanka, Maldives, East Africa, Australia) Lobster, Shark

Mediterranean & Black Sea Anchovy, Tuna, Mackerel, Sardine, Sea Bass,
(Europe, North Africa, Middle East) Swordfish

Arctic Ocean Cod, Halibut, Capelin, Shrimp, Arctic Char

(Northern Russia, Norway, Canada, Greenland)

Southern Ocean Patagonian Toothfish, Antarctic Krill, Icefish

(Antarctica region)