Prof. MUDRAJAD KUNCORO, Ph.D
Faculty of Economics & Business UGM
E-Mail :
[email protected]
HP : 0811 – 25 – 4255
Visit my personal web:
http://www.mudrajad.com
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 The most striking features of the geography of economic
activity is concentration and unevenness
 Widespread regional clustering
 Urban primacy
 High degree of persistence over time
 The persistence of unequal geographic distribution of
manufacturing over time has been extensively examined in
US and EU (European Union) countries
 Both US and EU countries are becoming more disperse with lower
geographic concentration
 Only few studies have examined geographic concentration in
less-developed countries
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ECONOMIC GEOGRAPHY
• Where
• Why
TECHNOLOGY
• Innovation
• Trajectories
• Knowledge spillover
STRATEGY
• Globalisation (slippery space)
• Sticky places (local
embeddedness)
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 The Industrial Revolution, started in the eighteenth
century, is still taking place today
 Involves a series of inventions leading to the use of
machines and inanimate power in the manufacturing
process
 Suddenly whole societies could engage in seemingly
limitless multiplication of goods and services
 Rapid bursts of human inventiveness followed
 Gigantic population increases
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 The Industrial Revolution, started in the eighteenth
century, is still taking place today
 Massive, often unsettling, remodeling of the environment
 Today, few lands remain largely untouched by its machines,
factories, transportation devices, and communication
techniques
 On an individual level, no facet of North American life
remains unaffected
 Just about every object and every event in your life is affected,
if not actually created, by the Industrial Revolution
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 For a century, Britain held a virtual monopoly on its
industrial innovations
 Government actively tried to prevent diffusion
 Gave Britain enormous economic advantage
 Contributed greatly to growth and strength of British
Empire
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 The technology finally diffused
beyond the British Isles
 Continental Europe first
received its impact in last half
of the nineteenth century
 Took firm root hierarchically in
coal fields of Germany, Belgium,
and other nations of
northwestern and Central
Europe
 Diffusion of railroads provides a
good index
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Sumber:
Hayter (2000: 59)
 The technology finally diffused beyond the British
Isles
 United States began rapid adoption of new technology
about 1850
 About 1900, Japan was the first major non-Western
country to undergo full industrialization
 In the first third of the 1900s, diffusion spilled into
Russia and Ukraine
 Recently, countries such as Taiwan, South Korea, China,
Indian, and Singapore joined the manufacturing age
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Sumber: Krugman (1996: 12); Hayter10(2000: 61)
 Most of the world’s industrial activity has traditionally
been found in developed countries of the midlatitudes
 Japan’s industrial complex lies around the shore of the Inland
Sea and in the southern part of the country
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Economics
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 Industrial Economy
 China’s economy is GROWING
 Industrial base is in the northeast.
 Shanghai = center of Chinese manufacturing
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Province
Pop.
% rural /
urban
rural / urban
income (RMB)
p.a.
% ethnic
growth
minorities
Shaanxi
36m
67 / 33
1,186 / 4,891
0.71%
0.6
Gansu
25m
76 / 24
1,400 / 4,890
1.00%
8.3
Qinghai
5.8m
64 / 36
1,490 / 5,170
1.45%
(2.5%)
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Xinjiang
18m
(>90% in
oases)
1,618 / 5,817
1.28%
China
1,3b
64 / 36
Beijing
12m
3,441 / 8,493
c. 2.5%
3m MWs?
17.7m
4,138 / 8,864
<1%
Shanghai
(4.4mMW)
61.4
0.4
Olympic Village site, July 04
An increasingly globalised economy and cosmopolitan
capital Picture taken inside the Palace Museum!
 After World war II ,
China and Japan
emerged as
manufacturing leaders
 JAKOTA Triangle
 Japan, South Korea
and Taiwan make up
the Jakota triangle.
 The area has become
part of a global
economy
 Nations become
dependent on each
economically
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Direct removal of natural resources such as mining,
forestry, and agriculture -most important in the
LDCs.
 Subsistence Agriculture
 Fishing and Forestry
 Mining and Quarrying
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 Five types of industrial activity, each occupying culture
regions can be distinguished
 Primary industries—those involved in extracting natural
resources from the Earth
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 Fishing is an extractive
activity – taking a
natural resource, in this
case renewable, from
the Earth.
 Here in the Cai River
estuary, a variety of boats
fish the South China Sea
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The percentage of people working in agriculture exceeds 75% in many
LDCs of Africa and Asia. In Anglo-America and Western Europe the figure
is <5%
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 Five types of industrial activity, each occupying culture
regions can be distinguished
 Secondary industry—processing stage, commonly called
manufacturing
 Other three types all involve services of some sort, rather than
the extraction or production of commodities
 Tertiary
 Quaternary
 Quinary
 Next slide reveals worldwide patterns of some primary and
secondary industry
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Secondary - Processing and transforming natural
resources: steel, textiles, auto assembly. These
used to be most important in MDCs, but
increasingly important in the semi-periphery
(Korea, Mexico, Brazil, Singapore)
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 Industrialization is also having negative effects on the
environment, and urban sprawl and poverty
 Space utilization
 Some Asian countries are running out of room!
 How to fix it?
 Build smaller Link to Capsule hotels in Japan
 Build up, not out.
 Landfill – especially Japan
 Layering garbage between layers of dirt to reclaim land.
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Provision of services in exchange for payment. Includes
retailing, banking, law, education, and government.
Education, R & D, and information technology
becoming most important in the postindustrial core
regions.
Less-developed countries often focus on tourism.
Services historically were clustered into settlements.
Increasingly the most important service centers
are massive world cities.
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Less-developed countries often focus on tourism.
Vendors, Bali
Club Med, The Bahamas
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 Resources affect patterns of development: cultivable land,
energy sources, minerals. But changes in technology
affect the value of these resources. Also, trade or lack of it
can offset lack of resources (Japan) or make them less
relevant (Brazil).
 Technology Systems: roughly every 50 years since 1790 a
new complex of technologies has revolutionized the
world economic system and its structure. The most
recent of these is the system which includes
biotechnology, advanced materials (superconductors,
solar power) and information technology.
Which parts of the world benefited from the shift from coal to oil?
Which suffered? Which parts of the world will benefit from the
inevitable end of our reliance on petroleum and the necessary shift to
wind, hydro, tide, or solar power ?
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 Transnational Companies have been very aggressive
in using low-cost labor in LDCs.
 Seek elimination of trade barriers (Tariffs)
 No minimum standards in place
 A “rush” to the bottom?
 Loss of U.S. jobs - “a great sucking sound” after
NAFTA?
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Why is
industry/manufacturing located where
it is?
 Begin theory…. Now!
The Paris Basin is the Industrial base of France.
Rouen (above) is at the head of navigation point
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on the Seine River.
Industrial Location: Site and Situation Factors
 Raw Materials
 Energy
 Labor
 Market
 Transport
In order to succeed industries must have some comparative
advantage in one or more of these factors. Moreover,
demand must exist for the product.
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Industrial Location of Steel Mills: Transport
Characteristics (Bulk-Reducing)
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Industrial Location: Site and Situation Factors
 Transport Characteristics (Bulk-Gaining)
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Convenience Store Locations
•Market Areas - circular or
hexagonal area from which
customers are drawn.
•Range - maximum distance
people will go for a service
•Threshold - minimum # of
consumers needed to
support the service.
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Grocery Store Locations
•Market Areas - circular or
hexagonal area from which
customers are drawn.
•Range - maximum distance
people will go for a service
•Threshold - minimum # of
consumers needed to
support the service.
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