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Today
Why do businesses settle where they do?
– Economic Geography
How can we explain and analyse the
hierarchy of cities?
– World Cities
What influences our daily movements
through time and space?
– Time Geography
Hotelling’s (1929) Law of minimum differentiation
Linear beach
Even distribution of
customers
Inelastic price
Transport costs
equal
Hotelling’s (1929) Law of minimum differentiation
Maximise market share by locating in the middle location – All competing firms want to be at that location
All different scenarios – sellers come to a central place – works for most businesses – Downtowns
– Shopping malls
– Retail streets – „why are there so shoe shops in one place?‟
Agglomeration effects – Benefits of being in close proximity
– Share networks, resources, markets
Non-geographic applications of Hotelling’s law
Politics: rush towards „middle ground‟
Non-geographic applications of Hotelling’s law
What‟s so different???
Social optimum
Lies elsewhere
Even distribution over space
Requires regulation
– No business will leave optimal location voluntarily
Economic geography
“The challenge for the economic geographer
is how to analyse and explain the
geographical patterns of economic activity at
different scales and how they change over
time…” (Daniels et al., 2008: 295)
What Questions would economic geographers
ask?
Threshold Population
The number of people needed to sustain a particular business or activity. Take the population of a place and divide by the number of businesses of a particular activity
Hypothetical example City of 100,000 people – 100 convenience stores (threshold pop. 1000)
– 50 dry cleaners (threshold pop.
– 10 banks
– 5 high schools
– 3 electronics stores
– 2 cinemas
– 1 department store
Question
In Indonesian cities, what are some
businesses and services with a very low
threshold population (i.e. there are a lot of
them!)?
What are some businesses and services with
a very high threshold population?
Do these vary between different cities,
urban/rural?
– i.e. is there a geography to these amenities?
Starbucks
There are 12,973 Starbucks in the United
States
– That‟s one Starbucks for every 24,365 Americans!
Threshold Population for a Starbucks
– 24,365
Starbucks
Manhattan
– 1,600,000 people
– 212 Starbucks
One Starbucks for
every 7,500 people
Detroit
– 700,000 people
– 3 Starbucks
One Starbucks for
every 230,000
people
What can you do in the places you are from?
Buy a newspaper
Buy a shirt or shoes
Deposit money in a bank
Go to primary school
Buy a new television
Go to the cinema
Buy a car
Go to university
Buy a Ferrari
Opel versus Ferrari in the Netherlands
156 Opel dealers in the Netherlands
– Threshold population ~100,000
2 Ferrari dealers in the Netherlands
– Hilversum and Hengelo
– Threshold population ~8,000,000
Sources: www.autovind.nl
Neoclassic location theory
Who? Van Thünen, Christaller When? 19th century – 1970s What? Economic activity is aimed
at getting most favourable competitive position; actors are fully informed and take rational decisions to maximise profits
Main determinant: Distance Where? Economic activities on most central location
Criticism? Unrealistic assumptions, other factors need to be taken into account
Behavioural location theory
Who? Potter, Edwards, Hayter & Watts
When? 1980s-1990s
What? Economic activity determined by aspirations/ desires/ behaviour of entrepreneur; actors do not have perfect information – outcomes are sub-optimal
Main determinant: individuals
Where? Economic activities on well-known, reliable location
Criticism? Too descriptive/limited to individuals; no attention for general (economic, social, cultural, political) processes
Structuralist location theory
Who? Massey & others
When? 1980s-now
What? (holistic approach) – Firms work within a capitalist society in which production is
a social process between capital and labour, rather than individuals
– Theory rather than empirically based: Changes in economic conditions affect requirements for production which impacts requirements of economic activity at a given location
Determinant: behaviour is shaped by wider economic, social and political processes
Where? Economic activity at variable locations
Criticism? No real model
Question:
After finishing university, do many graduates from Yogyakarta move to Jakarta to look for work and build a career?
Who leaves the countryside/periphery of Indonesia in search of work in Jakarta? – If so, why?
What is a World City?
What makes a city a Global City?
What are world cities?
The hub points in the global network (Short & Kim, 1999)
According to Friedmann (1986):
– Basing points in the spatial organization of production and markets
– Sites for the concentration and accumulation of international capital
– Centres of corporate headquarters etc.
– Points of destination for migrants
– They constitute a world wide system of control over production
Friedman and Wolff: not based on population size: that is a consequence of their ec and pol.
Friedmann and Wolff – What are World Cities?
Chief economic functions: management, banking, finance, legal services, accounting, consulting, ICT, international transportation, research and higher education
Real estate, construction
Hotels, restaurants, luxury shopping, entertainment
International tourism
Government services
Informal economy (linked to immigration)
World City Hypothesis (WCH)
John Friedmann (1986): spatial
organization of the new international
division of labour (NIDL). 7 theses:
1. City‟s integration within world economy and city‟s
function within NIDL is decisive for any internal
structural changes
2. Key cities are „basing points‟ of global capital linked
within a complex spatial hierarchy
World City Hypothesis (WCH)
3. Global control functions of WCs are directly reflected in structure/dynamics of their production sectors/employment
- Corporate HQ, finance, information, news culture - Polarisation of workforce is evident
4. WCs: sites for concentration/ accumulation of international capital
5. WCs: destination for large numbers of domestic/ international migrants
6. World city formation brings into focus major contradictions of industrial capitalism (global, regional, metropolitan polarisation)
- Polarisation on three scales: national, regional, metropolitan
7. WC growth generates social costs that exceed fiscal capacity of the state
“Space of flows” (Manuel Castells)
The global city is not a place but a process
Information technology changed the world: technology is a facilitator of global city development
World cities are strategically important places in a network
Global cities house the management elite
Places can be “connected” or “disconnected”
Clustering, segregation and congregations of people
Question:
Why might there be more polarisation in
World Cities?
Congregation
Territorial and residential clustering of specific (sub) groups of people
Advantages: – Means of cultural preservation
– Minimises conflict and provides defence against „outsiders‟
– Mutual support
– Power base in relation to host society
But: not always voluntary
Social exclusion
Exclusion of people from the accepted norms
within a society (economically, politically,
socially culturally).
Relative concept → linked to society (not
being able to participate in „average‟
activities)
Poverty, but also lifestyle-induced
Spatial segregation
Congregation + discrimination = segregation
Spatial separation of specific population subgroups within a wider population
Forms of segregation:
– Ethnic enclaves
– Ghettos
– Colonies
Measures: Dissimilarity index, poverty areas
Polarisation
Social polarisation: a process in which: – The number of rich people increases
– The number of poor people increases
– The number of middle-income households declines
From the egg to the hourglass (Marcuse)
Also applicable to education
Social inequality – Poor become poorer
– Rich become richer
Question:
How did you come to class today?
– Write down the exact route you took, which
methods of transport, what you did along the way
Why did you take this route?
– Think about different opportunities and constraints
– (not just why you came this way, but why not
something else?)
Time Geography
Hägerstrand 1970
Understands people through uninterrupted
paths through time and space
3D aquarium of an individuals movement
3D prism of potential movements
Everything in the world is understood through
a „movement‟
Time Geography
The paths people take are influenced by three CONSTRAINTS
1. Capability Constraints – Biological, mental, instrumental limitations and
affordances
2. Coupling Constraints – The necessity for people and things to come together
at certain times and locations for joint activities
3. Authority Constraints – Regulations of access to places through social rules,
laws, financial barriers and power relations
What are some examples of these constrains in your daily travel?
Capability Constrains
Coupling Constrains
Authority Constrains
Expanding on Classical Time Geography
The role of emotions and experience
The role of gender/ethnicity/lifestyle
The role of climate and weather
The role of the internet and ICT
– You can be in two places at once! (though not
physically, of course. That is still impossible)
Different meanings of travel
Not just a means of getting from A to B
Combining activities
– (time fragmentation)
Embodied experiences of travel
– How emotions influence our travel behaviour
– McQuoid and Dijst for the ways in which low-
income women experience travel
Travel as status symbol
Returning to Brian’s trip to work!
15 minute bike ride from home to Den Haag
Centraal Station
39 minute train ride from Den Haag to
Utrecht (709 train, runs every 15 minutes)
5 minute walk to my bike parked near Utrecht
Centraal Station
15 minute bike ride to the university
Total: 90 minutes!
Returning to Brian’s trip to work!
No car – capability constraint
Long commute – quick routes – Cycling faster than the tram/bus
Classes start at 9am – coupling constraint – 709 train gets me in at 815 – time to prepare,
account for delays
Cycling – Fast, exercise (16km per day!), time to think
(emotions), „I‟m in control‟ (no coupling constraints waiting for the bus)
Brian’s trip to the train station
Cycling
Route(s) taken:
– Fast! (coupling constrain – 709 train is very
early!)
– (most routes are quiet at 645am so traffic not an
issue)
– Rain or wind: seek a more sheltered route (but
always cycle)
Return trip
Busier – more cars and pedestrians
(Authoritative constrains – not allowed to cycle
on shopping streets during business hours)
A lot more cars so it‟s less safe on some routes
(pick a route with bike paths)
Other activities (pick up groceries on the way
home)
– Constraint of not having a car means shopping almost
every day
Why don‟t I have a car
– Preferences, conveniences, lifestyle, networks
– Individual centred (Time Geography)
Why don‟t I need a car?
– Structure, context, planning, regulations,
economy all set up in a way that owning a car is
not necessary for me
– Structural approach