LEC1-Economic Geography Introduction

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    Introduction to GGR 221- New

    Economic Spaces

    Deborah Leslie http://www.utoronto.ca/culturaleconomy/ deborah.leslie@utoronto.ca Course blackboard site: go to utoronto portal

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    What is economic geography?

    location of different types of economicactivities, the economies of particular regions,

    and economic relationships between places

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    I sit at a mahogany table from Honduras. The carpet on which it

    stands has been manufactured at Kidderminster in England fromwool brought by a sailor from the River Plate or New South

    Wales. The tea in a Berlin porcelain cup came from China or

    Assam, the coffee from Java, the sugar from Lower Saxony,

    Brazil or Cuba. I smoke Puerto Rican tobacco in my pipe whose

    stem grew in Hungary, the material for its Meerschaum bowl,

    carved in Thuringia, was dug in Asia Minor, the amber mouth

    piece came from the Baltic Sea, and the silver for the rim from

    the silver mines of the Erzgebirge, Harz or perhaps from

    Potosi ... Karl Andree (1867)

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    where are goods and services produced? under what conditions? how is it that a good produced in one placeends up at another? By what means? who buys them? How has the production of goods and servicesevolved over time? What is the appropriate role of government? what, who, how, where, why and so what?

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    distinct from economics- less abstract andgeneralizing

    Geography matters! "I realized that I spent my whole professional

    life ... thinking and writing about economic

    geography, without being aware of it" Paul

    Krugman, Economist (NY Times)

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    Krugman: a) transportation costs encourage

    manufacturers to locate close to other

    manufacturers

    b) makes region attractive to workers

    c) draws other manufacturers to be close tomarket

    d) manufacturing concentrates in core area andsupplies periphery- cumulative causation

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    central geographical concepts (Coe, Kelly andYeung, 2013)

    a) location and distance b) territory c) place

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    d) scale: geographical levels of human activity global macro-regional national regional urban local lived places i.e. workplace and home body

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    External reasons to study economic

    geography

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    a) The transformation of the manufacturingsystem

    from Fordism to post-Fordism

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    Crisis and bailouts to North American Auto

    Industry, and 2013 Canadian Renewal of

    Auto Industry Investment Fund

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    clustering and agglomeration

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    b) The transition to an knowledge/creativeeconomy

    i) increased input of information into theproduction of goods: R&D, technology, and

    design

    ii) production of signs, symbols, information new creative clusters/ districts

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    MARS and Liberty Village

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    c) financialization proliferation of financial markets and

    institutions

    economic relations increasingly embedded infinancial transactions

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    Subprime mortgage crisis

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    Stock market crash

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    d) Globalization Canada linked to the global economy in four

    main ways:

    i) ecological depletion

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    Tar Sands

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    ii) technological dependence and the braindrain

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    iii) continental integration across all states and regions

    iv) cultural deterritorialization

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    Pinewood Studios, Toronto

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    we live in challenging economic times, andeconomic geographers are well positioned tounderstand the inherently geographical natureof recent changes

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    Internal reasons to study economic

    geography.

    economic geography is intellectually vibrant.

    characterized by a willingness to experiment never more intellectually porous and

    adventurous than in current period

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    Main historical traditions/theories: a) modelling tradition (positivism)

    b) behaviouralism c) Marxian political economy (structuralism)

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    d) new economic geography: influenced bynew economic sociology, institutionaleconomics, postmodernism/ poststructuralism

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    Conclusion

    economic geography diverse, polycentric opens up a broad and inclusive debate on how

    the economy is organized geographically and

    how it could and should be organized

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    Staples Theory and the Forest

    Industry in British Columbia

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    W. A. McIntosh: Canada is a nation created indefiance of geography.

    John A. Macdonalds National Policydesigned to strengthen east-west linkages

    a) tariff barrier b)transcontinental railroad

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    Harold Innis

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    need theory sensitive to historical andgeographical context. Dirt economics.

    Canadas history can be understood in termsof a series of staples: fur, fish, timber,

    minerals, oil and gas

    staples production: primary resource activitiesand primary manufacturing activities in which

    resources are major inputs to the production

    process

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    staples economy: a region that dependsprimarily on the export of raw and semi-

    processed materials to a more advanced

    manufacturing economy(Pat Marchak).

    Staples industries are leading sector ofeconomy and set pace for economic growth

    economic development a process ofdiversification around export base.

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    spread effects of sector realized through fourtypes of interlinkages

    a) backward linkages b) forward linkages c)final demand

    d)fiscal linkages

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    two basic impediments stem from staplesproduction

    a) export mentality b) firms are often large, oligopolistic Mel Watkins: staples trap: once a region

    specializes in producing staples, it finds it very

    difficult to reconfigure production into other

    types of sectors

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    Cyclonics result is susceptibility to volatile resource

    prices, market demand, crisis

    metaphor of cyclone - boom-bust dynamics each staple has own rhythm, timing

    local staples region locked into set of globalrelations producing dependency

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    Orthodox economists ... attempt to fit theiranalysis of new economic facts into ... the

    economic theory of old countries .... The

    handicaps of this process are obvious, andthere is evidence to show that [this is] ... a new

    form of exploitation with dangerous

    consequences." Innis, 1930.

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    orthodox economic theories presume progressand equilibrium

    for Innis (like Polanyi), markets have to beorganized

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    non-market institutions are foundation ofeconomics rather than abstract laws of supply

    and demand

    Innis brings together three concerns ignored inneoclassical economics

    triad of concepts

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    1. Geography a) natural resources and physical geography

    b) spatial relation