What is economic base theory?
Economic base theory is the notion that a region’s economy is divided into two sectors — the base and non-base sectors. Regional prosperity is achieved by building up the base through exporting more goods from the base or preventing fewer imports.
What are the leading theories of international trade?
There are 6 economic theories under International Trade Law which are classified in four: (I) Mercantilist Theory of trade (II) Classical Theory of trade (III) Modern Theory of trade (IV) New Theories of trade.
What is growth pole model?
The core idea of the growth poles theory is that economic development or growth is not uniform even an entire region, but instead takes place around a specific pole. The pole is often characterized by a key industry around which linked industries developed, mainly through direct and indirect effects.
Is the economic base theory a trade based theory?
The second concept which can be fruitfully applied to regional planning is derived from the theory of international trade, according to which the growth of a country depends on the volume of its trade with the rest of the world.
What are the two elements of the economic base?
As a consequence, the two primary measures of economic base studies have been employment and payroll data. Employment growth generally fosters population growth because job opportunities attract new residents.
What are the three trade theories?
A modern, firm-based international trade theory that states that a product life cycle has three distinct stages: (1) new product, (2) maturing product, and (3) standardized product.
Is Silicon Valley a growth pole?
A recent example of such growth pole effects may be found in the Silicon Valley in San Jose, CALIFORNIA. The information technology (IT) industry here grew at a meteoric rate in the 1990s, but the economic stimulus was not restricted to the state of California or even the United States.
What is growth center theory?
The theory of growth pole (centre) explains the development impact of the existence of the growth centre in geographical space; it is not by itself a theory of location which explains where the growth centres are or where they will be in geographical space in future.