Theorie s

Thc two edirors of this bock have historicaily approached economic

development from very differcnt perspectives. Robert Mier"s approach
always becn community based- His focus has been on developin! jobs
has
and
o f Lo c u I
wealth in.the ciry's neighborhoodi. His goal has always been ro impro"e
rtre
conditions of neighborhood residents thro'gh economic development-
particularly the conditions of rhosc in poor neighborhoods. Economic
Richard Bingham is an unabashed cmpiricist Heis inreresred in rhe
rocarion
and movcment of jobs and industries between dnd within rcgions. He
interested in describing a4d explaining cmpiricaily verified changes
is
in rhe
Developmenl
locational patrerns of indusrries and in cxplaining and predicring rhe
development and growth of agglomcrations such as edge cities.

How could two individuars wirh such apparentry unrcrared inreresrs join Perspeclives From Across lhe Disciplines
together to edir Theories of Incar Economic Devcropntenr: peoprcti,es
From Acmss the Disciplincs? Through casual conversarion borh found
that thcy had one important lifc expericnce in common_-service in
Vietnam- The Victnam War is truly a common bond that rranscends
ideologies. From this common bond, a profcssional and personal
friendship developed in which borh found their phirosophies simirar
their approaches differcnr-hcncc rhis book; hence rhis dedication:
bur edired by

TO THE VETERANS OF VIETNAM

Richord D. Binghom
Rob erl Mier

SAGE Publications
htlemational Educallonal and Prolessional Publisher
Ncwbury Park London New Delhi
26 LOCATION AND SPACE THEORIES
1
Schmenner, Rodger (!982)- Making Business
Imationa! Decisiotrs' Englewood Cliffs' NJ:
Prentice-Hall.
to the
S.*rr, S.nt"-in H. (1985). "Location of Economic Activity: The JRS Contribution
Recent Literaturc.' Journal of Regional Science 25
(4\:678'
;Locarion Theory' Regional Sciencc' and Economics--
Theories of Regional Development
Thisse, Jacques Francois (1987)'
Journal of Regional Sciencc 27 (4): 519-5?A'
( 1988)' Itrc Pres ident's National Urban
U.S- Department of Housing and Urban Devclopmenr
Policy Report- Washinglon' DC: Author-
Wasytento, t"tictrael (1984).
*The Effecs of Business Climare on Employment Growth in th€ ARTHUR C. NELSON
States Between lTl3 and l98O- (RePort ftr thc Minnc$ta Tax Srudy Commissim)'
*Rescrvadcn Wages: Your Community May Be Compctitivc'-
White, Sammis B. (t98?).
Economic Developmcnl Quartcru I (February): 18-29'

This chapter reviews the rnajor rheories describing regional development,

Suggested Readings
identifies the apparent theoreiical underpinnings of U.S. regional devel-
(Chaps' 2-4)' Homewood' lL: lruin'
opment policy, and poses the rheorerical underpinnings of furure regional
Btair, John *. ,rnrrr- IJrban and Regional Ecouomics developments given current policies and trends. The focus is on applying
Blair, John p. and Robert Prcmus (1987). "Major Factos il Industrial
Locatim: A Revie*'-"
Economic Development Quarterly I (February): 72-85- regional development theory to local development policy-
Charney, A. H. (1983). "Intraurban Manufacturing Locational Decisions and l-ocal Tax But. first, what is meant by re giona! de.relopntent.) The term refers to
Differentials." Jo urnal of IJ rban Econonics 14: I 84-205' change in regional producrivity as nreasured by population. employrnent,
Rcgionol Economics (]td ed'\'
Hoover, Edgar and Frank Girratan i (1984\' An hnrcduction 'o income, and manufacture value added. It also means .social dcvelopment
New York: KnoPf- such as the quality of public health and welfare, environrncntal quality,
Norgaard'Richtrd(l-984)...CevolutionaryDevelopmentPotential..'IlndErononics6o..
159-167-
and creativity.
Premus, Roben (1982)- "Lrcation of High-Tech Firms and Regional
Development'- Wash- For whom is regional development beneficial? European settlement of
ington, DC: U.S- Congress' Joint Economic Committee' North and South America was attriburable to expansionary policies of
Rosen, Markets and lmplicit prices: producr Differentiarion in Pure
i. (lg?4). -Hedonic European institutions. Colonies served morher couniries through exploi-
Competition.- .lo ofuP o I it ic al Econonl S2: 34'55'
r na I
cliffs NJ: tation of resources. Tormother countries, regional development meant
Schmennei, Rodger (lgg2). iaking Business ltcational Decisions. Englewmd
Frenrice-Hall. creating greater wealth. To native Americans, regional development meant
Development
Skoro, Chades L. (1988). 'Ranking of State Business Climates'" Economic genocide. To colonialists, regional de.r,etopment meant the hope of a higher
Quarterly 2 (MaY): 138-l 52. quality of life relative to their social srarus in the mother country. Ultimately,
ThisriJacqu"s_Francis (lgg7). -Lomtion Theory.- lournal of Regioml Science 27 (Ne
colonists saw greater opportunity for wealth and influence by seceding from
vember): 5 l9-528.
the mother country to form their own countries and institutions. These new
White, Sammis B. (1937)- "Reservation Wages: Your Community May Be Competitive'"
Economic Dcvelopment Quarterly I (February): 18-29' countries extended regional development further into the hinterland. Now
most of the New World, to a large extent, has been devetoped.
tiirittrin the New World, a number of different tensions arose. Dominant
regions exploited the hinterlands. In the United Stares, the tension berween
the industrial North and the agraiian South led ro the Civil War. In more
recent tirnes, differences in regional development are viewed as attribut-
able to some regions being chronically underdeveloped, such as Appalachia,
or undergoing structural change associated with business and technological
cycles, such as the manufacturing belt. Effective regional development
policies will be different in borh regions yet federal regional development
policies often do not differentiate berween regions.

27
 Theories of Regioral Development 29
28 LOCATION AND SPACE THEORIES
driven by economic rules applied to space. lt focuses on firnr productivity,
In this chapte r, regional development does not mean the exploitation
of
firm location, and agglomeration economies leading to ciries. lt explains
virgin territo;y or the domination ofone culture over another but' instead'
how systems of cities are tbrmed and describes the econornic relationships
imf,rouing the conditions of chronically underdeveloped regions or
re-
berween cities within a hierarchy. Regional development is sustained
gions undergoing cyclical change- through vertical and complementary linkages among industries. Three
A note onimportant terms is in order-. The regional development litera- kinds ofexternal relationships are critical for regional development: trade
ture distinguishes between core (or and Periphery, yrolrth center characterized as imports and expons of goods and services; migration of
""ite''1
(orpote)andhinterland'andleadingandlaggingregions.Theproblem people in their capacities as both consumers and workers; and migration
ior policymakers and practitioners is knowing whether their region is core of other factors, principally capital for investment.
o, p".iptt"ry pole or hinterland, leading or lagging. Different development Economic activities of a region can be divided between industries
policies may come to play in each situation. producing goods or services for export to other regions and industries
The.tore(orcenter)andperiphery''conceptdistinguishesbetween producing goods or services for local consumption. The economic develop-
regions on a gtobal scale-regions can be composed of entire nations or ment of a region depends on its ability to raise the volume of exports relative
collections of states. In colonial times, England and Spain were the core to consumption oflocally produced goods and services. The ability ofa region
(or center) while the colonies of North and South America were the to sustain long-run economic development deFrends on irs ability to continue
periphery. In modern times, at teast until after world war II, the northern to export goods and services. This requires attracting capiral and appropriately
at"t"t *ir" considered the core (or center) whl.le the southern states and skilled labor essential to sustaining its development (North, 1956).
much of the West were considered the periphery. In many regions, however, there is much to be gained by producing
The ..growth center (or pole) and hinterland" concept distinguishes goods and services for the local population that a region must otherwise
within a iegional context. Growth centers are urban or extended metropol- import. Where large regions can replace goods and services that are
itan areas, here called "urban fields"; hinterlands are outside the urban imported with locally produced goods and services, the flow of capital to
f,reld. Thus, within both core and periphery regions, there will be growtb other regions is reduced- Thus residentiary services-which are popula-
centers surrounded by hinterlands. tion-serving enterprises such as hair dressers, family doctors, and auto
The..leading and lagging" concept distinguishes advanced regions from mechanics-and industries that produce goods for local consumption-
underdeveloped regions at both the global and the regional levels. The such as processed dairy goods-are necessary to sustain development in
periphery b" colnposed of growth poles that are leading regions while any region (Tiebout, l9d6). These principles apply ro both urban places
""n are lagging. The coie can have hinterlands that are
iheii hinterlands and systems of cities-
leading regions- In addition to similar treatment of economic base, both schoots of
thought recognize that regions will progress through stages of growth.
There are two general views 'rf how regions evolve from tower stages to
Theories of Regional DeveloPment higher stages of development, one based on the work of Walt Rostow and
the other on ttrst of John Friedmann.
There are two dominant schools of ttrought on regional development. Rostow (1960) sees regional development progressing in five stages:
The development-frcm-above school views regional development as es- traditional" takeoff preconditions, takeoff, maturity, and mass consump-
sentially emaDating from the core and growth centers and irickling out to tion. Progression from one stage to another may be delayed or rendered
the periphery and hinterlands. In its crudest sense, this school views unachievable by a variety of factols. His model is meant to apply to nations
regional development as starting from worldwide demand or critical innova- but it is useful in the regional contexr as well.
tion that filters down to national, subnational, urban units, and hinterland A region in the traditional stage of development is one in which there is
units. The developmcnt-from-below school does not necessarily dispute the limited availability of technology relative to other regions and there
path of development-from-above but, instead, argues for regions to take probably exists a hierarchical social structure. This describes &e South
contrrol of their orvn institutions to create the life-style desired in the region. between the Civil War and World War I. It may still apply to some substare
Both schools have as a common ground the application of economic regions of the South.
base theory. Economic base theory pri:sumes that regional development is
 Theories of Rcgional l)etelopmenl -l I
LOCATION AND sPAcE THEORIES
30 reristics ol'his "urban field" concept (Fricdmann & Miller. 1965). The
economic and social structure begin to "upward transitional" regions experience net irr-migration and have need
In the second stage' the region's in lagging
when:lading regions make investments for new bapital "Dou,nward transition" regions experience out-nrigralion
.;;s;:;i;;; and manufacturing processes and may be overcapitalized or have obsolete economic structures. "Resource
resions in transportarlon' communication'
of exploiting naturat resources' During this stage' manag- frontier" regions are devoted to natural resource exploitation such as
;;:,"#t;fi; to-rhe lagging region' A new social mining, forestry, fishing, and agriculture. He also includes "special prob-
ers and skilled labor a'" tri'f"ned
One example-is the change in economic' social' lern" regions as a catchall fcr otherwise undeftnabie regions- Each regioir
and political elite emerges'
to the Tennessee Valley has its own developnrent opportunities and constraints.
and political composrtrorlof the South attributable
Beyond the similarities in treatment of economic base and stages of
AuthoritY.
such as a major war' infuses development, the two schools of thought diverge. I will first examine rhe
Takeoff occurs when an external stimulus'
regions into lagging regions' and when the new development-from-above school, then the development-from-below school,
investment by l:ading
that investment' In the southern and then hazard a synthesis.
;;;;;i;;J p.iitical order iorks to sustainstimulus' It led to investment into
context, World War II was the external
such as major research and production centers' The Development-From-Atiove School
io"i'f it-u.y-r"f uted operations
infrastructure was sustained in
After the war' the,""""h and production This school is rooted in traditional regional and neoclassical econornic
and.by inducing private sector
Ol., ,frt""gn continued national investment models. It assumes that regional development occurs when stimulated by
investmentinindustriessuchasPetrochemical,ellectronics'andaerosPace. exogenous forces such as exporl markets, investment fronr outside, and
lasts 20 to 30 years' The Sou-th'
Rostow suggests that ihe takeoff stage migration. Regional development is seen as a product of price equilibriurn
in the l9?0s' about 25 years after
for example' entered the maturing stagi and disequilibrium. This school includes a political-economic vicw.
good-s-and services are produced
World War Il- Many formerly imlpotteA
condrm'ittat' by 1975' the South's economy had
localty. Miernyk (19?7) Price Equilibriunt Models of Regional Developnrcnt
the proportion .of workers
l"it".rif*O its economic base so much that average while employ-
in agriculture had fallen to the national Several models suggest tlat regional development occurs as a process
""glg"a utilities' and government grew to of equilibration between regions. Many models aim to explain interna-
*Jniin communication, transportation'
tional development patterns but they are applicable to regions within a
exceed national averages'
mass consumption stage occurs when
a region exports many nation as well. i
The fifth,
i'iottn"'lylmported' The South may already be in Heckscher (1919), Ohlin (1933), and Balassa (1961) developthe price-
goods and services,ttu,
equaliTat!on model wherein reasonably rnobile factors of production will
this stage. - L-., ^-r:^hranino seek locations generating the highest return. Investment by southern tex-
Friedmann(1966'1967)offersaslightlydifferentbutenlightening
suggests
relationship' Friedmann tile manufacturing firms in the Orient is an example of this. As investment
view. Characterizing a center-periphery
in whictr tire relationship between the center and in underdeveloped regions increases, however, so does the competition for
a continuum over time
stage' there is very little inter- production factors, resulting in increasing factor prices. Over timc, returns
its periphery changes' ln the preindustrial
ia nature and relate directly to the to factor investments equalize. In the 1980s many textile operations were
action. Regional economies aie colonial
ties are severed' the regional economies find moved back from overseas to southern states as the price of labor, inputs,
;;;;;;;*ry. As colonial
ways to relate to e"ch oth"' principally in the form of coinage and management, and distance rose.
The relocation ofmanufacturing from northern to southern and western
conuenticnsontradeandtariff'Withtheriseofindustrialization'some
virtually lives
;;;;;;;"te exploited by others' At this stage' the center states is at least partly explained by
differential factor prices. Wheat ( 1976,
a function of further
;E;; periphery; the peript'ety develops only as stage doe s the periph-
1986) explained that a high percentage of manufacturing job change
postindustrial between 1949 and 1967, and berween 1963 and 1977, was related to
exploiration by the cent!r. dnty in ttre
to develop economic independence- differential factor prices such as labor and energy. He also noted that
i""" ,tt" opportunity (or the need)
"ryFriedmann goes on'to pose how regions relate to one another in a improvements in transportation reduced the cost of shipping goods from
postindustrialeconomy.Hedinioesatheoreticalnationorsuperregioninto southern processors to northeastern markets.
"core" region has charac-
five different kinos oi individual regions. The
 Theories of Regional l)evelopment --13
LocATroN AND SPACE THEORIES
32
model is unsatisfactory in dealing u'ith the phenomenon seen durin-! the
approach to explaining re-
Mvrdal (1957) suggests a leading-lagging e causctio't'
past2O years of hinterlands among older AGCs growing while the AGC-s
gi;;;i ;;tpmentl He develops the theory of cumulati' themselves decline (Nelson. 1990).
advantage due to location'
Leading regions possess initial iomparative
and other facrors. Aggtomeration results in
ever-increasing
lJ"rrir"*", regions to lagging
Dynamic D iseq u i libri um
ior"rrrn"n,. Little investment moves -from leading region elites Schumpcter(1934, 1939, 1947) observes rhar one fearure ofcapitalism
leading
;gi;;;- Investment that does occur is controlled by
dominance' Lagging regions are further inhibited in is its propensity to destroy old regintes and create new ones. This is known
io"urrur" economic
workers' educated as dynantic disequilibriunr. Obsolete products and processes are reolaced
development because of backwash factors' Skilled
capital that may emerge in the by more timely and efficient ones. The infrastrucrure of a leading region
inOiuiiuutr, business leaders' and venture may succumb to aging and obsolescence- Investment in new industries
to the leading region to seek higher returns'
i"ggfig region will be drawn may be more efficient in the lagging region. Thus manufacturing reloca-
produced in the leading regions are sold to the lagging
CiiaJ"nOl"rvices tion from the Rust Belt to the Sun Belt is explained in part by the greater
cannot compete'
regions at such low prices that tocal industries
"But
one feature of leading regions is that they tend to spread out into investment returns available in the South and West relative to tearing down
lagging regions will have some conrparative advan- and rebuil(ing infrastructure in the North.
tagging rigions- Most
resources' that result in positive in'estment Product life-c1,cle theory (Schumperer, I939: Vernon, 1966) expands on
t"iE ,ititi"ipally in natural
the backwash effects' the concept of dynamic disequilibrium. A new product is developed and
no'*. Wh"n tfre spreaO effecrs become strongerlthan
leads to development in the lagging region- Public exported, resulting in rising regional incomes. The product is produced in
causation
"ornutati"" in lagging regions' This may be other regions when there is sufficient locat demand. Indeed, the innovating
;;i"y ;"" be used to induce investment
in leading regions' The region may eventually import the very product it developed. The concept
Oon.iy discouraging certain kinds of investment can be applied to regional devetopment. Consider microetecrronics pro-
effect is price equilibration in the longer term'
growrh pole concept duction (versus research and development). Microelectronics technology
Perroux (195j) and Hirschman (1958) developthe
fueled by expanding metro- was initially developed and mass produced in the San Francisco Bay area.
*h"." d"u"lopment in hinterland regions is But the Bay area has become a costly place for workers to tive. When
investment trickles out from the growth
politan centers- In this context'
to the hinterland' lt may take the form of manufac- assembly processes achieved certain economies, high-tech firms realized
pol" o. growth center
(Nelson, lgg0) or rhe serrlement of population into the that with minimal investment and work force training much of the asscm-
iuring iivestment
bly process could be doie in the less cosrly lagging areas of California or
which were formerly part of the hinterlands (Nelson and Dueker'
"*oril'r,
1990). Trickle effects can b"-t""n within an urban
field as a pr'rcess of other states. As new manufacturing centers emerge in the hinterland,
from centers to hinterlands and from core to peripheral however, new forms of innovation in assenrbly and even in production are
deconcentration
possible (Glasmeier, I 990).
regions.
_Richardson(1985)combinesnotionsofcumulativecausationandgrowth Weinstein et al. (1985) offer a regional life-cycle model built upon
One limitation of Nikolai Kondratieff's long waves (see atso Hall, 1990). New enterprises
poles in his autonomous Srowth centers (AGC) model'
to developmenr emerge in lagging regions because leading regions are srapped with
ih" gro*th pole model is that it is usually used explain
substate region- Richardson suggests a obsolete and unprofitable infrastructure. But regional life-cycle theory
pattJrns of an individual' often
'national of AGCs where growth rates differ among AGCs over time also holds that newly developed regions will themselves decline and by
system
He asserts that time bypassed regions will have been retooted. One should thus expect
based on agglomeration economies and locational advantages'
with AGC growth. older AGCs an eventual decline of the Sunlelt and reemergence of the Rust Belt
that hinterl-a-nd growth is highty correlated
economies of agglomeration as new capital is (Nelson et al., t992; Rosenfeld, 1992).
suffer from weakened
to younger AGCs. The diffusion in investment and population
diverted
starts gradually' A Political-Economic Vew of Development-Fronr-Above
away from older to younger AGCs (and their hinterlands)
Inthisrespect'life-cycletheoryexplainsregionaldevelopmentpatternsover While lagging regions may grow and leading regions may decline, it is
time'Atsomepoint,however,thediffusioncompoundsonitselfandcreates a particular groupof individuals and institutions---the capitalist class-
tt" oynu*i", Lf cumulative causation, on the other hand, Richardson's
 . t, ai.]t

Theories of Regional I)e velopnenl .15

LOCATION AND SPACE THEORIES
34
center-hinterland landscapc larger than Friedmann and N'lillcr's (l9tr.5)
to dominate and others always to be
that may cause some regions always urban fields or Berry and Gillard's ( 1977) commuting sheds. Thcv call this
(1985) summarizes this view' First' cities domi- the "exurbanization" of America.
;il;;i";,. *ichardson
in the means to e''(tract from $'e
nate their hinterlands as ttrey-invesr savings are attracted
Some evidence on the success of developnrent-frorrr-above is oflcrcd
ii"i".i""ot resources that make cities richer' Rurat here- It includes general summaries of the patterns ofregional population
differenriation of production
;;;;;;;; ""* higher yields. Second.o[spatial
natural resources, or of
and manufacturing employment growth and decline in the last quarter of
;;;;;" ,o on!""n- distribution -different the twentieth century. lt also inciudes a review of the determinants of
.,"",p"n".i""costfunctionsbuttotheconcentrationofcapitalinlarge manufacturing shifts among regions.
from cities only to' those
;tstems. Third' because capital flows
;;;;,t* high"tt and not necessarily to where
hinterland locations where returns Core-to-peripltcry nTlrruJ'ottrrrirrg. Ninetccnth-century firms had to
the
"tt
greatest social outcomes' there will always
be
,ir.ir-ir*""-"nt would have Fourth' because near the source of markets, labor, materials, and transportation facilities.
he narts of the hinterland that are deprived of investment' Those factors strongly favored manufacturing location in Nerv England.
greatest opportunities for
;r-#ffi;;,r.,li *rir flow to areas offering
with high nonunion
the
membership'
the Middle Atlantic, and the Midwest. In most of the twenrierh century.
such as areas however, population and associated economic activity has dispersed from
"*ifoita,ion powel (Holland' 1976)-wielded
Alongi the same lines' mesoecinomic the manufacturing belt (Cohen and Berry, 1975i We bber, 198.i). Figure 2.1
large firms or, one might argue' investment pools such as pension
by very
among regions' The shows one way in which to divide the nation into core (Northeast) and
irinor-i-ooilinate the distribulion of development
periphery (Midwest, South, and West) regions. Table 2- l shou,s rhe chang-
which mesoeconomic interests operate grow ever
i;;;g regions within of industries and the ing share of manufacturing activities by census region since 1899-
control
more influential through ever-increasing regions General trcnds are clear. The Northeast saw the greatest loss of manu-
firms locare in leading
;;;t The result is ihat mesoeconomic facturing jobs since World War II. Total manufacluring employrnenr in the
left with smaller scale' lower profit industries'
and the lagging regions are Midwest remained fairly constant but rose steadily in the South and in thc
West. The South has emerged as the nation's dominant manufacturing
The Evidence and Assessment region. Indeed, virtually all of the nation's loss of manufacturing jobs
States has pursued two sets
As Markusen (1987) observes' the United since its peak in 1977 can be attributed to losses in the Northeasr and to a
each geared to different levels of space'
of regional development policies lesser extent in the h4idwest. Since 1967 the Northeast lost 1.2 million
development of periphery regions. such as the
At one level, it has pursued jobs, while the Midwest bst 700,000 jobs since 1977. The South and Wesr
sootr'"nopartsoftheWest.Atanotherlevet,ithasstimulatedpopulation combined added more than2.2 million johs since 1967. To the extent that
In both
growth centers tc hinterlands'
and economic deconcentration'from U.S. regional development polic5' intended to elevate lagging regions'
cases, U-S. policy seems to be based on cumulative causation theory' economies at least with respect to manufacturing, it has succeeded.
periphery
itor" pofi"ils diiectly affect the interaction between core and On the other hand, between 1982 and 1987, the manufacturing base of
Bourne (1980) recounts hovv
and between the centers and the hinterlands' the Midwest expanded while that of the South held steady. The South
over developed areas''sub-
U.S. d"u"lop*ent policies favor undeveloped added about 23,000 manufacturing jobs in this period while thc lvlidwest
over urban mass transPortation systems' new
urban and rural highways added 102,000 jobs. These trends suggest that the cyclical nature of
housing' and
ir".i.g over rehabilitation, low-density over high-density
of existing systems'
manufacturing investment could be swinging in the direction of the Mid-
new water and wastewater systems over rehabilitation west. The West added the gieatest number of manufacturing jobs in this
concentrated in
The result is not that regional development becomes period-l 67,000-while the Northeast continued its two-decade decline
gro*tt centers but that growttr centers themselves spread out into
the
by losing 442,OOO jobs. One reason for the resurgence of midwestern
regional landscaPe. manr:facturing is its large base of skilled labor, physical infrastructure,
were
ilttrough poliiies appear to be based on cl mulative causationlhey level of public investment in education, and use of tax concessions to
autonomous growth centers- Whether intended or
never intendeO to creaie reduce taxes on capital (Nelson et ai., 1992).
not, this policy orientation has integrated of growth
centers
lh.:it
-:tg What are the particular determinants of core-to-periphery manufactur-
hinterlands.NelsonandDueker(1990)demonstratethatabout80Toofthe ing shifts? Wheat (1986) estimates that the leading determinants of change
growth
nation's population now live within a functionally integrated (text continued on page 38)
o\

Stiltcs (county cllssiljcirtions: 1992)

Figure 2.1. census Regions nnd Divifiionsl contigttous 48 tJ.S.

TABLE 2.1. Employment in Manufacturing by Regiont 1947-1987 (numbers of employees in thousands), Percentage of U.S. Total
North- % oJ U.S. Mid- 7o of U.S. % of U.S, % of U.S,
Year Natlon east Totnl west Total Sourh Total llest Total

I 987 l 8,950 4,351 23 5,508 29 5,839 3 I 3,246 11

I 982 I 9,040 4,799 25 5,406 29 5,8 16 30 3,073 16
t917 19,590 5,008 26 6,272 32 5.593 29 2,1t7 14
t972 19,029 5,306 28 6,135 32 5,22t 27 2.367 13
t967 t8,lsz 5,5?3 30 6.059 33 4.553 75 2,305 t2
I 963 I 6,23s 5,r90 32 5,239 32 3,780 23 2.025 13
r 958 t5,423 5,242 3^ 5.107 33 3,382 22 |,779 t2
1947 t4,294 5,429 38 5.t09 36 2,710 9 r r.054 7
SOURCE: Data from [9E7 Census of Manufacturing, U,S. Dcpetnent of Commcrce

{
 LOCATION AND SPACE'I'HEO RI F]S
38

jobs' based on percentage change of man-

among states in manufacturing -t
accessibilit;'
;;;;;;"ti;; job growth between 9?3 and 1977 ' were market
9) c
c o c a

;;;;A:,,ioo"*," climate ar 159o, rural altraction at llTc' nonunionized .9cc .o o

!L
z
retirement attraction- +oo .9
fo,"", wage labor at 67o' thresholds at 5%' and O.oc! f
oLo!)^J x f
x
"nJ These factors combine ro explain 96Vo of the variarion in trl
IJ
"*""i,1* ",07.job change' :ioi?;
"'l"l
manufacturing 6! o oo 'a
and nonmet- c
,r"AV olih. uariations in the structure of metropoliran nol.: c f,f
Ou =
production, Btackley (1986) found that metropol- O E
d;;;
ii"'n
nianufacturing
possess the significant agglomeration economies
oroduct deuelopment and piot""
"ounri", innovation- Statistically
production
needed for
significant vari-
worker hours'
r@Hffiffi[ '-
.9

Iii"t i".to"d value aoaea uy manufacturers'

taxes' among other faciors'
fuyroU, and state's manufacturing
_9

has ertended
Center-to:hinterland manufacturing. While development
fromthetraditional.or"oftheNorrheasttothefrontierandlagging
,"gion, of the Midwest, south, and west, wtat is happening
between
that centers are F
and their hinterlands? Recent research suggests :
""i,"r, more integrated with their hinterlands'
-
becoming
ln the next
In 1916 the U.S- suburban population was only 5'4 million'
experienced growth rates at twice the
three decades, suburban e'merica €
'=
nationalaverage.Manufacturingactivitiesfollowed,particularlythosesm.all-
(Lessinger' 1986)' I
,"ut" proau"tiJn firms that were market or labor dependent .!
new heights in the middle of the
The exodus from the central city reached
Industrial Conference Board (NICB) found that
century. The National Eo
central-citieslostl0Tooftheirmanufacturingjobsbetweenlg4?andl958.This tt7 E
to
**"""o*puniedbyariseinmanufacturingactivitiesinsuburbanlocalities
(Cohen and Berry' 1975)- '7:.:
and in regions outside the manufaciuring belt )€!
An example of how centers are becoming integrated with their nlnt11 ab 7
landsisofferedinmywork(Nelson,l990).IadaptedBerryand.cillard's
on urban
(1977) commuting shed definitions to devise exurban areas based ?
fields conceptualized by Friedmann and Miller (1965)' I then
investigated 6eA
"'=
em-

.l;
the distribution of population, total employment' and manufacturing
exurban' and rural counties between
ployment among uiban' suburban, Eo=
c= d

*li
centers and 6:
iS6S unO 1985. Figure 2.2 illustrates the national pattern of
g
=Bo
their hinterlands.
(central counties
Although total employment in large central counties
of metropolitan areas wiih nrore than 500,000 poputation in 1985) rose-by
million to 34 million, manufacturing empioyment fell C'L t
SLVL, from 22.6
(defined as noncent-
UE''
from 7.6 million to 7.1 million. In suburban counties
ral metropolitan counties in 1960), employment rose by lllTo' from 5'6 ci,3B
oFE
million to I1.9 million, but manufacturing employment rose by only 167o' -o
MIE
c

from 2.3 million to 2.6 million. Employment in small central counties taz.2
39
 ,rl+f,.'
'!ii;I;i
,ri;r :

'-:,
I-OCATION AND SPACE THEORTES

(defined as central counties of metropolitan areas with less than 500,000

population in 1985) rose from 8.2 million to 14.6 million. or 787o, while
manufacturing employment rose from 3.2 million to 3.5 million, or l0%.
Ernployment in rural counties rose from 3.2 million to 5.6 million, or77%:.
while manufacturing employment rose from I million to 1.5 million, or C
! (40 8i!tSxLx!
46%. (See Tables 2.2 and 2.3.) c
€33=F=
sqi
I found that overall employment in exurban counties (located beyond 3
o i5
a-if
-
suburban counties and up to l0O miles away from central cities) rose by € o
85%, from 7-6 million to l4.l million. Most interesting is that manufac- ';.
turing employment rose from 3.4 million to 4.5 million,or 319o. This was P
=
a
the largest increase in manufacturing jobs among all areas during this
period. (See Tables 2.2 and 2.3.)
5
€
S
i
v*
=--
sFs**r
9.:o-e;
I also fgund that while total manufacturing employment in the contigu-
ous 48 states rose from 17.5 million to 19.3 million-a change of 1.8
o
.;
\o
tos SeFCRe
6
million-manufacturing employment outside central cities rose from 9.9
million to 12, I million-a change of 2.2 milliotn. Thus, while exurban areas ol
dl
accountedfor only 207o ofthe total numberofjobs created during this period, 6l
_l q*a)t
they accounte d for 48% of the location of new manufacturing jobs. More c5-6
important, they accounted for 6l% of the entire share of manufacturing
3t :t v-
.; €t9!6 <i .,i .i
al u3 la
change. By comparison, suburban counties accounted for lTVo ofthe total EI t-
increase and 2l9o of the shift, small central counties accounted for 67c of 6l t-:
the increase and lSVo of the shift, and rural counties accounted for 22% of -l
vl
-t I

the increase and 27 Vo of the shift. (See Tables 2.2 and 2.3.1
3l is
t:
From 1960 to 1985 exurban counties added more population than any (JI o € =-QC
-cr€ t"
other area evaluated. Population rose from 42.5 million to 59 million, an }.l q .f+dd t;
IE
increase of nearly 16.5 million. Exurban counties accounted for 3OVa of 5l O
the share of continental U.S. growth. Exurban counties grew faster than 9l
all other counties in both real numberi and share of growth. By contrast,
large central counties accounted for a quarter of the increase, suburban
:l ct
ol
E
E
counties accounted for l8%, small central counties accounted for 2lVo,
EI q€
bl N 9a o
and rural counties accounted for less than 7 9o - (See Table 2.4.) o. I
q 9r
d d o {'ct o
j
What are the determinants of the center-to:-hinterland (or exurban) EI
trl I

manufacturing shift? My colleagues and I (Nelson et al. 1992) used EI :

6l
regression analysis to find that manufacturing growth in the exurbs is
negatively associated with nretropolitan manufacture value added, manu-
tt:l I
I 'q
a-

facturing employment as a percentage of total employment, union mem- ol

'sI
q@ s-osl
bership, property taxes, and distance to a small airport, and positively ,3 q
6d
R3:RI
qtF:rirjl
a

il
I

associated with the adult population percentage ofhigh school graduates, =l U

expenditures in public education, and farm population. Within the exurbs, ?l
ql ,:
manufacturing growth is not associated with highway, large airport, or
central city accessibility. The reason may be that, within any given exurban
dl
rnl U
G E
!-
EI
f . d
E

area, such factors are almost always present.

JI J6 I

ral { o_L
s5E"l
I
U

(texl continued on page 44 fll o o

)q
=!-l
b x i
que,il Xl )o
5
N

TABLE 2.3.
Change Growth Sllrre
Change
r965-1985 1965- I 985
I9E5 r965.1985
1975
County Class
(463) -6.O9% -26.19V0
7,126 7,127
Large urban 7,590 t6.12% 20.63%
2,625 364
2,26t 2,359 18.05%
Suburban 319 to.o2%
3,453 3,s03
Small urban 3,184 3t.r3% 60.56Vo
4,507 I,070
3,437 4,272 26.945q
Exurban 476 45.79%
1,328 .1,5 1 5
Rural 1,039 r0.09% 100.00%
t9,277 |,767
Total I ?,51 l l 8,539

(1965' l9?5' l9tl5)

tt"- at'-t t"l* s P(ttt"rns'U S' Depannrent of Comnterce
;;;-

. ,., ,,,
,j.; ,,. . rl

TABLE 2.4. Population Distribution in 48 Contiguous States by County Class, 1960.1985 (figures in thousands)
Pen,entuge
Change Change Growth Share
Cotnty Class I 970 t98A I 985 1960.1985 1e65.t985 t965.te85
Large urban 63.648 71,590 74,719 77,30t l 3.654 2t.45% 24,46%
Suburban 20,8 t0 26,425 29,39t 30,899 I 0,089 48.48% t8.08%
Small urban 30,3r2 34,850 39,479 42,t82 I I,870 2t,2790
.39,16%
Exurban 42,411 46,882 56,277 58.980 r 6,509 38.877o 29.58io
t
Rural 20,217 20,43 t 23,472 23,96.5 3.(rtl8 I lt. 19.r, 6.61r/,'
Total r77,5 t8 200,t79 723,337 233,378 .55.u t0 1l .44.k t00.00%

SOURCE: U.S. Census of Population and Currcnr Population Rqrorts (l'96O,1970. 1980. 1985)
 Theories of Regional Development 45
LOCATION AND SPACE THEORIES
44 Case studv- In recent years, local governmenl.s have facilitated the con-
influences is impressive' No less than struction ofspeculative industrial buildings, especially in underdeveloped
We found that the role of labor two for
f;;;;;;;"'en significant factori (and five variables' including regions (Falk et al.. 1980). A speculative building is erected wirhour a
are (a) existing man-
involve iabor considerarions. T'e factors tenant or a buyer in the hope that it will be purchased or rented by a firm
"l*"ir""l Firms avoid
il;i;;' (b) unions, (c) education' and (d) farm.population' in the future. Speculative industrial buildings offer firms the ability to buy
concenlrations because of overll' or lease space that is not only in place but immediately available. Firms
;;;;il; iranufacturing employment union labor because of work rules'
labor markets' ihey avoid are relieved of the time-consuming rvork of real estate acquisitioris, poten-
".trp"ii,"" educated workers because of the tial zoning problems, and dealing with architects, lawyers, and engineers.
il;l;;t"t, strikes' and so on' They seek labor
;;;i*r; productivity- They appreciate possession from farm households be- Firms are assured of all basic utility services (Fernstrom, 1979). The
*oif ethic' of mechanical skills' popularity ofspeculative industrial buildings has increased throughout the
of a perceived U"tt"i
""rr"
and the hostility of farmers to uni<inization' years with a strong presence in the Southeast and the New England states.
ror the relatively few new plants that Some surveys indicate that up to rrvo-thirds of all industrial location or
We observe if,ut th" competition
rnuy lo"u," in exurban t'"ti "t any
given time will result in winners and relocation prospects are looking for immediately available space such as
ior"rr. ffo* can exurban communities improve their attractiveness to that provided by speculativi industrial buildings (Southern Industrial
of manufacturing growth cannot Development Council, 1985). From a public policy vierv. specularive
aunutu"turing firms? Many detern'rinants
a1e' however' two or three
be changed, at least not very much' There industrial buildings are meant to induce economic development that may
places can influence' One determinant is edu- not occur otherwise. Forms of public participation include special financ-
O","tai"'^"" that exurban
expenditures and percentage of adult ing, extension of facilities and services, Iand write-downs. and joint
;;;i;;. nih locat public eiucation
high manufac-
p.p"i",i",i*ftfr a trigtr schoot education is associated with or waiving
ventures with private developers. The public risks losing resources if
is property taxes' Reducing buildings are not occupied. Speculative industrial buildings are usually
iu.int gro*rf,. AnoGr determinant
attract industry' Low property taxes per capita are local endeavors. They require substantial financial commitment and a
p-p-Jr',y ,"*"s may help
We suspect that' even in
urro"iui"O with high manufacturing growth' willingness to accept risk. In one sense, they represent a community's
capita (indicative of.places underlying commitment to a particular kind of economic development. .A
;;;;"; places with high property taxes Per reducing or eliminating
with high locat investrieni in-pubtic education), review of the speculative industrial building policies of Hall and Troup
on manufacturing may be effective in attracting new plants' counties, Georgia, is instructive.
proPerty taxes
'For'rot" exurban places' a third determinant that can be influenced may Hall County is situated within the Atlanta, Georgia, metropolitan statis-
airporr
l" A new airport can help, because less distance to a small tical area. Its 1980 population was about 7?,000. Its principal city, Gaines-
"irp."r.
is associated with hlgh manufacturing growth' ville, is about 55 miles from downrown Atlanta. Its 1980 population was
The following example is illustrative' During
the 1980s the Midwest about 15,000. By the late 1970s Hall County and Gainesville city officials
manufacturing plants and 200 transplant were concerned that growth in manufacturing employment was lagging
attracted six malor Japanese auto
employ more than-50'000 workers and produce more behind other parts of the region. They also knew that some firnis favorably
farts suppliers ihat and why? Generally
it an Z mittioo onit Where did they locate inclined toward locating iu the area could find no immediately available
"onu"tty' areas of Kentucky' Illinois' Indiana' space and located elsewhere. Hall County officials wished to make the
;;kG, they located in the exurban
iii"ttfg"t, Otrio' and Tennesseel (Florida et al'' 1988)' They also located cointy morc integrated with the Atlanta metropolitan area. It thus embarked
*i".""*"'"*pected: of low metropolitan manufacture value added,
places on a program to lure firms into the county.
of total employment' low Hall County's speculative industrial building program began with a
low manufacturing employment as a percentage
low taxes (occasioned by tax donation by the Johnson & Johnson Company of 2O0 acres for industrial
to moderate union membership, ProPerty
presence ofa small airport' relatively high adult popu- developmenl The county spent $2.8 million to improve the industrial park.
concessions)' and
expenditures in public
tu,ion p".""nt"g" of high school graduates and The money came from sale of industriat development bonds secured by a
education, and high farm population' one-mill property tax surcharge if land sales do not retire the debt. Since 198 I
How can these factors be combined to the advantage of
particular it has accommodated nearly l,O0O new manufacturing jobs. Tenants include
comrnunitieswherethehinterlandmeestheurbanfield?Considerthecasc food processors, a beverage distributor, an electronics assembler, a printing
of speculative industrial br-rildings in two exurban Georgia counties-
46 I,OCATION AND SPACE THEORIES Theorie.s ol Regional Developnent
47
company, and an automotive parts distributor. Hall County's program is fronr-above poricies wi,
fair ro be effective in ceflain
effective. It has yet to use the dedicated millage to pay IDB debt scrvice. cffe*ive in orhers. no,. rcgions bur rvirr be
In contrast is Troup County, Georgia. lt is adjacent to the Atlanta MSA sree r i ndu.srries in rhe "^n,npi"i.;i;;;";
M ic*..; ;;.u i; ;; ;; J#: :T11 3or
;c ie.s rhar su ppcrr
indusrries 'i,,r,.
and the smaller Columbus, Georgia, MSA. lts 1980 population was about in the wesr. oldrv, i iil",-#'"';H:l?',-"".1,il:"Ji;lJ".;
53,000. Its principal city, LaGrange" is the same distance away from Jo;;;''
downtown Atlanta as Gainesville in Hall County, or about 55 miles. Its ::il"'"'Ji'l:T::"-, l;1, "'
JJ'
;;;il:: r'' " r.," a 1",,, T,'.i;
i

According to Stohr and " ",

l98O population was about 26,000- Both Hall and Troup counties had Taylor ( l9g t ), developmcnt-from_below
roughly similar industrial development performance between 1975 and con tror r i n g M invclves
vrda.s back-waih ff..;'
;;;;ropmen r -fro nr- above. Dever _
1980. Yet, Troup County officials chose not to participate in the specula- opmenr_from_below aims,fo, "
effons can be made to reduce r."n"^,,i.""gr]i",i f nl"n".ason. 1973).
tive industrial building program for reasons principally relating to avoid- imp."",;;;;:;;Severat
ing financial risk. -this attitude reflected the antitax, antigovernment wirh the uJ" or
r,nd services beginning
irp..;;.'R;;;;ffi-"::1:
'no.t
vested w ith i n rhe re g ion.'S
sentiments of the population of the time. Between 1980 and l99O Hall
County o'utperformed Troup acrcss all economic development dimensions fostered. Much of thr:s
m;t, _;;;i;' i;ilr:,fi;H lh:;::. iT i;
effort;;;;;,n'.,"0 ,n.ou*h
such as per capita income and manufacture value added. substate regional administrati'e;;;;:,, decenrratized
Troup County, however, decided to implement a speculative industrial governmi.nts and bv
building program in the late 1980s. Troup County ofTicials saw that inc,udes:h*",p;;;.T:T1'.il:#;i*:Ti:fi,H,;il::'-*:;
b

economic development was occurring in other.counties that had vacant men r, a n d u g.opoi i,u
industrial space. After the decision was made to embark on the program, approach' If properry
n _d:."" roe ;.;
;. il:;". :::'::il ; :lff
::: ";l li'iX; ii
:rddressed' n""""".. ,iir
schoor shows promise
the Troup County Local Development Authority created an industrial park the social, polirical, unO for
lll.tntng
ular regions (cravei,'lss:).
..onnrni.'ou desired for parric-
in LaGrange. LaGrange donated 135 acres of land to the LDC, which the 'tcomes
LDC used as collateral to obtain another 500 acres. It later added 400 acres
to its inventory. Improvements on the first 135 acres and shell buildings Te r ri to r ia I Deve I opnte nt
cost about $800,000. Capital came from a local consortium of banks. Land,
grading, utility extension, and construction of shell buildings on the Tbrritorial developmeil
r.iews the role of regional
_theory planning as
500-acre tract cost $1.2 mil[on. Two million dollars in funds came from
IDBs secured by a two-mill property tax. The tax has yet to be assessed- ffi p'; d" u" op," t rro m g.J*,
:ITt ll,"f ;*::": f::, "e, 1984)' i t'.' o"r r n
r,
The program has attracted distribution, assembly, and packaging firms that
,

world war tt *u, ui.,11(wcaver' Region"ld;""i;;;;;;il#:

employ nearly 1,000 workers. p,anning*";;;;;lri,i;l*l*.J1":#:,,ilTl1rm:ml
and their hinterlands'
Regionar ,""oil;;"L"..
::ffi;I1*i:1ff' :" il;;
through a system of
The Development-From-Below School ; : "
; ;;J J'"*oon., * d
u
n rn tu nhe r i tu

ine<o*ip;;;.i;:#*'tolagging areas in tina or"".J#H;;:

Markusen (1987) observes that the history of U.S. domestic develop- "
,' ,Ji*"$a';J;;ffi.,ili:J,:';'jil'il1ffi
ment policy follows two dominant but parallel paths: (a) territorial expan- ,:i::n",,J:"1lilff,:nffi;
sion and consoiidation in the process of building a nation regardless of
F unc r ional De lopment
regions and (b) building regions based on achieving homogeneity of ve

political-economic and social orientation within them. As seen above, Functional developmcnt fhen..?.^^l:-- __
^
nation-building policies have been effective. Region-building policies,
however, may be misdirected in their aim to create homogeneity among
regions- The objective of the development-frorfl-below school is to railor
i:',"ttffi
the harnessing of
i:ffi rl,y**ixai[rriil"yr-:"":"iff
."sr.d';;.;";;;;TI*,
serected
can be achieved bv
:

ativegrowth"nui'ion"Juv{i"n".a,"".-iirffi'::j:JT"fi
:y; j,i::i;
developrnent patterns to fit regional character.
There is another angle to the development-from-below school. Becausc of the Southeasr and the p;*.;;;;istration
Bonnevill.
they are applied at a macro level across all regions. some development- west are two examples
of functional J;";;;il;,. of the North_
In borh cases, major
 of Regiona! Devetopnrcnt {9
LOCATION AND SPACE THEORIES
,.;i$!**n
.:-..,._._:j,?,..
es

j .:,,i..i,:.
agropolitan approach was originally intended to be applied to the
111s
electrical power and to (1979) and Stohr
*ur"r*uy, were harnessed both fo create cheapas a result ofthese efforts' -r1u;;51:,.f1jnt€rlands of Third World countries by Friedmann
Partly
a"f".i""t transportation more efficient' regions' industries builq migra- '- "^ (tbSt). ls principal features are applied to the United States by Friedmann
caiital *as invested in these aird Weaver (1979), Wcaver (1984)' and Clavel (1983)- The proposed
"Jrla"r"ul.
tion stimulated, and overall economic
well-being enhanced' On the heels '' oidanization of an agropolitan regime is based on common cultural,
offered by the core to
of TvA and BPA successes came othgr ProSrams of Appalachia, the , ;i p'blitical, and economic
spaces that could be reasonably defineC spatially-
in the periphery.areas ,,, To tSSUr€ reasonable face-to-face decision-making opportunities. the
iii*urut" regional development distressed regions
thJFour Co,neis, and other economically aijropolitan regime is organized to create agropolitan districts rarrging ir:
Or"rft,
(Markusen' 1987). ,, slze from about 20,000 to about 100,000; cities are organized similarly
moving periphery or hinterland :,;1; i4(oagropolitaa neighborhoods.
Territorial development is concemed with
of development through a hltering-out
."oi.n* from lower to higher stages
ng a re gion
. . ,.:;.. ,.There is insufficient space here to Present all the facets of the agropolitan
;il;t.'i;;",ion4 o. u.iop,n"nii' chiefl y concerned with movi = :,]i 6"y"1opment concept but some of is principal features can be reviewed- One
principal function' 1.: '-,r : f,iX1ure is the assuming of greater control over natural resources. Renewable
i;;#;t"t;t of d.utlopm"nt by organizing it around a
. . " rciources are nranaged to sustain yields and thereby assure a permanent
A g rop oi i t an D e v e Io Pnr ent &onomic base. In less cieveloped areas with srrplus labor and insufficient
do not consid-er capital, labor-intensive technologies are used to exploit resources. Efforts
Territorial and functional approaches to dwelopment would be undertaken to provide goods and services locally that are other-
controt over their social
tt to which regions themselves may take
" "*t"nt wise imported. This may involve targeting training, incubation, and sub-
regions' Territorial sidization policies to specific industries. Highway systems would be built
."q"i." J"-ination of laggin! regions by leadingcenters' The assump-
^na".ono*i"conditions.Amajorcriticismofbothapproachesisthatthey
to improve accessibility within agropolitan areas and not necessarily
l"i'el.p*"", is dependent on the vitality:l g.t"y'h
between agropolitan areas and growth centers- Only those export-based
tloo i, if a cenier falters its hinterland fails'' Functional development
tt
"t by decisions several thousand miles away (Congress) and' industries that raise local quality of life are encouraged. Export-based
is effect.a industries that exploit local resources but do not measurably improve
*ttit" u ,egio., *ay be improved' it remains dependent upon external quality of life would be discouraged if not prevented. An effort would be
regulatory and economic constraints'
--Tgropitiro, (Friedmann and Weaver' 1979) allows made to create a social consciousness whereby sacrifices by individuals are
development theory-the
kind of development that is. desired not seen necessarily as altruistic but as producing a common benefit that is
regions themselves to determine
has its roots sirarcO Uy all who sacrifice- One example may be investing local savings into
in"""ono-i" and social respects'3 Agropolitan devElopment local opportunities even where investment returns may be less than returns
Odum and Moore
in utopian thought, particuiarly from the writings of earned by investing outside the region. There would also be creation ofa
ihey argue that only by preserving cultural
iiSf ai on cultur-al re!ionalism' to survive industrial- prrcess for social learning designed at once to reinforce local cultural and
iegionalism would a regional society-have a chance
with the industrial social orientations and to PrePare individuals for continuing challenges.
ization with its tendenJy to force cultural conformity There are serious limitations to the agropolitan approach. While certain
social planning that would- for-
interests. They proposeiegional-national
aspects of the approach may be more-or-less feasible, many are not. Take,
mallycreateapatchworkofautonomousorganicterriloriesthatwouldbe for example, the proposition that an agropolitan district may assume
definedbynaturalr"rou,.t',climate'certainhistoricalelements'cultural greatercontrol over its natural resources, especially to manage renewable
traditions, and social structure'
approach resources to sustain yields and thereby assure a Permanent economic base.
until the middle 1970s, this particular regional development
In many parts of the country the natural resource base is owned or in
failedtoinfluenceregionaldevelopmentpolicythrougheithertlreterrito.
various ways controlled by government agencies beholden to interests in
rial development or the functional development stages' By
the middle
some conscious efforts to consider re- other regions. For example, preservation of the Spotted Owl in the north-
1970s, however, there emerged
but westeln forests satisfies the interests of the preservation-minded in every
gional development as fostelng not just leading-lagging interaction
through a region but where the loggers and the owls live.
fostering regional social and lolitical identities reinforced
the deve!
reordering of economic linkages' This is the principal focus of
opment-from-below school of regional development'
50 LOCATION AND SPACE I'HEORIES Theories of Regiunal DevcloPment 5l

'The Washington Counry, Gtorgia. This is a rural county clearlv in the hintcr-
agropolitan approach would result in highway systems designed and
built principally to improve accessibility within agropolitan areas and nor ta;rds of Georgia. It is located about 140 miles from Arlanta. lts 1990
necessarily between them and growth centers. This is an expensive and- alas, population was about 20,000. lts principal city, Sandersville, had a 1990
fruitless proposition. Improving highways within the hinterlands doe s little population of about 7.000. Therc was virtually no change in population
to improve regional development prospects. Only highways that improve from the previous decade. The economic base of the county is kaolin,
accessibility of hinterland areas withiriabout four hours' drive from rnajor which is projected to be exhatrsted within one to two generations.
urban markets are found to be economically.beneficial (Forkenbrocli, 1990). The county wanls to diversify its economic base. One artempt to do so
The agropolitan approach would require reinvestment of local savings was the construction of a speculative indusrrial building. Seeing rhe
into local enterprises even if returns are less than offered elses'here. success of such buildings around exurban Atlanta, Washington County and
Perhaps in situations where capital is not mobile, this nray be accom- Sandersvilie presumed that "if you build it, rhey will come." The building
plished but it is difficult to imagine such behavior on a mass scale in was built b,tt thev did not come. Putting a happy face on an expensive
situations where there are few barriers to capital movement. Moreover. as undertaking. local officials see the vacanr speculative industrial building
Keynesian economists would point out, mass investment. in opportunities as a visible demonstration of their commitment to economic developmenr.
generating fewer returns than other opportunities will ult!mately leave Yet. just as the speculative industrial building is vacanr. proposals ro
society worse off; indeed, the purpose of making capital increasingly reduce "leakage" in the county's restaurant business have been denied..
mobile is ultimately to upgrade rhe welfare of world society.l Washington County is "dry" and so all liquor-by-the-drink rrade occurs in
Finally, the agropolitan approach presumes a more-or-less homoge- adjacent "wet" counties. The county loses about $5 million annually in
neous population. This implies the agropolitan districts would be free to restaurant sales to other counties. It also results in county residents being
decide who can orcannot live in thedistrict- This, of course. violates the injured or killed when they return from those counties, driving along narrow.
very principles of the U.S. Constitution. winding roads. An obvious way to stimulate some development is to change
county tegislation [o allow tiquor-by-thedrink. This proposal, ho*ever, is
Tlte Evidence and Assessntettt routinely defeated at the polls. This is one example of agropolitan expression
at work. The county chooses less economic activity and greater injury to its
Development-from-below policies aimed at developing regions of the
citizens rather than sacrificing cultural and social principles.
United States are guided by both economic and political considerations-
For example, the Economic Development Administration was formed in
Oregon's Willameue Vallay. Oregon's Willamette Valley contains lOVo of
1965 to funnel federal revenues principally for public works projecrs in
the state's land area, produces 40% ofthe state's agricultural products, and
distressed rural regionsi Br,t, by the end of the 1990s, the EDA's programs
houses 807o of the state's population and employment. Thc competition
reached jurisdictions representing about 807o of the nation's population
for land favors urban development because urban externalities reduce the
including such "distressed" areas as some of Atlanta's burgeoning suburbs.
productivity and hence the value of farmland and because public subsidies
The problem of course is that what is considered distressed in some parts
for urban development greatly exceed subsidies for agriculture (Knaap and
ofthe country may be considered advantaged in other parts. Hansen ( 1988)
Nelson, 1992). During the 1960s and 1970s, the Wiilamette Valley was
argues for redirecting federal regional development poiicies to be sensiiive
one of the nation's fastest growing regions. In 1973 alone, more than
to regional heterogeneity.
30,000 acres werc lost to urban development. While the state,s gross
tsut the point of the development-from-below school is that regions
domestic product was increasing, its agricultural productivity was declining.
themselves must have substantial say in determining the character of
Largely in response to public coocern over loosing the open space and
regional development. This is not without limitations. Development-from-
economic benefits of preserving farmland, the Oregon legislature passed
above forces are powerful and they can be viewed as exogenous factors.
the nation's most sweeping land use planning laws. These laws require that
Those factors can undermine development-from-below efforts or they can
all urban development be diversified to areas inside urban growth bound-
be used to fulfill development-from-below efforts. Consider attemprs by
aries and that prime farmland be used only for agricultural activities. The
two agropolitan regions (using the term loosely) to influence development
contribution of urban growth to the state's gross domestic product remains
their way.
 of Regio na I Deve lo P m enl 5l
I,OCATTON AND SPACE THEORIES
52
, +i':,lthe of territorial intcgration of the kind advanced by agropolitan
efltcacy
' because the state has found a
but overall domesttc Pro duct is enhanced , ,i,i,;i'.'iiia similarconcepts? One may suppose so. The rise of the Sun Belt and
agricultural uses (Nelson' '*'*',: 'bf the periphery with lhe core:
for the west has meant greatcr integration of
prime farmland pro<luctive
*"]"tr p."t"tue
'si""" a debilitating recession in the.early 1980s' oregon has :.,f,,., with centers' Does the
is.izj. ,1, it has atso meant the integration of the hinterlands
large Pan because its
;;;;;" one of the nation's irost stable economies inshipping' services (in-
.',,".,: .rua6g5s of functional integl'ation undermine agropolitan development?
;;;;;.y is clearly diversified in ma4ufacturing' residenrs of Not entirely: what may be under way is a Process
of blended functional
More importanr, the valley
Ituaing iourirm), and agriculture. integration with regicnal consciousness building'
their preference ro maintain farms (and .
,nJ state as a whole expressed .significant advances in commuting, teleworking, and telecommunica-
".0 forests) even if it means higher urban densities' tion wilt make the forces of development-from-above more influential in
"."OV approaches may
These examples suggest that development-from-below the development of the periphery and especially of hinterlands. Millions
have an important role in influencing the nature of development-from-
inore househotds will work in edge cities or suburban activity centers-
for"", and in guiding development patterns to preserve particular {thich owe their emergence to deconcentration policies ofthe federal and
"bou"
cultural and social PrinciPles. SiCte governmsnl5-snd commute 20 to 50 miles ro where they live in a
kind of splendid isolation (Herbers, 1986; Nelson' I 992). Teleworking will
enable millions more households to stay at or near home to engage in work
SummarY of the Two Schools
no matter where they live. Improvements in microwave, fiber-optic- and
regional auton-
Development-from-below fundamentally aiirs to create satellite telecommunication technologies will allow millions of "back office"
integration of atl aspects of life within a territory defined by jobs to locare in nontraditional locations ranging from neighborhood-based
omy through
development-
its culture, ,"roui".r, landscape, and climate' In contrast' multifirm-managed employment centers to remote hinterlands.
integration wherein leading regions
from-above aims to achieve functional
are made
' ln this kind of world, hinterlands become reasonable locational alterna-
expand into lagging regions and resources of lagging regions tives for millions of households- As hinterlands become more settled,
accessibl,e to leading regions (Weaver' l98l)' There may be much certain economic activities follow' Smalter towns benefit from greater
more
base ap-
overlap between the schools- Both schools apply economic income brought into the hinterland. For example, Mitchelson and Fisher
p.ouah", to describing regional development and use economic base
(1987) find that long-distance commuting is a form of export economic
to design regionaidevelopment policies' Both schools acknowl- base for those communities that "export" their attractiveness and "import"
"on."pr.
edge stages of g-ro*ttr in regional development' Where
they diverge is in households who earn urban incomes. In the future, there may be competi-
lagging regions and in
thJteveiof integration aesireA between leading and tion among hintelland areas producing and "exporting" amenities to at-
tailor policies and resources to achieve
it" of a'ny given region to tract such households and their urban inccmes-
"ipu"ity
indigenousiy determined social, economid' and political institutions' Blumenfeld (1983), lrssinger (1986), and Nelson and Dueker (1990)
obsewe that virtually all exurban and hinterland areas of the nation have
opportunities for development because of commuting, teleworking, and tele-
Implications for comnrunication. Sometime in the next century, the contiguous 48 states may
Regional Development Professionals be seen more as a mosaic of lowdensity settlements punctuated not by growth
centers from which development erunates but as social, cultural' and gov-
on the ohe hand, there has been a significant redistribution of development ernmental @nters satisfying certain needs of the hinterland population.
sinceWorldWarllawayfromcoreregionsoftheNortheast,MiddleAtlantic, In this world, periphery regions and hinterlands will be playing on a
Southwest'
and Midwest to the periphery regions of the South' Mountains' more level field. They may be able to create a unique sense of phisical'
and west. on the othei hand, there has been a parallel redistribution of social, and economic place that is attractive to people of similar orienta-
development away from growth centers in all regions to the hinterlands- tion. The Hood River Valley in Oregon owes its economic health to a
or, rather, to the exurbs. This has important implications for regional combination of long-distance Portland commuters, a vlbrant fruit industry'
develoPment Professionals - specialized sporting oppornrnities involving the Columbia River and Mt.
Functional integration of lcading and lagging regicns has been achieved Hood, and a large number of affluent households whose work is done
through a combination of policies and economic trends. Does this undermine
 Theories of Regional Dcvelopnrcnt -55

54 LOCATION AND SPACE THEORIES ,ar.ii.l

Blackiey. Paul R. ( l9lt6). "Urban-Rural Variations in thc Structurc ol lr4anufucturing [)roduc-

tion." U rbun Studics 23: 47 I -48-1.
almostentirelyintheirhomes.Similarkindsofpeopleareattractedtothe Blumcnfcld. Hans ( l 9tll). "Me trofnlis Extcndcd." Jout rtol t{ tlu' Arncri< un Plunning Ast,t'
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,urui of california, the Georgia and North carolina mountains- Boume. L. S. ( 1980)- -Altcmative Perspectives on Urban Decline and Polxlation Dronccnlra-
"oun,i",
mountains, tile Kentucky Btuegrass, the FIint Hills of Kansas, tion." Urb<u Geography l: 39-52.
colorado's
Technolcgical Clavcl. Pierre (1983). Opposition Planning. PhiladclPhia: Templc University Press.
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Cohen. Ychoshua S. and Erian J. L. Bcrry ( I 975). S2uti(l CotttP.rncttts rtl Mutufacturing Ch<urgc
uduun"",combinedwiththeabilityofmillionsofpeopletolivenearly (Rc:wch Paper 172)- Chicago: Depanment of Gcography, Univesity of Chicago-
anywhere to earn a decent income perhaps will make it
easier for an
Falk. Lawrence H-. Darl A. Hcllrnan. and Grcgory ll. \\'assall ( 198())- Sr(.re Finun<'iul
hinter-
agropolitan approach to regional development to emerge' Indeed' Incentives to Induslnt- Lexington. MA: D. C. Heath.
along agropolitan approaches could find Fernstrom, John R. ( 1979). Bringing in tlte Sheuves: Elfecrite C<nnnunit; lttdustriol Devcl-
lands that become organized
themselves more attractive places for people in search of
iife-styles that optneut P rog,ntns. Coruallis: Oregon Statc Univcrsilt' Extcosion Scrvice-
Florida, Richard. Manin Kenncy, and Andrew Mtir ( 19881. -The Transplant Phenomcnon."
offersocialandculturalstabilityinapleasingenvironment.Thechallenge Economic Developtnent Cotnme ntan' l2: 3-9.
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idenlty than in chasing after every economic development opportunity Iro Ciiy. lA: Mid*'esr Transportation Center-
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Fricdmann, John R. (196?). "Rcgional Planning and Nation Building: An Agcnda for lntcr-
national Research-" Ec<tnonic Dctelopnrutl utrd Culturol Clttttrge 16: l -
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lnsriture of Plautrer,r 3 I (4): 3l?-32{1.
located there is a volvo plant. 8y the mid-l99os. BMW will be operating
a plant Friedmann, John R. and Clyde Weaver (1979\. Territort and Function. London: Fiward
l. Also
Carolina in a localion halfway between Atlanta and Charlotte' Arnold.
in exurban South
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2- The evidence of center-to-hi nterland population and manu
Center for Urban Policy Research.
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of"antarchy." the Quebec Hall. Peter ( l99O\-The Carrier Wave. New Brunswick, NJ: Center for Urban Policy Research-
3- The reader may equate this term with the economists'concePl
the control of a sovereign Hanscn, Nils- 1988. -Economic Development md Regional Heterogenerity: A Reconsidemtion of
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Regimal Poliry for the United States-' Economic Developrncnt Quncrh 2(2): lO?- l I 8.
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Heckscher, E- F. (1919)- -Thq,Effe€t of Foreign Trade on the Distribution of lncomc."
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por,folio h-us lost rubstunttal value in Part b€cause the fund's very investments helped lead Holland, S- (1976J. Capilal Versus the Regions. London: Macmillan.
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arero of the Knap, Gerit J. and Arthur C- Nelson (1992). The Regulated hndscape. Cambridge, MA:
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Lincoln Imtilutc of knd Policy.
l-essinger, Jack ( 1986). Regiorc of Oppotrrtritv. New York: fimes Books.
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