UNIVERSITY OF NAIROBI COLLEGE OF HUMANITIES AND SOCIAL SCIENCES FACULTY OF ARTS & SCHOOL OF PHYSICAL SCIENCES

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1 UNIVERSITY OF NAIROBI COLLEGE OF HUMANITIES AND SOCIAL SCIENCES FACULTY OF ARTS & SCHOOL OF PHYSICAL SCIENCES Department of Geography and Environmental Studies TEACHING MODULE CGP/SGP 321: ECONOMIC GEOGRAPHY WRITTEN BY Prof. Evaristus Irandu Department of Geography and Environmental Studies EDITED AND REVIEWED BY... Department of Geography and Environmental Studies 1

2 Published by the Centre for Open and Distance Learning (CODL) University of Nairobi-Kenya

3 Contents INTRODUCTION TO THE UNIT... Error! Bookmark not defined. LECTURE 1: NATURE AND SCOPE OF ECONOMIC GEOGRAPHY INTRODUCTION OBJECTIVES THE NATURE OF ECONOMIC GEOGRAPHY What is Human Geography? Definition of Economic Geography SCOPE OF ECONOMIC GEOGRAPHY The Temporal Aspect/Scope The Spatial Aspect/Scope The Vertical scope The Continental Scope The Global Scope The Applicability Scope The Theoretical Scope HISTORICAL AND PHILOSOPHICAL DEVELOPMENT OF ECONOMIC GEOGRAPHY SUMMARY REFERENCES LECTURE 2: THEORIES, MODELS AND APPROACHES IN ECONOMIC GEOGRAPHY INTRODUCTION OBJECTIVES KEY CONCEPTS IN ECONOMIC GEOGRAPHY THEORIES IN ECONOMIC GEOGRAPHY Hypothesis Models (Model Building) APPROACHES IN ECONOMIC GEOGRAPHY Deductive Model/Approach Inductive Approach SUMMARY REFERENCES LECTURE 3: CHANGING PERSPECTIVES IN ECONOMIC GEOGRAPHY INTRODUCTION OBJECTIVES MAJOR THEORETICAL PERSPECTIVES IN ECONOMIC GEOGRAPHY LOCATON THEORY AND NEOCLASSICAL APPROACH BEHAVIOURAL APPROACH STRUCTURALIST APPROACH/MARXIST POLITICAL ECONOMY POST-STRUCTURALIST APPROACH/NEW ECONOMIC GEOGRAPHY SUMMARY... Error! Bookmark not defined. 3.8 REFERENCES LECTURE 4: MEASURING LEVELS OF DEVELOPMENT INTRODUCTION OBJECTIVES DISTINGUISHING BETWEEN GROWTH AND DEVELOPMENT

4 4.3 CONCEPT OF SUSTAINABLE DEVELOPMENT ECONOMIC INDICATORS OF DEVELOPMENT SOCIAL INDICATORS OF DEVELOPMENT HUMAN DEVELOPMENT INDICATORS SUMMARY REFERENCES LECTURE 5: THEORIES OF GROWTH AND DEVELOPMENT INTRODUCTION OBJECTIVES THEORIES OF UNDERDEVELOPMENT Underdevelopment as a State Underdevelopment as a Process SUMMARY REFERENCES LECTURE 6: GLOBALISATION AND ECONOMIC DEVELOPMENT INTRODUCTION OBJECTIVES THE CONCEPT OF GLOBALISATION EVOLUTION OF GLOBALISING WORLD BENEFITS OF GLOBALISATION NEGATIVE ASPECTS OF GLOBALISATION : GLOBALISATION AND TRANSNATIONAL CORPORATIONS : INTRODUCTION OBJECTIVES EMERGENCE OF TRANSNATIONAL CORPORATIONS (TNCs) FOREIGN DIRECT INVESTMENTS (FDI) TNCs AND GLOBALISATION TNCs AND HOME ECONOMIES TNCs AND HOST ECONOMIES SUMMARY REFERENCES LECTURE 7: AGRICULTURE AND FOOD PRODUCTION INTRODUCTION OBJECTIVES AGRICULTURE FROM THE VIEW POINT OF GEOGRAPHY OF DEVELOPMENT DEFINITION OF AGRICULTURE APPROACHES TO THE STUDY OF AGRICULTURAL GEOGRAPHY ROLE OF AGRICULTURE IN DEVELOPMENT EVOLUTION OF AGRICULTURAL SYSTEMS WORLD AGRICULTURAL SYSTEMS PROBLEMS OF DELIMITATION AND CLASSIFICATION SUBSISTENCE AGRICULTURE PLANTATIONS AND AGRIBUSINESS VON THUNEN S MODEL OF AGRICULTURAL LOCATION SUMMARY REFERENCES LECTURE 8: THE WORLD FOOD PROBLEM INTRODUCTION OBJECTIVES

5 8.2 THE GROWTH OF FOOD PRODUCTION TRENDS IN FOOD SUPPLY FAMINE IMPROVING FOOD SUPPLIES EXPANDING CULTIVATED LAND IMPROVING FOOD DISTRIBUTION AGRICULTURAL POLICIES AND LAND REFORMS IMPROVEMENT APPROACH TRANSFORMATIONAL APPROACH LAND REFORMS AGRICULTURAL TECHNOLOGY AND THE GREEN REVOLUTION THE GREEN REVOLUTION SUMMARY REFERENCES... Error! Bookmark not defined. LECTURE 9: INTRODUCTION TO GEOGRAPHY OF INDUSTRIAL PRODUCTION INTRODUCTION OBJECTIVES DEFINITION OF INDUSTRIAL GEOGRAPHY NATURE AND SCOPE OF INDUSTRIAL GEOGRAPHY THE CONCEPT OF INDUSTRY CLASSIFICATION OF INDUSTRIES THE INTERNATIONAL STANDARD INDUSTRIAL CLASSIFICATION (ISIC) INDUSTRIAL LOCATION FACTORS PHYSICAL FACTORS ECONOMIC FACTORS Scale Economies HUMAN FACTORS INDUSTRIAL LOCATION THEORY: INDUSTRIAL LOCATION SCHOOL OF THOUGHT THE LEAST COST SCHOOL CRITICISM OF WEBER S MODEL THE MARKET AREA SCHOOL THE MARGINAL LOCATION SCHOOL THE BEHAVIOURAL SCHOOL SUMMARY REFERENCES LECTURE 10: ROLE OF INDUSTRIALIZATION IN DEVELOPMENT INTRODUCTION OBJECTIVES REASONS FOR INDUSTRIALIZATION INDUSTRIAL DEVELOPMENT STRATEGIES IMPORT SUBSTITUTION INDUSTRIALIZATION EXPORT-ORIENTED INDUSTRIALIZATION (EOI) SUMMARY REFERENCES LECTURE 11: GEOGRAPHY OF MONEY INTRODUCTION OBJECTIVES

6 11.2 DEFINITION OF GEOGRAPHY OF MONEY ORIGINS OF MONEY PLACE AND THE URBAN SPATIAL DYNAMICS OF FINANCE MONEY AND ECONOMIC TRANSFORMATION OF SPACE SAVINGS MONETARY AND FISCAL POLICIES SUMMARY REFERENCES LECTURE 12: TERTIARY SECTOR AND ECONOMIC GEOGRAPHY OF GLOBAL TRADE INTRODUCTION OBJECTIVES FORMAL TERTIARY SECTOR Definition of Tertiary Sector Contribution of Tertiary sector to Development INFORMAL TERTIARY SECTOR Definition of Informal Sector Development of Informal sector Linkages between the Formal and Informal sectors Obstacles faced by the Informal sector ECONOMIC GEOGRAPHY OF GLOBAL TRADE BENEFITS OF TRADE ETHICAL TRADE INTERNATIONAL TRADE THEORY SUMMARY REFERENCES LECTURE 13: GENDER AND DEVELOPMENT INTRODUCTION OBJECTIVES DEFINITION OF CONCEPTS AND TERMS GENDER AND FEMINIST GEOGRAPHY FEMINIST THEORY SUMMARY REFERENCES LECTURE 14: URBANISATION AND DEVELOPMENT INTRODUCTION OBJECTIVES URBANISATION AND URBANISM: PROBLEM OF DEFINITIONS URBANISATION PROCESS Global Urbanization Urbanization in Africa URBANISATION AND ECONOMIC DEVEOPMENT URBAN PROBLEMS URBANISATION, URBAN POVERTY AND URBAN FOOD INSECURITY CONCEPT OF SUSTAINABLE URBAN DEVELOPMENT ROLE OF ENVIRONMENT AND CLIMATE CHANGE IN SUSTAINABLE URBAN DEVELOPMENT DEFICIENCIES IN BASIC URBAN SERVICES SUSTAINABLE MANAGEMENT OF URBAN BASIC SERVICES

7 14.10 INEFFICIENCY OF LAND POLICY IN DEVELOPING COUNTRIES SUSTAINABLE CITY FORM SUMMARY REFERENCES LECTURE 15: REGIONAL INEQUALITIES, ECONOMIC DEVELOPMENT PLANNING AND POLICIES INTRODUCTION OBJECTIVES REGIONAL INEQUALITY LEVELS AND TRENDS IN SPATIAL DISPARITIES DEVELOPMENT PLANNING REGIONAL PLANNING THE GROWTH CENTRE AND CENTRE-PERIPHERY MODEL SUMMARY REFERENCES... Error! Bookmark not defined.7 TABLES Table 4.1: Selected Economic Indicators, Table 4.2: Social Indicators for Basic Needs.. 49 Table 4.3: Social Indicators for Selected countries, Table 4.4: Correlation Coefficients for Various Indicators 52 Table 5.1: Take-off Period for Countries Shown Table 5.2: Drive to Maturity Period for Countries Shown Table 6.1: Three Phases of Globalization Process...72 Table 6.2: The top 20 TNCs in the World, Table 7.1: Economic rent Table 8.1: Countries requiring emergency food aid in Sub-Saharan Africa.114 Table 9.1: Industrial Classification of Economic Activities..126 Table 12.1: Different ways of defining tertiary sector..166 Table 12.2: GDP Composition by sector in selected Countries in 2010 (%) 168 Table 12.3: Labour force by occupations in the Developing and Developed countries 169 Table 12.4: Comparative Advantage of Countries A and B Table 14.1: Urban population size and distribution by major geographic areas, Table 14.2: Selected fastest growing cities and urban areas in Africa..197 Table 15.1 Countries that have adopted Growth Centre Model 230 7

8 FIGURES Figure 2.1: Backward and forward linkages 25 Figure 5.1: Bristow s model of economic growth 57 Figure5.2: Four interlocking vicious...64 Figure 7.1: The Centres of Origin of Agriculture 95 Figure 7.2a: Von Thunen s concept of economic rent..104 Figure 7.2b: Economic rent for selected agricultural produce..104 Figure 7.3: Land use in Von Thunen s Isolated State Figure 8.1: The inputs and outputs of the Green Revolution.122 Figure 9.1: Weber s locational theory Figure 9.2: The effects of labour and transport costs on location.141 Figure 9.3: The effect of agglomeration on location.142 Figure 9.4: The theoretical shape of the market area.144 Figure 9.6: Hypothetical industrial location decisions linked to the behavioral matrix 144 Fig. 12.1: Relationship between employment and per capita income 168 Fig. 14.1: The urban transition by major regions (in million) 201 Fig. 15.1: Lorenz Curve 219 8

9 INTRODUCTION TO THE UNIT Dear learner, this material was prepared with you in mind and, therefore, you will find it easy to read, comprehend and enjoy. In the present course unit, you are introduced to the basic concepts of economic geography such as location, agglomeration, development, underdevelopment and economic rent among others. The different ways of measuring levels of development of different countries are examined. Classical and neo-classical theories of growth and development are also critically discussed. The contribution of agriculture, industrialization, urbanization and gender to development is also evaluated. The geography of money as well as regional development and planning are also discussed. The material contains useful illustrations for your easy and quick comprehension, suggested practical activities, which you are expected to carry out (in text questions), and assignments for you to attempt at the end of each lecture. You are expected to write out your answers and mail them for marking according to the instructions that will be provided to you. Welcome to this exciting and interesting Economic Geography course. Unit Objectives At the end of this study unit, you should be able to: Explain the concepts of location, development, underdevelopment and economic rent. Discuss the various ways of measuring levels of development of the countries of the world. Explain causes of underdevelopment in Less Developed countries. Critically evaluate the role of agriculture in the development process. This unit, referred to as Economic Geography, is taught at the undergraduate level to the Bachelor of Education Science students. It is designed to train students to appreciate the complex nature of the development process. 9

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