Offered an explanation for why
regions with lower levels of
development may find it difficult
to break out of an unequal
relationship with more powerful
neighbours.
Economically powerful areas have
greater access to a larger market and
coompanies to benefit the economy on
a macro (large scale) level.
Introduction of a new industry
Creates more jobs
Also increases purchasing power
Improved pool of trained labour
Increases the demand for public
services e.g. schools, healthcare and
shops etc.
Influx of population
e.g. immigration
Greater wealth of local people
Increased income from
taxes and more people
Increases spending power
available.
New construction
activity
Growth of teritary
sector
Area becomes a
growth pole
Results in new
invention and innovation
Attractions of linked
industry
Backward linkagges to firms supplying raw
materials
Forward linkages to firms further processing the product.