regions rich in capital, export capital consuming products, while regions rich in labour force export time-consuming products,
potential trade exchange between such regions is more advantageous for the capital consuming ones,
local/regional governments in poorer regions should support not only export and free international trade, but also their infrastructural and institutional investments
‒ cumulative causation theory – “spread” effects and “backwash” effects,
Topic 4 -> Presentation -> Slide 20_21
“spread” effects as a result of:
Diffusion of innovations growing export into a “lagging” region
Growing export markets for lagging region products
“backwash” effects
The flow of capital and labour from the lagging region into the developed region,
Free trade only serves s causation to reinforce the process of cumulative further catalyzing growth in developed regions at the expense of lagging regions
‒ core and peripheries model of development – why the growth is spatially neither