Table Of Content6063 GEOGRAPHY WORLD ECON_PT_246x189 mm 22/01/2014 15:09 Page i
THE GEOGRAPHY
OF THE WORLD
ECONOMY
The Geography of the World Economyprovides an in-depth and stimulating introduction to
the globalization of the world economy. The book offers a consideration of local, regional,
national and global economic development over the long historical term. The theory and practice
of economic and political geography provide a basis for understanding the interactions within
and among the developed and developing countries of the world. Illustrated in colour
throughout, this new edition has been completely reworked and updated to take account of
recent significant changes in the world economy.
A new companion website also accompanies the book, with additional resources for each
chapter including multiple choice and short essay questions and links to relevant websites.
Figures and tables are also available for download located at www.routledge.com/cw/knox
The text is signposted throughout with an glossary of key terms, and is richly illustrated
with full-colour maps, diagrams and illustrations. It is ideal for upper level university
undergraduates and for post-graduates in a variety of specializations including geography,
economics, political science, international relations and global studies.
Paul Knox, University Distinguished Professor and Senior Fellow for International Advance-
ment, Virginia Polytechnic Institute and State University, USA.
John Agnew, Distinguished Professor, University of California, Los Angeles, USA.
Linda McCarthy, Associate Professor, University of Wisconsin-Milwaukee, USA.
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THE GEOGRAPHY
OF THE WORLD
ECONOMY
Sixth Edition
Paul Knox, John Agnew and Linda McCarthy
Routledge
Taylor & Francis Croup
LONDON AND NEW YORK
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First edition published in 1989 by Edward Arnold
Fifth edition published in 2008 by Hodder Education
Sixth edition published in 2014
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2014 Paul Knox, John Agnew and Linda McCarthy
The right of Paul Knox, John Agnew and Linda McCarthy to be identified
as authors of this work has been asserted by them in accordance with
sections 77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilised in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in
writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and
explanation without intent to infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Knox, Paul L.
The geography of the world economy/Paul Knox, John Agnew and
Linda McCarthy.
pages cm
Includes bibliographical references and index.
1. Economic geography. 2. Economic history. I. Agnew, John A.
II. McCarthy, Linda (Linda Mary) III. Title.
HF1025.K573 2014
330.9–dc23 2013027243
ISBN: 978-0-415-83128-4 (hbk)
ISBN: 978-1-44-418470-9 (pbk)
ISBN: 978-0-203-77518-9 (ebk)
Typeset in Gill Sans and Sabon
by Florence Production Ltd, Stoodleigh, Devon, UK
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Contents
List of figures viii
List of tables xi
List of boxes xiii
Acknowledgements xiv
PART 1
ECONOMIC PATTERNS AND THE SEARCH FOR EXPLANATION 1
1 The changing world economy 3
1.1 Studying the world economy 5
1.2 Economic organization and spatial change 6
1.3 Spatial divisions of labor 12
Key sources and suggested reading 19
2 Global patterns and trends 20
2.1 What “economic development” means 23
2.2 International patterns of resources and population 29
2.3 International patterns of industry and finance 45
Summary 59
Key sources and suggested reading 60
3 Geographical dynamics of the world economy 61
3.1 History of the world economy 62
3.2 States and the world economy 66
3.3 “Market access” and the regional motors of the world
economy 79
Summary 91
Key sources and suggested reading 91
PART 2
RISE OF THE CORE ECONOMIES 93
4 Preindustrial foundations 95
4.1 Beginnings 95
4.2 Emerging imperatives of economic organization 100
4.3 Emergence of the European world-system 100
Summary 113
Key sources and suggested reading 115
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vi CONTENTS
5 Evolution of the core regions 116
5.1 The Industrial Revolution and spatial change 116
5.2 Machinofacture and the spread of industrialization in Europe 117
5.3 Fordism and North American industrialization 125
5.4 Japanese industrialization: Two economic miracles 130
5.5 Emergence of “organized” capitalism 137
5.6 Principles of economic geography: Summarizing lessons from the
industrial era 142
Summary 144
Key sources and suggested reading 144
6 Globalization of economic activities 145
6.1 Transition to advanced capitalism 145
6.2 Patterns and processes of globalization 159
Summary 174
Key sources and suggested reading 174
PART 3
SPATIAL TRANSFORMATION OF CORE AND PERIPHERY 177
7 Spatial reorganization of the core economies 179
7.1 The context for urban and regional change 180
7.2 Spatial reorganization of the core economies 182
7.3 Old industrial spaces 194
7.4 New industrial spaces 196
7.5 Regional inequality in core economies 205
Summary 211
Key sources and suggested reading 212
8 Dynamics of interdependence: Transformation of the periphery 213
8.1 Colonial economies and the transformation of global space 213
8.2 Economic mechanisms of enmeshment and maintenance
in the colonial world economy 218
8.3 Influence of colonial administration on interdependence 226
8.4 Mechanisms of cultural integration 228
8.5 Changing global context of interdependence 230
8.6 Alternative models of development? 242
Summary 243
Key sources and suggested reading 244
9 Agriculture: The primary concern? 245
9.1 Agriculture in the periphery 246
9.2 Land, labor, and capital 251
9.3 Rural land reform 260
9.4 Capitalization of agriculture 262
9.5 Science and technology in agriculture 270
Summary 272
Key sources and suggested reading 273
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CONTENTS vii
10 Industrialization: The path to progress? 274
10.1 National and global stimuli to industrialization 275
10.2 Limits to industrialization in the periphery 280
10.3 Geography of industrialization in the periphery 285
10.4 Rise and fall of the Soviet model of industrialization 299
10.5 China’s rise in the world economy 304
Summary 310
Key sources and suggested reading 312
11 Services: Going global? 313
11.1 Defining and theorizing services 315
11.2 National and global stimuli to the growth of services 318
11.3 Services outsourcing: Benefits and drawbacks for all? 319
11.4 Limits to service export growth in the semi-periphery and periphery? 322
11.5 Geography of services 325
11.6 Variety in the internationalization of services 332
Summary 347
Key sources and suggested reading 349
PART 4
ADJUSTING TO THE WORLD ECONOMY 351
12 International and supranational institutionalized integration 353
12.1 Economic change and geopolitics 353
12.2 International and supranational institutionalized integration 356
12.3 Spatial outcomes of economic integration 362
Summary 377
Key sources and suggested reading 378
13 Reassertion of the local in the age of the global: Regions and
localities within the world economy 379
13.1 Regionalism and regional policy 380
13.2 Nationalist separatism 386
13.3 Grassroots reactions 391
Summary 396
Key sources and suggested reading 397
14 Conclusion 398
Key sources and suggested reading 401
Glossary 403
Bibliography 423
Index 453
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Figures
1.1 The inter-relationships surrounding economic organization and
spatial change 6
1.2 Major features of economic change in the world’s developed economies 8
1.3 Employment outsourcing and insourcing, United States 14
1.4 Basic elements of commodity chains 15
2.1 The world-system: core, semi-periphery and periphery 22
2.2 GDP per capita (PPP, constant 2005 international dollars) 22
2.3 Gap in growth of GDP per capita (PPP, constant 2005 international dollars) 23
2.4 Happy planet index, 2012 27
2.5 Change in human development index (HDI) in regions as a percentage
of potential 27
2.6 Human development index (HDI) 28
2.7 Human development index (HDI), 2011 28
2.8 North American shale plays 31
2.9 Estimated shale gas resources in 14 regions 31
2.10 Marine “dead zones” 31
2.11 World energy consumption by fuel, historical and projected 35
2.12 The world’s cultivable land 37
2.13 Stress on freshwater supplies, 1995 and 2025 38
2.14 Ecological footprint 39
2.15 Share of agricultural products in world merchandise exports, 1950–2009 40
2.16 The demographic transition 41
2.17 Demographic transition map of the world 42
2.18 Remittance flows 43
2.19 Remittance flows, top countries, 2010 44
2.20 Share of a country’s nationals with a university degree living in an(other)
OECD country 45
2.21 Growth in volume of world merchandise trade and GDP, 2005–13
(annual % change) 50
2.22 Trade, imports and exports 51
2.23 Intra- vs. inter-regional connectedness of major exporters 52
2.24 Index of commodity concentration of exports, 2011 53
2.25 Government debt of euro-zone countries, 2011 (Maastricht limit: 60%) 55
2.26 Iceland and the global financial crisis 57
3.1 Shifting fortunes in the world economy (after Maddison) 62
3.2 Corruption perceptions index, 2011 63
3.3 The increasing pace of the world economy 69
3.4 F.D.I. inflows, developed, developing, and transitioning* countries
(*includes South-East Europe and Commonwealth of Independent States) 69
3.5 United States military expenditure 76
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FIGURES ix
3.6 The product life cycle model and possible effects on U.S. production
and trade (after Vernon, 1966) 83
3.7 Cheaper transport and communications costs on the global highway 88
4.1 The urbanization of the classical world 99
4.2 Plan of a medieval manor 103
4.3 The rise of merchant capitalism and the changing space-economy 105
4.4 Towns and cities of the Hanseatic League 105
4.5 The emergence of a European-based world-system 108
4.6 Transoceanic rim settlements of the mercantile era 110
4.7 Colonialism and urban settlement patterns 114
5.1 Output growth in Western Europe, 500–1990 118
5.2 Europe in 1875 121
5.3 Core and periphery in Europe 124
5.4 The American Manufacturing Belt in 1919 (after Conzen, 1981: 340,
Figure 9.13) 128
5.5 Index of manufacturing production for selected countries 134
6.1 Forces in the deindustrialization of the United Kingdom: dramatic loss of
competitiveness (1978–83) and consequent import penetration 148
6.2 Internet users 149
6.3 Boeing’s 787 Dreamliner global production system 165
6.4 The changing global geography of clothing manufacturing 168
7.1 The foreign automobile industry in the United States 184
7.2 Research and development (R&D) in the USA by U.S. affiliates of
foreign companies and R&D performed abroad by foreign affiliates
of U.S. TNCs 185
7.3 Geography of an Indian offshore services provider 187
7.4 The system of world cities 191
7.5 Employment by sector in the United Kingdom 195
7.6 Employment shares, by economic sector, USA 196
7.7 French competitiveness clusters 200
7.8 Regional inequality across the European Union 206
7.9 An index of deprivation in England in 2010, by district level
(average score) 207
7.10 The relationship between interregional inequality and levels of economic
development, as posited by Williamson (1965) 208
7.11 Regional trends in per capita incomes in the United States 209
7.12 Myrdal’s model of regional cumulative causation 210
8.1 Geographical extent of European political control, 1500–1950 214
8.2 Long waves and colonization: the two long waves of colonial expansion
and contraction 216
8.3 The Atlantic system, 1650–1850 219
8.4 Geographical distribution of British foreign investment, 1860–1959 220
8.5 Colonization of Africa: (A) 1850; (B) 1914 220
8.6 World steamship routes, by volume of trade, 1913 221
8.7 Telegraph system in Asia and Africa, 1897 222
8.8 Development of roads and railways in the River Plate region of South
America, 1885–1978 223
8.9 New states of the world since the Second World War 231
