• Geography has evolved into a diverse and adaptable subject with a wide range of study topics.
• Economic Geography aims to evaluate man’s economic achievement in terms of production and consumption in relation to his surroundings.
• Evaluating the functions of Economic Geography helps determine its relative relevance.
• Traditional views of geography, such as place names and the influence of natural environments on human activity, are now considered obsolete.
• Modern geography studies geographic differences on the earth’s surface and is a spatial or areal science focused on interactions among geographic variables.
• Economic Geography is the most developed major branch of geography.
• Although it is a branch of Human Geography, Economic Geography has its own status in geographical studies.
• It deals with areal variations in man’s economic activity on the earth’s surface.
• Economic Geography has undergone significant changes in the last fifty years, leading to specialized areas such as agricultural, industrial, and transportation geography.
• This unit covers the meaning, definition, nature, and scope of Economic Geography.
• The unit begins with a basic understanding of the field of Economic Geography, including its definitions, nature, and scope.

MEANING OF ECONOMIC GEOGRAPHY

• Human Geography has a subfield called Economic Geography.
• Economic Geography studies how human economic activities (production, consumption, and exchange) vary across space.
• It focuses on resource endowments, international trade and commerce, population growth, settlements, development, interaction, interdependencies, and regional supply and demand.
• Economic Geography examines man’s economic actions in various conditions.
• Geographers have differing viewpoints on the definition of geography.
  • Hartshorn and Alexander: “Economic Geography is the study of the spatial variation on the earth’s surface of activities related to producing, exchanging, and consuming goods and services. The goal is to develop generalizations and theories to account for these spatial variations.”
  • J. MacFarlane: Economic Geography studies the “influence exerted on the economic activity of man by his physical environment, including the form and structure of the land, climatic conditions, and spatial relations among regions.”
  • Dudley Stamp: Economic Geography “involves consideration of the geographical and other factors influencing man’s productivity, focusing on production and trade.”
  • E. W. Zimmermann: Economic Geography deals with the economic life of man in relation to the environment.
  • Gotz (1882): Defined Economic Geography as “a scientific investigation of the nature of world areas in their direct influence on goods.”

• Hartshorn and Alexander define Economic Geography as “the study of the spatial variation on the earth’s surface of activities related to producing, exchanging, and consuming goods and services.”
• The goal is to develop generalizations and theories to account for these spatial variations whenever possible.
• The concept of “spatial variation” or “areal variation” has significantly changed the nature of economic geography.
• Alexander and Gibson (1979) and Hartshorn and Alexander (1988) state in their book “Economic Geography” that:
  • “Economic geography is the study of areal variation on the earth’s surface in man’s activities connected to generating, exchanging, and consuming wealth.”

• German scholar Gotz defined economic geography in 1882 as “a scientific analysis of the character of world territories in their direct influence on goods.”
• Gotz coined the term “economic geography,” but his influence was limited to Germany.
• Economic geography’s development as an academic topic is owed to the British public’s interest in business.
• George Chisholm, the pioneer of contemporary economic geography, aimed to instill intellectual curiosity in the study of geographic facts.
• Chisholm believed the fundamental purpose of economic geography is to “create some plausible forecast of the future course of commercial development insofar as that is affected by geographical conditions.”
• Chisholm focused on commercial development, physical characteristics, and climate in relation to products.
• This emphasis led others to view economic geography in terms of productive vocations.
• Jones and Darkenwald (1950) wrote that “Economic geography deals with productive activities and strives to explain why certain places are outstanding in the production and exportation of particular items while others are significant.”
• Ellsworth Huntington (1940) stated economic geography encompasses all forms of materials, resources, activities, conventions, capabilities, and forms of aptitude involved in earning a livelihood.
• Bengston and Van-Royen (1957) in “Fundamentals of Economic Geography” stated: Economic geography studies how various places differ in terms of basic resources and the impact of physical environment variances on resource use.
• It investigates disparities in economic development between regions or countries, and the resulting transportation, trade routes, and trade.
• Definitions of economic geography:
  • J. McFarlane: “Economic geography is the study of the influence of man’s physical environment on his economic activities.”
  • R.E. Murphy: “Economic geography has to do with similarities and differences from place to place in the ways people make a living.”
  • R.N. Brown: “Economic geography deals with the influence of the environment on the activities of man.”
  • E.B. Shaw: “Economic geography is concerned with the problem of making a living, with world industries, with basic resources and industrial commodities.”
  • N.J.G. Pounds: “Economic geography is concerned with the distribution of man’s productive activities over the surface of the earth.”
• Economic geography focuses on man’s productive activities and their interactions with the environment.
• Primary activities include agriculture, forestry, and fishing.
• Secondary activities involve manufacturing, processing, or fabrication of commodities in factories and workshops.
• Tertiary activities include transportation services, insurance, broker, and dealer services.
• Wheeler, Muller, Thrall, and Fik (1998) describe economic geography using two continuums: a human-physical continuum and a topical-regional continuum.
• Economic geography falls toward the human end of the scale, focusing on human production, distribution, and consumption, while considering factors like climate, geography, soil, and hydrology.
• The second continuum provides a method to analyze geographic variation in human and physical factors and the distribution of various economic activities across different regions.

• Economic geography concerns the geographic distribution of economic activity and the variables and processes influencing them.
• The focus has shifted from descriptive data collection about global production to interpretation.
• Shift from environmental determinism to economic determinism due to Neo-classical Economics influence.
• Neo-classical Economics led to key disciplines such as Industrial Location Theory and Regional Science.
• Behavioural Approach emphasizes the decision-maker in economic geography.
• Recent focus in economic geography includes:
  • Nature and causes of development and underdevelopment, highlighting interrelationships between less and more developed regions with a focus on the mode of production.
  • Link between economic systems and geography, especially capitalism’s spatial impacts and its role in world economy development.
  • Impact of technological advancements and the development of new industrial areas.
  • Use of discursive, qualitative, and realist explanations recognizing that each economic agglomeration and development is locally embedded in its socio-institutional environment.
  • Economic dimensions of class, race, and gender, often critiquing how economic institutions rely on discrimination.
  • Role of ‘non-economic’ forces in the economic process, including cultures, institutions, and social behaviors.
  • New explanations for the location of economic activity based on economic man’s assumptions and optimization.
  • Introduction of the decision-maker and the satisfier in the behavioral approach changing ideas.
  • Concept of sustainable development in resource use.
• These fields have contributed to the development of an economic geography philosophy and regional development and planning.

• Economic geography is a dynamic and constantly developing subject.
• It covers the discovery of new countries, resources, and industrial centers, making it a progressive science.
• Benefits of studying economic geography:
  • Provides knowledge of natural resources essential for economic growth.
  • Helps understand the use of natural resources like wild materials, agricultural products, and minerals.
  • Indicates where specific industries can be established based on resource availability.
  • Guides the acquisition and transportation of raw materials, food items, and instruments.
  • Explains how different human communities meet their physical needs and use natural means to improve living standards.
  • Helps analyze the economic progress of various countries and reasons for their development or backwardness.
  • Supports the creation of systematic national plans for optimal use of natural wealth and industry growth.
  • Essential for students of commerce and economics to understand global economic resources.
  • Highlights the importance of mutual cooperation for economic development.
  • Emphasizes the need for international trade and global unity.
  • Prof. Davenham states that understanding inhabitants, their locations, and their activities is crucial for modern civilization.
  • Studying economic-commercial geography helps understand global interdependencies and fosters global cooperation.

• A substance or element is considered a resource if it can meet human needs or overcome difficulties.
• A resource must have the ability to provide human needs, achievement, or benefit.
• The relationship between human capacity and resources is crucial.
• A substance is a resource only if humans have the intellectual, cultural, and material ability to utilize it.
• The nature of a resource is determined by human intellectual and cultural capacity.
• Human physical and intellectual capacity, interest, knowledge organization, economic progress, and political stability are also resources.
• Resources are the basis of wealth and security, influencing human fate in war and peace.
• Humans depend on their own or others’ labor to make food, clothing, and shelter.
• Resources are found on or within the earth’s surface and are processed for human consumption.
• The term “resource” is derived from “Re” (again) and “Source” (means or device).
• Resources available in nature that can be relied upon for a long period and can replenish are called resources.
• Examples of resources include air, sunlight, and vegetation.
• A resource is a natural and human resource used to fulfill needs.
• Human progress, development, and survival depend on resources.
• Natural resources require appropriate technologies for their use.
• Land, water, air, sunlight, forests, and wildlife existed before human life and were developed to meet human needs.
• Elements present on earth that can be accepted by humans are called resources.
• E.W. Zimmerman defines a resource as the achievement of an objective that serves personal and social goals.
• Properties of a resource:
  • Human utility.
  • Transformable into a more valuable and useful item.
  • Ability to fulfill certain objectives.
  • Availability of human resources capable of exploiting these items.
  • Necessary capital for sustainable development should be available.

• Definitions of Economic Geography:

  • Bangston and Von Royen: Investigates diversity in basic resources globally, evaluates the impact of physical environment on resource utilization, studies regional economic development, transportation, and trade.
  • G. Chisholm: Encompasses geographical conditions affecting production, transport, and exchange of commodities, helps estimate future commercial development.
  • Prof. Shaw: Concerned with problems of making a living, world industries, basic resources, and industrial commodities.
  • Darkenwald: Focuses on productive occupations, explains regional differences in production, exportation, importation, and utilization of articles.
  • R.E. Murphy: Studies similarities and differences in ways people make a living.
  • Rudolf Wergens: Examines interaction between earth space and economic man, explains distribution consequences of this interaction.
  • Golz: Scientific investigation of nature’s influence on goods production.
  • E. Huntington: Studies geographical environment’s impact on human business, efficiency, and other human needs.
  • Hartshorn and Alexander: Studies spatial variation of activities related to producing, exchanging, and consuming goods and services.
  • John W. Alexander: Studies areal variations in man’s activities related to producing, exchanging, and consuming wealth.
  • N.G. Pounds: Concerned with the distribution of man’s productive activities (primary, secondary, tertiary) over the earth.
  • G.T. Renner: Deals with neglected aspects of man’s economic affairs, commodities, places, conditions of production, transportation, and distribution.

• Economic Geography focuses on:

  • Livelihood modes and their problems.
  • Basic resources and related human actions.
  • Exploitation of natural resources, including production, transport, distribution, and consumption.

• Human Objective Fulfillment:

  • Utilization of natural resources for development.
  • Historical consumption and rapid exploitation led to the need for sustainable development.
  • Classification of resources for proportional use.

• Types of Resources:

  • Biological and Abiotic: Based on origin.
  • Energy, Raw Materials, and Food Items: Based on purpose.

• Classification of Resources:

  • Natural Resources:
    • Products of the earth, called natural resources.
    • Divided into two classes:
      • Biotic (Organic/Living) Resources: Derived from trees and animals (e.g., forests, grasslands, wild animals, fish).
      • Abiotic (Inanimate/Non-Living) Resources: Include surface, rocks, air, water, minerals, fuels, metals, building stones.
  • Human Resources:
    • Most important besides natural resources.
    • Human labor adds value to natural resources.

• Purpose-Based Classification:

  • Energy Resources:

    • Used for power tools, divided into living and non-living resources.
    • Living Power: Wood, human, and animal power.
    • Industrial Power: Coal, mineral oil, natural gas, alcohol, solar energy, tidal power, atomic power.
    • Classified as non-renewable (coal, petroleum, natural gas) and renewable (forests, hydroelectricity, wind energy, solar energy, geothermal energy, tidal energy).

  • Raw Materials:

    • Mainstay of industrial development, divided into:
      • Minerals: Iron ore, non-ferrous metals, coal, diamond, limestone, gold, silver, mica, sandstone.
      • Vegetation: Grass, bushes, trees, wood, fibrous products, rubber, oil seeds, algae.
      • Animals: Cow, ox, buffalo, sheep, goat, camel, yak; products like milk, hides, wool, silk, bones.
      • Product Material: Fibers (cotton, flax, jute), rubber, oilseed crops (mustard, groundnut).

  • Food Items:

    • Derived from three types of resources:
      • Vegetation: Condiments, fruits, leaves, mushrooms.
      • Animals: Animal husbandry, poultry, bees keeping, fisheries.
      • Minerals: Salt, obtained from mining and seawater drying.

• Classification Based on Sustainability of Use:

  • Renewable Resources:

    • Can be reproduced using physical, mechanical, and chemical technology.
    • Examples: Forests, wildlife, water, wind, solar energy, soil, agricultural crops, human resources.

  • Non-Renewable Resources:

    • Cannot be replenished once exploited, quantity limited, long construction period.
    • Examples: Coal, petroleum, natural gas, copper, bauxite, uranium, thorium.

  • Recyclable Resources:

    • Can be used repeatedly.
    • Examples: Water, iron.

• Interconnected Economic Territories:

  • Regional functional organization forms an economic landscape.
  • Types (according to A.K. Philbrick):
    • Unit of Occupance to Economic Industry
    • Focality
    • Localization
    • Interconnection
    • Spatial Discontinuity and Continuity
    • Central Organization and Parallel Relationship

• Economic Geography:

  • Major branch of human geography.
  • Encompasses all human activities.
  • Acts as a unit of economic industry.
  • Depends on industry focus and local production leadership.
  • Interconnects human functions with industries and rent clubs.
  • Industries are linked and transported to central organization.
  • Economic activities of the region depend on mutual local coordination.

• Distribution Models and Economic Landscapes:

  • Vary due to natural, biological, and cultural processes.
  • Different interconnections in agriculture, industry, trade, and tertiary work.
  • Regional differences in interconnected forms.
  • Economic elements can demarcate agricultural states, industrial regions, etc.
  • Economic regions can be demarcated based on symmetry.
  • Proper analysis through economic regions helps understand economic landscapes and typological classification.

• Spatial functional interaction: mutual interaction between economic regions essential for development.
• Modern specialization and large-scale production affect global economy.
• Economic regions interconnected; no isolation due to global influences.
• Production incentives and means influenced by global socio-political conditions.
• Territorial functional interaction both horizontal and vertical.
• Edward L. Ullman emphasizes study of world and regional interactions in geography.
• Regional functional interaction basis of economic development.
• Economic landscapes structured by interconnected regional functional organizations.
• Example: Agricultural farm and manufacturing industry interconnected through central city.
• Economic hierarchy influences intensity of functional organization.
• Early economies lack surplus; lower regional functional organization.
• Industrial trade economies develop global functional organization.
• Regional economic development practical aspect of economic geography.
• Drayor (1920): economic geography as practical approach.
• Emphasizes resource utilization and production through regional integration.
• Economic development variation in different regions studied.
• Ullman: regional research aims to explain economic development levels.
• Importance of resource accessibility, cultural and technical progress.
• Balanced resource utilization key for regional economic development.
• Regional planning crucial for interconnected economic development in geography.

• Geography of economic activities focuses on location and organization in space.
• Related closely to the organization of economic space.
• Primary sector involves extraction or harvesting from the earth.
• Includes raw materials and basic foods production.
• Activities: agriculture (subsistence and commercial), mining, forestry.
• Also grazing, hunting and gathering, fishing, and quarrying.
• Agriculture: cultivation of crops and livestock.
• Mining: extraction of minerals and metals.
• Forestry: management and harvesting of forests.
• Grazing: livestock feeding on natural pastures.
• Hunting and gathering: traditional food collection methods.
• Fishing: harvesting fish and other aquatic resources.
• Quarrying: extraction of stone, sand, and minerals from quarries.

• Economic landscapes: fundamental concept in economic geography.
• Represents distinct economic characteristics of regions.
• Originated from German word “Landschaft”.
• Rudolf Wetgens emphasized economic geography’s goal: efficiency in natural resource use.
• Dynamic elements reflecting economic activities like agriculture, industry, mining, trade.
• Not static; undergoes continuous change due to economic processes.
• Past economic activities leave remnants influencing current landscape.
• Transformation process crucial for understanding landscape development.
• Weber and other scholars applied evolutionary approach to economic development.
• Existing economic landscape reflects resource structure, economic processes, and stage of development.
• New economic elements and methods rejuvenate landscape.
• Technological advancements and socio-economic changes impact landscape revival.
• Regional economic development: practical aspect of economic geography.
• Drayor (1920): economic geography as practical approach.
• Emphasizes resource utilization and production through regional integration.
• Objective: explain economic development variations among regions.
• Measurement and analysis of economic development aspects crucial.
• Ullman’s perspective: determine and explain current economic development levels.
• Importance of resource accessibility, cultural, and technical progress.
• Balanced resource utilization essential for regional economic development.
• Regional planning critical for interconnected economic development in geography.

• Economic landscape analysis requires understanding internal elements.
• Position and placement of economic activities crucial in economic geography.
• Maps essential for studying economic activity status and distribution.
• Economic geographers focus on explaining economic works, placement, and distribution models.
• Regional and systematic approaches used for analysis.
• New economic methods replace old ones over time.
• Ancient elements in economic landscape reflect past economic systems.
• J.C. Weaver’s trilogy of Structure, Process, and Stage used to explain economic landscape.
• Structure includes natural and human resource characteristics.
• Economic development stages: young, mature, old.
• Examples: Brazil and Mexico in youth stage; USA, Canada, Russia in mature stage; UK in old stage.
• Economic landscape synthesis involves composite regional elements.
• Geographical perspective integrates various elements for comprehensive understanding.

• Spatial functional interaction: mutually beneficial interaction between different economic regions essential for development.
• Modern specialization and production on large scale affects global economy, influenced by socio-political conditions.
• Economic regions interconnected; no isolation possible due to global economic impact.
• Incentives for production obtained not only locally but from distant regions, impacting consumption globally.
• Territorial functional interaction: horizontal and vertical interaction between economic regions at different hierarchy levels.
• Edward L. Ullman: emphasizes study of world and regional interactions as core of geographical study.
• Regional functional interaction: basis of economic development; interconnected sequences forming economic functional hierarchy.
• Example: agricultural farm linked to central commodity manufacturing industry via city center; illustrates hierarchical interconnection.
• Economic landscapes interconnected globally, intensity varies with economic system complexity.
• Development stages affect functional organization; industrial trade economies develop global functional organizations.
• Regional economic development: practical aspect of economic geography since 1920s.
• Emphasizes resource utilization and production maximization through regional economic integration.
• Objective: explain economic development variation among regions; analyze resource availability and technological progress.
• Importance of regional planning for balanced resource utilization and proper regional functional interaction.
• Economic geography role: measure and analyze economic development aspects for regional planning.
• Regional planning essential for sustainable economic development and functional organization coherence.

• Human geography studies variation in human economic activities across different places and times.
• Focuses on distribution patterns of economic activities and factors influencing regional differentiation.
• Economic resources include natural resources like soil, water, minerals, energy, etc.
• Studies encompass hunting, fisheries, animal husbandry, forestry, agriculture, manufacturing, transport, communication, trade, commerce.
• Economic landscapes are dynamic; constantly changing.
• Economic activities grouped based on objectives and functions.
• Importance of location central to economic activities.
• Maps crucial for understanding spatial distribution and characteristics of economic activities.
• Economic geography inseparable from economic activity; dynamic interaction between humans and nature.

• Economy: system for utilizing available resources and creating new ones.
• Aims to balance unlimited needs with limited resources for consumer satisfaction, producer profit, and societal welfare.
• Divided into three sectors:
  • Primary Sector: Involves extraction and harvesting of natural resources.
  • Secondary Sector: Includes manufacturing and processing of raw materials into finished goods.
  • Tertiary or Service Sector: Focuses on providing services rather than goods, including retail, healthcare, education, finance, etc.
• Each sector plays a role in economic activities and contributes to overall economic growth.
• Primary sector supports raw material supply for secondary sector.
• Secondary sector transforms raw materials into products for consumption.
• Tertiary sector supports economic activities through service provision.
• Interdependence among sectors crucial for balanced economic development and societal welfare.

• Economy is categorized into three sectors for documenting economic activities:
  • Primary Sector: Focuses on natural resource extraction and utilization.
    • Includes agriculture, forestry, fishing, mining, and quarrying.
  • Secondary Sector: Involves manufacturing and production of goods.
    • Includes construction, manufacturing (e.g., bread production), and utilities like electricity, gas, and water supply.
  • Tertiary or Service Sector: Provides services to support primary and secondary sectors.
    • Includes transport, communications, banking, insurance, storage, and community services.
• Additional categorizations of the economy:
  • Commodity Sector: Combines primary and secondary sectors, focusing on physical goods production.
  • Non-Goods Sector: Refers to the service sector, which does not produce physical goods.
  • Organized Sector: Includes units that maintain records of economic activities.
    • Represents about 9% of the Indian economy.
  • Unorganized Sector: Includes units without formal records of economic activities.
    • Includes informal sectors like hawkers, street vendors, daily laborers.
    • Contributes approximately 91% to the Indian economy.
• These categorizations help in understanding the structure and composition of economic activities within an economy.

• Agriculture is crucial for Indian economy, contributing 18% to GDP and employing 50% of workforce.
• India leads globally in production of pulses, rice, wheat, spices, and vegetables.
• Production of food grains increased from 257 million tons in 2012-13 to 264 million tons in 2013-14.
• Challenges in Indian agriculture include market integration and timely access to farming information.
• Contribution of agriculture to GDP declined to around 26% in 2001-02 from 48-60% in earlier decades.
• Agriculture and allied sectors constitute 13.9% of GDP (2013-14).
• Agricultural exports account for one-fifth of total exports from India.
• National Food Security Mission aims to increase production of rice, wheat, pulses, and coarse cereals.
• Spices exports expected to reach US$ 3 billion by 2016-17.
• Training and capacity building crucial for enhancing agricultural performance.
• Government initiatives needed to support small and large farmers with land, loans, and machinery to boost agricultural productivity and economic growth.

• Industrial park: Area designated primarily for industry, devoid of residential provision.
• Typically located on city outskirts, consists of factories and industrial buildings.
• Secondary sector of economy: Involves production of finished goods or construction.
• Takes raw materials from primary sector and converts them into usable products.
• Divided into light industry (e.g., electronics assembly) and heavy industry (e.g., steel manufacturing).
• Industries in this sector consume significant energy, use machinery for production, and produce waste and heat.
• Environmental concerns arise from waste materials and pollution.
• Secondary sector supports primary (resource extraction) and tertiary (services) sectors.
• Economists differentiate between wealth-producing sectors (like manufacturing) and wealth-consuming sectors (like services).
• Manufacturing crucial for economic growth; nations exporting manufactured goods often experience higher GDP growth.
• Generates well-paying jobs, particularly in engineering, promoting social mobility and quality of life initiatives.
• Vital for funding healthcare, infrastructure, and other societal needs through tax revenue.

• Service sector: Third sector in the three-sector theory of economies.
• Involves production of services rather than tangible goods.
• Services are intangible goods like attention, advice, access, experience, and affective labor.
• Information production sometimes classified as a separate sector, the “quaternary sector.”
• Tertiary sector includes services provided to end-consumers and businesses.
• Services encompass transportation, distribution, retail and wholesale sales, pest control, recreation, etc.
• Goods may undergo transformation during service delivery, such as in the restaurant industry.
• Emphasis is on customer service and enhancing consumer experience.
• Service sector crucial for enhancing economic activities beyond manufacturing and raw material extraction.
• Supports economic growth by facilitating consumption and enhancing quality of life through various services.

• Economic zones encompass three interconnected sectors: primary, secondary, and tertiary.
• Primary Sector: Involves extraction of raw materials from the earth, e.g., agriculture, mining, forestry.
• Secondary Sector: Includes manufacturing industries that process raw materials into finished goods, e.g., factories, construction.
• Tertiary Sector: Comprises services provided to businesses and consumers, e.g., transportation, retail, healthcare, education.
• These sectors are interdependent and mutually supportive.
• Primary sector supplies raw materials essential for manufacturing in the secondary sector.
• Secondary sector produces goods that are distributed and serviced by the tertiary sector.
• Tertiary sector enhances the value of products and services, supporting economic activities.
• Combined, these sectors form the foundation of a country’s economy.
• Each sector contributes uniquely to economic growth and stability.
• Specialized divisions within these sectors, like India’s tea sector or USA’s wheat production, bolster national economies.
• Interconnectedness ensures comprehensive coverage of economic activities, fostering national development and global competitiveness.