Tourism and Regional Development Issues - Tourism and Development: Concepts and Issues - page 147

Table 5.2 Early regional economic development theorists

Author Key concepts

Schumpeter, 1934, 1961 Emphasised innovation and entrepreneurship; rate

depends on favourable social climate

Perroux, 1955
(see Perroux, 1988)

Growth pole (theory component); development
poles (location containing propulsive
enterprises that generate spread effects through
investments)

Myrdal, 1963
(1st published 1957)

Circular and cumulative causation; spread effects
(positive - economic expansion from growth
centre); backwash effects (negative - market
forces increase regional inequalities)

Hirschman, 1958 Polarisation and trickle-down effects

Friedman, 1966 Centre-periphery model; economic growth is

externally induced; dominant centres feed off
less developed regions increasing inequalities;
advocates growth centre strategy

Source: Above authors plus Higgins and Higgins, 1979; Preston, 1984.

means of production or source of supply or the new organisation of a new
industry. Perroux (1955, see Perroux, 1988) outlined growth pole theory
with development poles. Development poles are identified as locations
which contain propulsive enterprises that generate spread effects through
investments. A growth pole consists of a cluster of expanding industries
that are spatially concentrated and set off a chain reaction of minor expan-
sions in the surrounding hinterland (Haggett, 1975). The arguments pre-
sented in favour of growth poles are that they will result in agglomeration
economies. Agglomeration economies are a result of the cost reductions
which occur due to spatial concentration of economic activities. Agglo-
meration economies can range from savings, which benefit one establish-
ment, to agglomeration economies that spread throughout an entire region.
Early work on agglomeration economies and regional development is
linked to Weber (1909), Isard (1956), Hirschman (1958) and Myrdal (1963).
Myrdal discussed the process of cumulative causation, which refers to the
process of change in one direction that can reinforce other tendencies for
change in the same direction. For example, a region may start to prosper and
self-reinforcing factors can cause cumulative growth. An increased income
allows for more amenities, attracts business and thereby increases agglom-
eration economies (Blair, 1995). In the context of tourism development,
improved infrastructure provided by the government may help to stimulate
additional tourism investment.