Export Base:
The region which is capable of producing and exporting goods & services is a more prosperous region.
For example,
- Kerala was developed in medieval times due to spices export. At the present time, Kerala is developed because of services export.
- The pivot location of Singapore helps to prosper.
- Coastal states of India more developed as compare to landlock states because of the favorable export base( i.e port).
- In the world, landlocked countries are not as developed as countries that have a coastal export base.
Regional multiplier theory:
Growth multiplies growth.
For example,
- Growth in steel plan needs more machinery, and more machinery needs more steel.
- A better infrastructure needed for economic activities. Better economic activities help to establish better infrastructure.
ConversionConversion EmoticonEmoticon