Geography · Regional Planning and Development
According to regional export-base theory, a region will experience growth if the demand for its export increases. Under which of the following conditions will a region FAIL to grow despite export demand dynamics?
- 1When transport improvements lower total delivery costs for regional producers
- 2When the income elasticity of demand for its exports is low or negative, making demand growth insufficient✓
- 3When resource depletion occurs in competing producing areas
- 4When the per capita income in the exogenous sector is rising rapidly
Correct answer
When the income elasticity of demand for its exports is low or negative, making demand growth insufficient
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