Regional disparities in social and economic development.
The concept of core–periphery.
The process of cumulative causation from initial advantage(s), spread and backwash effects, regional divergence and convergence.
A Lorenz curve is a graphical representation of the distribution of income or wealth within a population.
Lorenz curves graph percentiles of the population against cumulative income or wealth of people at or below that percentile.
Lorenz curves, along with their derivative statistics, are widely used to measure inequality across a population.
Because Lorenz curves are mathematical estimates based on fitting a continuous curve to incomplete and discontinuous data, they may be imperfect measures of true inequality.
Use the data provided in the sheet on the left to construct a Lorenz curve for Malaysia.
Make a copy of the data
Fill in the yellow cells by calculating the correct value (according to the column title)
Create an additional column "GDP % (of total) / Pop % (of total)"
Sort all the data according to the GDP % (of total) / Pop % (of total) column.
Add two more columns - Cumulative pop % and Cumulative GDP %
Add a new 'row 2' below the column titles and insert zero for the cumulative values
Using the cumulative % columns, insert a scatter plot with data points connected by smoothed lines.
Label the axes and add an appropriate chart title.
Then, describe your curve
Can you use this information to calculate the Gini Coefficient for Malaysia?
Cumulative causation is the process of self-sustaining economic growth in a city or region. The term was widely used in economic and development geography in the 1960s. It referred to positive feedbacks caused when an initial investment (e.g. a new coal mine) creates the conditions necessary for further private and public investment. With luck and judgment these further investments, in turn, can create more economic growth and (possibly) a more complex, networked economy
The Swedish economist Gunnar Myrdal produced his cumulative causation theory in 1957. Figure 14.8 is a simplified version. Cumulative causation theory was set in the context of developing countries, but the theory can also be applied reasonably to more advanced nations as well. A three-stage sequence can be recognised:
The pre-industrial stage, when regional differences are minimal
A period of rapid economic growth characterised by increasing regional economic divergence (illustrated in the figure on the right)
A stage of regional economic convergence when the significant wealth generated in the most affluent region(s) spreads to other parts of the country
Regional economic divergence and convergence
Assess the role of cumulative causation in creating regional divergence [20]
This figure shows the core-periphery model of regional development.
Describe and explain the relationships between the different regions in the model. [10]
‘Regional disparities in development are best explained by the concept of core-periphery.’
With reference to one country, how far do you agree? [15]