Regional Concentration and Diffusion Theory

Based on inter-regional trade and inter-industry, this theory has a development objectives of increasing per capita income through the development process "spreads and back-wash effect" (Myrdal), or the birth and development of polarization effects (Hirchman). The problem of this theory is only directed at areas (cities) that have a certain high growth. But this could be solved with the government's role in reducing the effects of polarization and reduce the gap (Myrdal) through the construction of infrastructure (Hirchman). Need careful implementation of the government in the form of zoning (the spread of growth a central location) and the indicator variable number of industries, the number of industries and industrial LQ.

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