Variations in Economic Structure Gross National Income PI

Variations in Economic Structure Gross National Income PI PI PI

Distribution of Gross Domestic Product (%) GDP = Final Sales to Government, Consumers & Investment Note: 2003 Exports includes services

Imports/Exports 2002 -2003 ($ billions)

Structure of Merchandise Exports (%)

Structure of Merchandise Imports (%)

Index of Personal Income by State Relative to U. S.

Labor Market Adjustment Model North D S South S D D S QSouth S D QNorth

Changing Composition of Employment in the U. S.

Development of the U. S. Service Sector

Decomposition of Services

Development: The Circular Model of Capital Flow Stock of Productive Capacity Industrial Output Investment • Interest rates • Tax policy & public investment Final Consumer Demand “Savings” Business Income (Value Added) Payments to Households “Savings” - retained earnings, household savings, institutional investors, international capital sources

Vance’s Exogenic And Endogenic Model

Impact of Scale Economies on Market Division B Market Division A Market Division P P P a a I II distance t t P t a a I II

Impact of Transport C Improvement Market Division P P I II

Process of Regional Specialization Region A Region B Initial Condition: No Interregional Trade Local Production Equals Location Consumption

Process of Regional Specialization, Continued Exports to A Exports To B Region A Imports from B Region B Imports from A

Process of Regional Specialization, Continued Interregional Exports Production for Local Use Interregional Imports Production for Local Use