LECTURE -5B – GROWTH POLE THEORY

THEORY OF SETTLEMENT

GROWTH POLE THEORY

COURSE ARC315 : THEORY OF SETTLEMENT INSTRUCTOR 19838

 LECTURE -5B – GROWTH POLE THEORY

The growth pole theory was developed by French regional economist,

Francois Perroux, in 1955. He was concerned with the phenomenon
of economic development and with the process of structural change.

His arguments were based on Schumpeter’s theories of the role of

innovations and large-scale firms.

The central idea of the growth poles theory is that economic

development, or growth, is not uniform over an entire region, but
instead takes place around a specific pole (or cluster). This pole is
often characterized by core (key) industries around which linked
industries develop, mainly through direct and indirect effects.

A growth pole is a regional and industrial planning model for a “set of

expanding industries located in an urban area and inducing further
development of economic activity throughout its zone of influence.”
COURSE ARC315 : THEORY OF SETTLEMENT INSTRUCTOR 19838
 LECTURE -5B – GROWTH POLE THEORY

Economic space
1. Homogeneous aggregate
2. Economic plan
3. Force of communication within each other

Assumptions
Theory of development (growth, is not uniform over an entire region, but instead
takes place around a specific pole or aggregates )
Inter Industrial Linkages (similar kind of industries of dependent industries will be
interrelated within an economic area)

Factors
1. External economy of scale (positive or negative)
2. Agglomerations
3. Linkages (forward and backward)

COURSE ARC315 : THEORY OF SETTLEMENT INSTRUCTOR 19838

 LECTURE -5B – GROWTH POLE THEORY
TERTIARY RYGROWTH POLE

BREAK
INDUSTRY
SCRUE
STEERING MAKING
INDUSTRY INDUSTRY

AUAUTOM WIND
OBILE SHEILD
INDUSTRY INDUSTRY
PRIMARY GROWTH POLE

STEEL
COAL PLUMBING
INDUSTRY
MINING PARTS

SECONDARYGROWTH POLE

THERMAL STEEL
POWER FURNITURES

PLANT

COURSE ARC315 : THEORY OF SETTLEMENT INSTRUCTOR 19838

 LECTURE -5B – GROWTH POLE THEORY

Direct effects imply the core industry purchasing goods and

services from its suppliers (upstream linked industries), or
providing goods and services to its customers (downstream linked
industries).

Indirect effects can involve the demand for goods and services by
people employed by the core and linked industries supporting the
development and expansion of economic activities such as retail.

COURSE ARC315 : THEORY OF SETTLEMENT INSTRUCTOR 19838

 LECTURE -5B – GROWTH POLE THEORY

The expansion of the core industry implies the expansion of

output, employment, related investments, as well as new
technologies and new industrial sectors. Because of scale and
agglomeration economies near the growth pole, regional
development is unbalanced.

Transportation, especially transport terminals, can play a significant

role in such a process. The more dependent or related an activity is
to transportation, the more likely and strong this relationship.

At a later stage, the emergence of secondary growth poles is

possible, mainly if a secondary industrial sector emerges with its
own linked industries, contributing the regional economic diversity

COURSE ARC315 : THEORY OF SETTLEMENT INSTRUCTOR 19838

 LECTURE -5B – GROWTH POLE THEORY

COURSE ARC315 : THEORY OF SETTLEMENT INSTRUCTOR 19838

 LECTURE -5B – GROWTH POLE THEORY

Above mention figures-A shows that initially any single

growth pole started and then its dependent terminal started
clustering near that parent or growth pole. And then due to
that cluster peoples started migrating nearer to that so it
creates an agglomeration near that.

Same way figure-B shows that due to the growth of that

primary pole, another growth pole also started over that
region it is called secondary growth pole. This may connect
with the primary terminal. And then it will grow like primary
growth pole.
COURSE ARC315 : THEORY OF SETTLEMENT INSTRUCTOR 19838