The Central Place System in the Northwest

The Central Place System in the Northwest

The Central Place System in the Northwest Atlas - p. 127-139: Maps & text Consumer-oriented services & industry locally oriented manufacturing construction transportation/communications/utilities retail & wholesale trade finance, insurance, & real estate personal services local government Distribution of Central Place Functions Retail - p. 137 atlas Eating & Drinking - p. 137 atlas Hotels & Lodging, p. 137 atlas Health Services, p. 137 atlas (map) Wholesale Trade, p. 137-8 atlas (map) (Producer Services) p. 137 atlas Other services (consumer, government)

Logic of Central Place System: Its Linkage with Basic Industry Basic Industry = Export Tied Industry Nonbasic = locally tied industry What is basic at one level of the central place system is often nonbasic at Higher levels Backward linkages play a role in the relationship between the level of export/basic jobs and nonbasic/local jobs Early Settlement Water

Coastal Agricultural Interior Basic jobs Direct Jobs Indirect jobs Early Settlement - First Hierarchy Water

Coastal Agricultural Interior Basic jobs Direct Jobs Indirect jobs

Settlement - The Hierarchy in Modern Times Water Coastal Agricultural Interior

Basic jobs Direct Jobs Indirect jobs Settlement - The Hierarchy in Coming Years? Water Coastal

Agricultural Interior Basic jobs Direct Jobs Indirect jobs New Economy

Source: Preston, The Structure of Central Place Systems Market Areas Perceived By Rural County Commissioners Source, Preston, Source: Preston, The Structure of Central Place Systems From Vision 2040, the current Puget Sound Regional Council regional development plan Economic Base & The Settlement System Exports

The Region Imports Local Multiplier Effects Washington Input-Output Table ($ billions) Net industrial exports are roughly offset by imports to industries and categories of final demand (households, investment, state & local govt.) Natural Resources Manufacturing & Construction Services Subtotal Labor Income Other Value Added Imports Total Purchases Natural Resources

0.6 Manufacturing & Construction 2.7 Services 0.4 Subtotal 3.8 1.6 2.0 4.2 3.9 2.7 2.3 13.1 22.3

35.1 60.2 40.1 16.6 109.6 226.6 21.7 70.0 92.1 128.5 61.5 82.0 364.0 45.6 107.1 156.4 172.5 80.8 193.9

603.7 Industrial Imports Net Industrial Exports: 246.7 193.9 = 52.8 Investment & Fed. Govt. Consumption S&L Govt. & Exports Total Sales 0.6 0.6 8.1 13.1 10.6 131.8 143.0 0.0 30.8 50.2 224.0

42.5 14.4 57.5 23.2 5.1 16.3 117.6 127.9 110.7 246.7 11.3 1.2 1.8 261.0 226.6 364.0 603.7 207.1 117.9

277.6 1206.3 Imports to Consumption, Investment, Government 68.2 Industrial Exports Generalized Model of Trade From/To Basic Non-Basic I mports Total Basic 0 16.5 16.5 33 Non-Basic

0 50 16.5 67 Export 33 0 X (33) Total 33 67 (33) 100 Dividing up the columns in this model, we have: Basic Non-Basic Import

Basic 0 .5 .5 Non-Basic 0 .75 .25 Consequences of A Change in Export Levels Through the Multiplier System Round 1 Round 2 Round 3 Round 4 Round 5 And so on

B-NB NB-NB NB-NB NB-NB NB-NB Convergence of the sum .5(1) = .75*.5 .75*.375 .75*.28 .75*.21 .5 .375 .28 .21 .16 Total

2.0 Shifts in the Structure of This System of Multipliers over Time Local purchases expand as thresholds are crossed Continued specialization offsets threshold effects Upshot: relative stability Shift to a larger service economy Spatial shifts due to lowered transport and interaction costs Export Markets Washington State Source: Washington State Input-Output Tables Composition of Washington Exports Source: Washington State Input-Output Tables

Old Slide after this one Left in PowerPoint file for those interested in history Washington I/O Table ($ billions) Net industrial exports are roughly offset by imports to industries and categories of final demand (households, investment, and state and local governments) Natural Resources Manufacturing & Construction Services Subtotal Labor Income Other Value Added Imports Total Purchases Natural Manufacturing Resources & Construction

0.6 1.9 0.8 2.3 3.7 2.4 1.6 0.9 8.5 8.5 15.3 28.4 30.7 5.0 64.2 128.3 Services 0.3

Subtotal 2.8 Consumption 0.7 9.5 53.2 63.1 94.2 51.5 45.8 254.5 18.8 70.8 95.1 127.3 58.1 110.9 391.3

4.8 97.4 102.9 0.0 20.2 40.7 163.8 Industrial Imports Net Industrial Exports: 155.9-110.9 = 45.0 Exports Other F.D. 4.8 0.2 77.4 73.7 155.9 7.1 0.7

0.0 163.6 27.3 12.6 37.5 18.1 1.5 8.4 65.5 Total Sales 8.5 128.3 254.5 391.3 152.5 80.5 160.0 784.3

Imports to Consumption & Other F.D. 49.1 Industrial Exports

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