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explains the whole theory with case studies of madagascar and pune (city in inida).
Typology: Assignments
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POONAM 18513006
s theories of the role of innovations and large –scale firms. In **Schumpeter
s analyses** , development occurs as a result of discontinuous spurts in a dynamic world. Such ‘discontinuous spurts’ are caused by the innovative entrepreneur whose activities generally take place in large-scale firms. GROWTH POLE THEORYBasic Assumptions The concept of growth poles and growth centers is based on certain assumption about the real world:
Objective of Theory Perroux in his attempt to understand the modern process of economic development, discovered that –
Dynamic Propulsive Firm The characteristics of a dynamic propulsive firm are that it is- (i) relatively large, (ii) has a high ability to innovate, (iii) and belongs to a relatively fast growing sector, (iv) and the quantity and intensity of its interrelations with others sectors of the economic are important enough for the induced effects to be transmitted to them.
Leading Propulsive Firm The characteristics of a leading propulsive industry are also similar. Such an industry has – (1) highly advanced level of technology and managerial expertise, (2) high income elasticity of demand for its products, (3) marked local multiplier effects, and (4) strong inter-industry linkages with other sectors.
Basic types of polarization Growth poles theory thus documents the contribution of polarization to the development of poles as well as peripheries. This theory identifies four basis types of polarization: A. Technological and technical – based on the concentration of new technology in the growth pole. B. Income – the growth pole contributes to the concentration and the growth of income due to expansion of services and dependence on demand and profit. C. Psychological based on the optimistic anticipation of future demand in the propelled region. D. Geographical based on the concentration of economic activity in a geographically determined space.
Contributions of the theory The theory of growth poles makes several contribution:
CASE STUDY
OBJECTIVE OF THE POLES (^) Was to address key constraints to investment, including infrastructure, business environment, institutional capacity, skills and access to finance. The poles are multi-sector projects with particular focus on tourism-led growth in Nosy Be, mining- and tourism-led growth in Fort Dauphin, and export-led growth in Antananarivo- Antsirabe.
In Nosy Be , the pole focuses on