Chapter Overview
Understanding different economic theories and how they shape our analysis of spatial economies.
This chapter explores the various theoretical frameworks and discourses that economists and geographers use to understand economic activity. We examine how different theoretical lenses lead to different interpretations of economic phenomena and spatial patterns, from neoclassical approaches to political economy perspectives.
Chapter Resources
Required Reading
- Textbook: Chapter 2
- Coe, Kelly & Yeung (2019)
- Economic Geography: A Contemporary Introduction
Download Slides
Video Content
- Multiple lecture sections
- Theoretical foundations
- Watch at your own pace
Video Lectures
Section 2.1: Introduction to Economic Theory ~15 minutes
An overview of why theory matters in economic geography and how different theoretical frameworks shape our understanding of spatial economies.
Section 2.2: Neoclassical Economics & Geography ~15 minutes
Exploring neoclassical economic theory and its application to geographic analysis, including assumptions about rational actors and market equilibrium.
Section 2.3: Political Economy Approaches ~15 minutes
Understanding political economy perspectives that emphasize power relations, inequality, and the role of institutions in shaping economic geography.
Section 2.4: Contemporary Theoretical Debates ~15 minutes
Current debates in economic geography theory, including institutional approaches, relational thinking, and hybrid frameworks.
Key Takeaways
Theoretical Foundations
- Economic theories are not neutral—they shape how we see and analyze the world
- Neoclassical approaches emphasize efficiency, markets, and rational choice
- Political economy highlights power, inequality, and structural forces
- No single theory captures the full complexity of economic geography
Key Concepts
- Discourse: How we talk about and frame economic issues matters
- Embeddedness: Economic activity is embedded in social and cultural contexts
- Path Dependence: Historical trajectories shape present possibilities
- Agency vs. Structure: The tension between individual action and systemic forces
Discussion Questions
Consider these questions as you watch the lectures and complete the readings:
- How do different economic theories lead to different policy recommendations?
- What assumptions do neoclassical economists make, and how realistic are they?
- How does a political economy perspective change how we view economic inequality?
- Can you identify examples of economic discourse in news media or political debates?
- Why might geographers prefer some theoretical approaches over others?