Characteristics & Causes of Regional Disparities

Differences in Economic acivity, levels of income, & employment

differ in terms of quality & availability of infrastructure, including transportation, communication & utilities

Different levels of access to natural resources (water, land, & minerals)

can affect economic activity & development

Regions may differ in terms of population size, density, demographic characteristics (age, gender & ethnicity)

Level of education & skills of their residents

Quality & Effectiveness of their governance structures

different cultural & historical backgrounds

Regions experience different levels of economic development in the past,

=> persistent disparities over time

Access to valuable natural resources

(Oil, gas, minerals) => higher levels of economic development

Well-connected to transportation networks, communication systems, & other infrastructure may be better positioned to attract investment & economic activity

Regions that have higher levels of education & skills among their residents may be better positioned to attract high-skill jobs & industries

Effective & Responsive governance structures + policies that promote economic development, may be better positioned to attract investment & create jobs

Aging Populations & declining birth rates = slower economic growth

Regions that are more integrated into global markets may benefit from increased trade & investment

• Those less integrated may struggle to compete