1. Variations in Economic Structure
Gross National Income PI PI PI

2. Distribution of Gross Domestic Product (%)
GDP = Final Sales to Government, Consumers & Investment
Note: 2003 Exports includes services

3. Imports/Exports 2002-2003 ($ billions)

4. Structure of Merchandise Exports (%)

5. Structure of Merchandise Imports (%)

8. Index of Personal Income by State Relative to U.S.

9. Labor Market Adjustment Model
North D S
South S D S D D S
QSouth
QNorth

10. Changing Composition of Employment in the U.S.

11. Development of the U.S. Service Sector

12. Decomposition of Services

13. Development: The Circular Model of Capital Flow
Interest rates
Tax policy & public
investment
Stock of Productive
Capacity
Industrial
Output
Final Consumer
Demand
Investment
“Savings”
Business
Income
(Value Added)
Payments to
Households
“Savings” - retained earnings, household savings, institutional
investors, international capital sources

14. Vance’s
Exogenic
And
Endogenic
Model

15. Impact of Scale Economies on Market DivisionB A
Market Division
Market Division P t P t P P t a a a a I II I II
distance

16. Impact of Transport Improvement
Market Division P P I II

17. Process of Regional Specialization
Region B
Region A
Initial Condition: No Interregional Trade
Local Production Equals Location Consumption

18. Process of Regional Specialization, Continued
Exports to A
Exports
To B
Region A
Region B
Imports from A
Imports from B

19. Process of Regional Specialization, Continued
Interregional Exports
Production for
Local Use
Production for
Local Use
Interregional Imports