What is the connection between industry and economic development?
The connection between industry and economic development is something that has been explored since the arrival of the Industrial Revolution. With industrial development, it is often focused on the cultivation and stabilization of the economy in a given geographical location, for many people it is not unusual to see the presence of viable industry in the area as essential for this continuing economic development. Without the presence of industry in some way, economic growth is likely to slow down over time and may even begin to reverse.
Understanding the connection between industry and economic development requires identification of what the industry provides a given geographical area. One of the first advantages that have companies that represent several different industries in the community are that these businesses provide jobs for people living nearby. These jobs, in turn, provide employees with a source of income that allows the purchase of goods services, make higher purchases of tickets such as houses and vehicles, and in generalThey spend money on other businesses in the community. When the industry expands, it means more jobs for more people, resulting in more money flowing through the local economy.
This connection between industry and economic development means that consumer trust is higher, a situation that is likely to attract more people and developers into the area. As more companies introduce the presence in this area, they offer jobs for those who have moved to the community. Here, the connection between industry and economic development is reflected in the presence of these new companies that support the economy by stimulating the housing market, attracting more retailers to establish shops in this area and encourage the addition of more municipal services. The whole activity increases the amount of money with the economy, which in turn means that everyone enjoys a higher standard of living than it would be possible ifThere was less industry in this area.
One way that the connection between industry and economic development is best illustrated is when one or more key sectors have decided to pull out of the community. The resulting losses of jobs lead to less money circulating in the economy, seizure of houses and possibly a restriction of several businesses such as restaurants and local retailers. If more sectors do not move back to the area and do not help create jobs that will replace those lost, there is a great chance that there will be no real economic development and the community will eventually die.