Abstract: This literature review provides an analysis of regional development from a new economic geography perspective (NEG). The theory of new economic geography suggests that economic growth in a specific area follows a pattern of circular causation. This involves the interplay of increasing returns to scale and the interconnected relationships between companies, resulting in the clustering of activities that reinforce each other over time. The paper also discusses a connection between the urban city and the environmental problems and implications of regional development from a new economic geography perspective. In this way, the new economic region is based on a diffuse territory, composed of a well-located central nucleus that interacts with other places that also make up its economic space, which thus passes from superficial continuity to reticular discontinuity. The relationship between investment and site selection and increased returns with imperfect competition are also discussed. As well as focusing on the new economic geography in Jordan. In conclusion, the economic region is currently presented as an indisputable geographical reality that refutes the thesis about the homogenising power of the globalising impulse.

Keywords: New economic geography, economic geography, regional development

Pages: 133-160

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