The Economic Base Theory was Introduced by the Economic Geographer Alexander in 1950.
This Theory divides the urban economy into two sectors: basic and non-basic activities.
Basic activities are city-forming activities like large-scale industries, that serve the region outside the city's own community.
Non-Basic Activities are city-serving activities. They are confined among and within the city population.
Basic activities help a city to attract foreign revenues within the city, which in turn helps the economic growth of the city. This Basic activities, i.e. export-based goods and services are very essential to the economic growth of an urban region. In other words, the export sector is the primary cause of local Economic growth.
For more understanding watch the video without skipping. 🤗
