In the 1970s, Lakshmanan was involved in developing a set of complex interregional models for the US economy. In this paper, we draw attention to some of the important characteristics of the spatial pattern of exchange characterizing of economies, expanding and elaborating upon the initial formulation embodied in the notion of a field of influence of change. In particular, attention is drawn to the nature of internal (to the region) and external sources of change and their impacts; these formulations are interpreted through a hierarchical inclusion process that examines the nature and strength of the implicit network properties inherent in the exchange of goods and services over space. The focus of attention will be on the micro-level of economic subsystems; application is made to the interregional economies of Indonesia to explore commonalties and differences in the nature of the spatial exchange across five macro regions.

Michael Sonic
Geoffrey JD Hewings
Nuzul Achjar