| Summary: | The existence of regional disparities is not a necessary requirement for the perpetuation of capitalism. Nevertheless pockets of high unemployment and economic distress are likely features of the capitalist spatial system. The lack of coordination in time and space between individual firms will inevitably result in accumulation crises and spatial agglomeration. Inequality is the product of an economic system that is dominated by the interests of individual enterprises. The existence of regional inequality may be a barrier to aggregate economic growth, thus the state intervenes to coordinate the space economy and maintain the conditions for accumulation. Theoretically, the state is not dependent upon any one or group of firms, whatever their locations, for its continued survival.
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