In the 1970, Lakshmanan was involved in development of a set of complex interregional model for the US economy. In this paper, we draw attention to some of the important characteristic 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 an hierarchical inclusion process that examines the nature and strength of the implicit network properties inherent in the exchange of good 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 Sonis
Geoffrey J.D. Hewings
Nuzul Achjar