Implications of GIS Technology on Economic Development

This content discusses the implications of Geographic Information System (GIS) technology on various aspects of an economy, including forecasting storms or erosional activities, predicting unemployment rates, and enhancing productivity by maintaining a proper supply chain. The adoption of GIS technology helps organizations associated with real estate markets locate suitable places for construction, predict employment status, and undertake remedial measures to ensure smooth economic performance.

ECONOMICS ASSIGNMENT
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Table of contents
Introduction......................................................................................................................................3
A critical discussion based on the way adoption of technology tends to affect product market
equilibrium.......................................................................................................................................3
Briefly elaborate potential implications of GIS technology on the overall economy.....................6
Conclusion.......................................................................................................................................8
Reference List................................................................................................................................10
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Introduction
A brief Economics Assignment is undertaken based on application of Geographic Information
System (GIS) and its implication on real estate market or urban planning. For the purpose of
understanding the implication in a better manner, a critical discussion is carried on based on the
way adoption of technology tends to affect product market equilibrium has been focussed on. In
addition, a brief elaboration on basis of potential implications of GIS on the overall economy has
also been given adequate attention. It can be stated that incapability on part of the organisation to
get access to adequate technology required for efficiently undertaking business related activities
might tend to make the organisation concerned incapable to survive in the world of competition.
It can be highly problematic on part of real estate market to get knowledge of sufficient vacant
lands required to meet the level of demand of its targeted customers. This is mainly owing to the
fact that it is quite impossible on part of the individual or the organisation concerned to know the
geographical condition of every possible place on the Earth. Such incapability is likely to affect
the state of equilibrium condition of the market concerned. Thereby, GIS technology that helps
in detection of storage and display of data in relation to prevalence of various positions within
the surface of the Earth via computer tends to play an effective role in this regard.
A critical discussion based on the way adoption of technology tends to affect
product market equilibrium
Equilibrium plays a major role in case of efficient performance of various sectors present within
the prevalent market structure. This is mainly followed by equalisation of level of supply to the
level of demand imposed. Incapability to match the prevalent demand level to the existing level
of supply might tend to act as a barrier on part of the organisation concerned to maintain its
existence within the existing market structure. Adoption of adequate technology helpful in
smooth conductance of business related activities can play an important role in this regard. As
cited by Bonroy and Constantatos (2014), technology helps the organisation concerned maintain
its overall supply chain in a proper manner by enhancing its level of productivity adequately as
per the level of demand. This, thereby, helps the organisation attain an equilibrium condition and
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earn a good reputable position not only within the industry concerned but also among its
customers targeted.
Figure 1: Key factor behind enhancement of productivity level of business sector concerned
(Source: Created by Learner)
However, it can be said that it might be often impossible for the business sector concerned get
access to adequate technology helpful in efficient performance of the business related activity
undertaken. As opined by Abdulai et al. (2015), this might be either owing to insufficient
availability of financial resources on part of the organisation to adopt the required technology or
in case the organisation concerned bear lack of knowledge about availability of such a
technology. Prevalence of such issues on part of the firms might tend to hamper the level of
productivity and as a result their profit margin level. On other hand, lack of skill on part of the
employees associated with the business sector concerned to make use of the newly emerged
technologies or machines at the time of involvement in various business activities can be
regarded as another major issue (Noor et al. 2015).
Associated Issues Remedy
Improper access to newly emerged technology Adoption of technology or recruitment of
people that can help access information about
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HighlevelefficiencyonpartofemployeesAdoptionofadequatetechnologyEnhancementofproductivitylevelofbusinesssectorconcerned

newly emerged technologies within the
market structure.
Insufficient financial resources Keeping aside financial resources helpful for
the business sector concerned to adopt
technology as per requirement.
Prevalence of less skilful workers Adequate training and development sessions
to update the skill level of workers in relation
to technology.
Table 1: Issues associated with adoption of technology and its associated remedies
(Source: Created by Learner)
Such issues can be overcome through undertaking the process of adoption of technologies that
can help the firms obtain adequate knowledge or details about prevalence of advanced
technology within the existing market structure. In addition, adequate initiative on part of the
business sector concerned to conduct training and development sessions that can help all its
existing employees remain technically updated can help to a great extent in this regard. As
opined by Zhang et al. (2014), this is largely guided by the fact that technical up gradation would
help the employees easily adapt themselves to make use of the brand new technology adopted by
the business sector concerned. It is to be noted that lack of training in case of adequate
implementation of technology might create a level of efficiency on part of the workers to carry
out the allotted business related activities effectively. This, as a result, might tend to affect the
productivity level of the business sector concerned thereby affecting the level of revenue earned.
Usage of GIS technology in case of smooth performance of real estate market can be a sole
example in this regard. This is mainly guided by the fact that adoption of GIS in case of the
organisations associated with real estate market assists in locating places suitable for
construction. This also helps in getting access to adequate data. This tends to play a vital role in
case of obtaining idea about the kind of resources useful for smooth undertaking of construction
activity within the selected area (Steinberg and Steinberg, 2015). Besides this, it is also to be
noted that GIS plays an active role in case of helping the organisations associated with real estate
get an idea about the employment status of people dwelling within the economy at large (Been et
al. 2016). This, in a way, helps the organisations concerned get adequate access to number of
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workers required to carry out all its planned manufacturing process. Exact location of
construction sites followed by proper availability of required labour force play an important role
in case of helping the organisations concerned maintain its level of productivity in accordance to
the planning activity undertaken. This contributes to enhancement of growth of the organisation
concerned as a result of gradual increase in profit margin.
Briefly elaborate potential implications of GIS technology on the overall
economy
Economic developers are required to take into consideration effective tools related to decision
making for the sole purpose of making informed decisions based on various new business related
activities planned to be undertaken. As mentioned by Xu and Li (2014), it is the implementation
of GIS technology that helps in effective and powerful delivery of functionalities helpful for
economic developers to sustain growth and economic recovery. GIS tools are highly capable of
providing necessary platform for collaboration, analysis, modelling and visualization. It has been
observed that GIS technology tends to benefit the overall economy by helping it get a presumed
idea about emergence of some sudden violent storm. Violent storms usually lead to excessive
erosion which tends to affect the farmers of the economy by degrading their level of agricultural
productivity. Focus on this fact helps the farmers’ concerned take preventive measures from
beforehand which thereby help them exit a situation of loss.
In opinion of Ajayi et al. (2015), this plays a vital role in case of maintenance of stability of the
economy concerned owing to the fact that loss incurred on part of the farmers tends to put a lot
of stress in case of adequate supply chain management of crops. This tends to affect the health
condition of people dwelling within the economy and affect the overall growth of the economy
as a result of insufficient supply of food from the farmers’ end. Such poor level of performance
on part of the economy is bound to affect the profitability level of various sectors of the economy
and hamper its GDP level. This is mainly guided by the fact that under performance of one of the
sectors of the economy is bound to affect the performance level of other sectors which tends to
reduce the purchasing power level available in hands of people of the economy. The sectors
facing degradation in level of productivity as a result of improper health condition is likely to
affect the productivity level of business sector concerned. This result in termination of
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employees on part of the business sector concerned for the sole purpose of avoiding a situation of
loss (Irwin et al. 2014). This, thereby, tends to play a major role in curtailing the level of level of
demand on part of the customers targeted by different sectors and contract the economic
condition of the concerned economy as a result.
Besides this, prime focus can also be given in case of ability of GIS technology to estimate the
rate of unemployment prevalent within the structure of the economy at large since it provides a
brief idea about the employment status of people dwelling within the society along with their age
level (Brown et al. 2014). This, in a way, helps the government of the economy concerned carry
out all its employment generation activities based on the level of unemployment prevalent. This
is highly important in case ensuring growth level of the concerned economy in the near future
and thereby maintain or enhance its productivity level. In addition, proper estimation of
unemployment rate can also help the government concerned conduct a survey upon the
unemployed people. As opined by Orford (2017), this would help the government get to know
the exact reason behind such rate of unemployment prevalent within the economy concerned
which, thereby, would help the concerned government authority organise adequate training and
development sessions highly required to upgrade the skill level or knowledge of the prevalent
unemployed mass. This is mainly guided by the fact that such training and developments can
help such unemployed mass to a great extent to get access to newly generated employment
opportunities (Bramley and Watkins, 2016). To sum up, the implications of GIS technology is
provided in a tabular format below:
Implication of GIS Technology Advantages
Forecasting of storms or any erosional activity
within the environment
● Helps the farmers of the economy take
preventive measures from beforehand
which thereby help them exit a
situation of loss
● This forecasting helps in prevention of
degradation of various productive
activities undertaken by the
organisation concerned through the
process of maintenance of proper
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health condition of the people of the
economy.
Estimation of unemployment rate of the
economy concerned
● Proper estimation of unemployment
rate is of great help on part of
government of the economy concerned
to design adequate employment
opportunities for the sole motive of
curbing the unemployment rate if
required (Nichols, 2015).
● Help the government sector of the
concerned economy get an idea of
exact reason behind prevalence of
unemployment mass within structure
of the economy concerned.
Table 2: Various implications of GIS technology and its associated advantages
(Source: Created by Learner)
Conclusion
It can be concluded that adoption of adequate technology as per requirement is found to help the
organisation concerned maintain its overall supply chain in a proper manner by enhancing its
level of productivity efficiently as per the level of demand existent within prevalent market
structure of the economy concerned. The level of skill possessed by workers of the economy is
found to play a crucial role in this case. This is owing to the fact that efficient utilisation of the
adopted technologies depends largely on capability of workers to use them in proper manner that
can help improve productivity level of the sector concerned. It has been noted that adoption of
GIS in case of the organisations associated with real estate market becomes highly helpful in
case of locating places suitable for construction. This is important for the sole purpose of
maintaining the supply of houses as per prevalent demand level. In addition, capability of GIS
technology to detect storms from beforehand or provide information based on employment status
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of people dwelling within the economy concerned is found to help the overall economy
undertake various remedial measures from beforehand. Such prediction is found to be highly
beneficial in case of smooth performance of the economy concerned thereby assisting in
enhancement of its level of growth and productivity as a result.
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Reference List
Books
Abdulai, R.T., Obeng-Odoom, F., Ochieng, E. and Maliene, V. eds., (2015). Real Estate,
Construction and Economic Development in Emerging Market Economies. London: Routledge.
Orford, S., (2017). Valuing the built environment: GIS and house price analysis. London:
Routledge.
Steinberg, S.L. and Steinberg, S.J., (2015). GIS research methods: incorporating spatial
perspectives. New York: Esri Press.
Journals
Ajayi, M.T.A., Nuhu, M.B., Bello, M.Z., Shuaib, S.I., Owoyele, G., Onuigbo, I., Babalol, A. and
Alias, A., (2015). A GIS BASED ASSESSMENT OF THE RELATIONSHIP BETWEEN
HOUSING CONDITIONS AND RENTAL VALUE IN GOVERNMENT BUILT HOUSING
ESTATES IN MINNA. Journal of Building Performance, 6(1).
Been, V., Ellen, I.G., Gedal, M., Glaeser, E. and McCabe, B.J., (2016). Preserving history or
restricting development? The heterogeneous effects of historic districts on local housing markets
in New York City. Journal of Urban Economics, 92, pp.16-30.
Bonroy, O. and Constantatos, C., (2014). On the economics of labels: how their introduction
affects the functioning of markets and the welfare of all participants. American Journal of
Agricultural Economics, 97(1), pp.239-259.
Bramley, G. and Watkins, D., (2016). Housebuilding, demographic change and affordability as
outcomes of local planning decisions: Exploring interactions using a sub-regional model of
housing markets in England. Progress in Planning, 104, pp.1-35.
Brown, G., Kelly, M. and Whitall, D., (2014). Which ‘public'? Sampling effects in public
participation GIS (PPGIS) and volunteered geographic information (VGI) systems for public
lands management. Journal of Environmental Planning and Management, 57(2), pp.190-214.
Irwin, E.G., Jeanty, P.W. and Partridge, M.D., (2014). Amenity values versus land constraints:
The spatial effects of natural landscape features on housing values. Land Economics, 90(1),
pp.61-78.
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Nichols, G.L., (2015). Merging Special Collections with GIS Technology to Enhance the User
Experience. School of Information Student Research Journal, 5(2), p.5.
Noor, N.M., Asmawi, M.Z. and Abdullah, A., (2015). Sustainable Urban Regeneration: GIS and
Hedonic Pricing Method in determining the value of green space in housing area. Procedia-
Social and Behavioral Sciences, 170, pp.669-679.
Xu, Z. and Li, Q., (2014). Integrating the empirical models of benchmark land price and GIS
technology for sustainability analysis of urban residential development. Habitat International,
44, pp.79-92.
Zhang, H., Li, Y., Zhang, Y. and Seiler, M., (2014). Improving Real Estate Education through
the Use of Agent-based Participatory Simulations and GIS in an Artificial Housing Market.
Journal of Real Estate Practice and Education, 17(2), pp.125-138.
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