In this paper we examine geographical proximity from the perspective of network theory. Much of the literature on proximity economics has been concerned with not just geographic proximity but also organizational proximity. The latter concept draws on the literature on social networks and in particular the idea of embeddedness of economic actors within a network of social relations. The newer economic analysis of networks extends social network theory to develop formal tools for network analysis that allow the study of proximity effects that go beyond linear concepts of geographic proximity defined as distance. Instead proximity can be approached in terms of network topology. In a network proximity is not well captured by geographic distance, rather concepts such as centrality, centralization and clustering are important dimensions of proximity. The paper examines how the topology of networks may influence local economic development by conducting a network analysis of transportation infrastructure and examining econome trically the relationship between key statistics of network topology, e.g. centrality, clustering and other statistics and key indicators of local economic development. A case study of Poitou-Charente in France is conducted in which the four departments of Charente, Charente-Maritime, Deux-Sévres and Vienne are compared using data from the Institut national de la statistique et des études économiques. Network statistics each capturing different dimensions of proximity are calculated using Pajek for each department as well as the region as a whole and compared between departments. An econometric analysis of the impact of network topology on key indicators of local economic development is conducted.
