Resource Immobility

Resource immobility refers to the difficulty or cost associated with reallocating resources—such as labor, capital, or natural assets—from one area, industry, or sector to another. This can occur due to factors like specialized skills, geographic distances, or institutional barriers. Because of these challenges, resources tend to stay locked in their current uses, even when market conditions change, potentially causing inefficiencies and economic disparities. Overall, resource immobility helps explain why economic adjustments are often slow and why some regions or industries may experience persistent advantages or disadvantages.