Urban and regional development theory is largely rooted in explanations based on the location, agglomeration and organisation of firms, industries and capital. Contemporary economic geography theory, however, is moving towards a (re)turn to addressing the role of human behaviour in determining urban and regional development outcomes. This article focuses on the concepts of culture, personality psychology and agency in order to understand how these behavioural factors interact and result in development differentials across cities and regions. It is proposed that psychocultural behavioural patterns provide a basis for understanding the type and nature of human agency within cities and regions. Furthermore, it is argued that such agency is based on a rationality that is spatially bounded, and intrinsically linked to the nature, source and evolution of institutions and power. It is concluded that the integration of human behavioural aspects into urban and regional development theory offers significant potential for exploring and explaining long-term evolutionary patterns of development.
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