What are the main determinants of industrial location?
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T H E E U R O P E A N S P A T I A L E C O N O M Y E C 5 5 5 What are the main determinants of industrial location? Introduction The last years have seen a strong increase in the study of industrial location and economic geography. The deepening economic integration within so called tax and customs unions such as the European Union has fuelled new interest in the field of industrial location. The fact that industrial production has a tendency to agglomerate in central regions has been a major concern to policy makers not just within the EU. Recent findings by researchers such as Fujita, Krugman and Venables (1999) identifying new modelling tricks to compare industrial organizations, international trade and economic growth more accurately has led to an increasing number of studies being conducted. The Three Main Schools of Industrial location Developments of the...

