Location Based Approaches to Local Economic Development

Sometimes it is necessary in Local Economic Development to work on the problems related to locating or re-locating an industrial plant or firm. The appropriate placement of a firm, so as to maximize its profitability, while at the same time addressing a host of other concerns, is a complex task, and is now computer assisted in a variety of ways.

Sometimes, it is necessary to perform the same sort of analysis as part of a trouble shooting task on behalf of a firm or even a region which seeks to assess its options or enable corporate relationships to be established or continue amongst them, to everybody's mutual benefit.

The original approach to resolving location question was based on a cost minimization and profit maximization model. Other factors have been added in this initial conceptualization, particularly after computer models emerged which could handle large amounts of variables, then those variables over time rather than static "snapshot" sense.>

This section of the site introduces the original transportation cost model, then goes on to indicate how other variables have been added in to make the tool even more robust.

Location and space therories

• Transportation cost model
• Production Costs Models
• Inertia
• Coevolutionary development
• Agglomeration Economics
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navigation

• To Top of -- Two Senses of Location Based Approaches to Local Economic Development
• To Top of -- Local Economic Development Section
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Supplemental Material

John P. Blair-author-bio
Robert Primus- author-center
Primus- Regional Ec. Dev. course outline
Primus Loc'n Theory course outline
Study Guide to Location Chapter