Their topics include externalities and the public good character of land use, classical and modern
location theories of the firm, new economic geography: the core-periphery model, regional disparities, and inter-regional equilibrium.
The peculiarities of each region to generate agglomeration and development were the principles of
location theories. This approach created a more macroeconomic and macro-territorial approach with a view on the behaviors of the economic actors in terms of location choices, productive and innovative capacity, competitiveness, and relations with the local system and the rest of the world.
Then we review the principles of agglomeration and industrial
location theories and discuss their applicability to auto production siting decisions.
Theoretical Background to Assess the
Location TheoriesLocation theories concentrate on finding factors that determine a favorable investment climate and business environment.
At the very outset, the industrial
location theories were developed with the motive of profit maximization approach by economists-who tried to integrate industrial locations with the 'theory of firms', later on, due to multiple links and operations of industry, the planners and geographers also joined in the debate on industrial location (Glasson, 1992).
Among the topics are land use theory, classical and modern
location theories of the firm, location of the consumer, regional disparities, inter-regional trade, relations between and within regions, the transportation and migration of firms, and inter-regional equilibrium.
There are some traditional components in
location theories. Thunen (1826) identified 'transportation costs' and 'time' as the most important factors that determine location.
Such theories can be broadly divided into two categories: gender role socialisation theories, and structural
location theories. Gender role socialisation theories begin not from individual differences in the psychological experiences of males and females but from the differences in their social experiences.
In order to understand shopping centre development better it is of use to examine retail
location theories. Researchers in retailing have long stressed the importance of good store location [26-28].
A pinpointing of its meaning calls for reexamination of the economic
location theories that underpin the case for free trade and also for consideration of the question of a level playing field for whom.
