Review of the Literature on Determinants of the Locational Attractiveness of Regions

  • Adam A. AmbroziakEmail author
Part of the Contributions to Economics book series (CE)


The aim of this chapter is to review the literature devoted to factors which attract or discourage entrepreneurs to invest in different locations. The first part of the chapter presents different concepts and definitions of regions. This is followed by a presentation of the classic theories concerning the location of business activities in regions, ranging from Hume and Weber through Marshall, Alonso, Chinitz, Tiebout, Isard, Perroux and Lösch, and concluding with Myrdal, Kaldor and Hoover. Then the chapter focuses crucially on different concepts of modern location factors. This leads to an examination of the theory of agglomeration economies, as developed by Krugman and others, including Castells’ space of flows. Moreover transport infrastructure and issues concerning other factors of production, including innovations and new technologies as well as labour market issues are also discussed. The last part of the chapter is dedicated to institutional aspects and behavioural perspectives, which are of great importance to entrepreneurs seeking optimal investment locations.

The text is a review of the literature of distinguished researchers, supplemented by some of the author’s own critical remarks and opinions. In order to ensure clarity, thematic unity, precision and correct presentation of various approaches to the location of industries, the chapter has been prepared using original statements, phrases and combinations of words from over 100 original publications (articles in journals and chapters in books).


Transport Cost Location Factor Knowledge Spillover Location Decision Trade Cost 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



The author wishes to thank two referees: Professor Jacek Szlachta, Collegium of the Economic Analysis, Warsaw School of Economics for his helpful comments; and Professor John B. Parr, Department of Urban Studies, University of Glasgow, for his constructive suggestions on earlier version of this paper and discussions during the author’s research visit at the University of Glasgow within the Dekaban-Liddle Senior Fellowship in 2013. Special thanks are due to: Professor Elżbieta Kawecka-Wyrzykowska, Jean Monnet Chair of European Integration, Warsaw School of Economics, Marek Tabor, Director of the Department of the Committee for European Affairs, Ministry of Foreign Affairs, and the author's wife Agnes and son Alex, whose personal sacrifices enabled the author to participate in the aforementioned Fellowship.


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© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.Jean Monnet Chair of European Integration, Collegium of World EconomyWarsaw School of EconomicsWarsawPoland

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