Survey of empirical literature

Abstract

In general, firms aim at maximising profits, therefore firms will choose a location which maximises locational net benefits. These in turn are composed ofgeographical benefits —i.e. benefits deriving from the quality of the site in terms of inputs endowment, costs and consumers location (i.e. the spatial distribution of demand)— andagglomeration benefits(i.e. benefits deriving from the location of other firms in the same site).