The role of the urban system in a regional government's location policy
AbstractRegional governments carry out a series of plans to attract firms to the area to stimulate the economic activity. The firms which are enticed to locate at the area are selected according to the characteristics of the regional economy. These firms are expected to operate the production processes in harmony with the regionÂfs characteristics and develop sustainably the regionÂfs economy. While the firms that plan to build a new factory select a region in a large geographical area for the new establishment to maximize profits. They compare the regionsÂf characteristics in terms of their own interests and determine the region for the factory. It is important for both regional governments and firms to understand the social and economic characteristics of regions and their comparative advantages. Present paper, first, examines the process of the location decision-making of a firm in these days in which economic globalization is common. It is theoretically elucidated in this examination why the characteristics of regional economy play an important role in a firmÂfs decision-making on the location of a factory. And then, using the empirical analysis of the relationships between Japanese regional economies and urban systems laid in the regions, the paper shows that the structure of urban system influences the regionÂfs social and economic performances. It is concluded from the analysis that the urban systems laid on the regions should be paid more attention by both regional governments and firms because the urban system is related with social and economic achievements in a region and it influences the profit level of the firms and the regionÂfs power to attract firms to the area. Keywords: Urban system, Firm's location, Social health, Chaotic phenomenon Second best location, Prospective area JEL:R30
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa12p43.
Date of creation: Oct 2012
Date of revision:
Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org
Find related papers by JEL classification:
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).
If references are entirely missing, you can add them using this form.