Historical Development of Location Theory and a Systematic Literature Review

This study presents the models and approaches in location theory and reviews the previous studies conducted within the relevant literature. Our main purpose is to compare and discuss different approaches to location theory and, hence, evaluate the development process of the theory. We begin by explaining the models and approaches developed within the framework of location theory. Subsequently, we review the literature. In the first step of the literature review, we perform a bibliographic analysis using keyword data downloaded from the Web of Science database. The data set covers keywords that are most commonly used in a total of 6,081 scientific documents of different types published between 1979 and 2024. We then create a bibliographic network map using this data and the VOSviewer software tool. In the second step of the literature review, we discuss the studies specifically focused on firm location. Hence, we refer to the factors affecting the firm's location and relocation and categorise them as either a firm- or a region-specific factor. The study demonstrates how approaches to location theory evolve over time, influenced by each other and the economic and social conditions of the age in which they developed. The theory continues to develop gradually, even though it generally focuses on the effects of agglomeration economies and transport costs on location choice. Therefore, we hope that this study will both provide a holistic perspective on the development process of location theory and be useful in terms of regional development plans and policy practices.