Spatial Bias and the Location of Footloose Industry: A Simple Regional Model

Frances Ruane ()

Canadian Journal of Economics, 1987, vol. 20, issue 3, 506-18

Abstract: This paper develops a simple regional model to analyze the spatial consequences of sectoral policies. The model focuses o n the regional specificity and footlooseness of different sectors, an d shows that any policy which alters the balance between sectors in a n economy inevitably alters the distribution of economic activities a cross regions. This is true even when the effect of policy is to expa nd a sector in which production units are completely footloose.

Date: 1987
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