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The Locational Criteria of Footloose Firms: A Formal Model

Author

Listed:
  • Ralph C. Allen

    (Valdosta State College)

  • Jack H. Stone

    (Spelman College)

Abstract

A footloose industry was defined originally by William Alonso and Edgar Hoover as an industry for which transport costs are relatively unimportant.The purpose of this paper is to develop a formal model of a footloose firm, and to use this model to analyze the conditions that establish transport footlooseness and the location orientation of the firm. Using this model, the paper also will investigate the mechanisms that Alonso and others suggested would create footlooseness.

Suggested Citation

  • Ralph C. Allen & Jack H. Stone, 1989. "The Locational Criteria of Footloose Firms: A Formal Model," The Review of Regional Studies, Southern Regional Science Association, vol. 19(2), pages 13-17, Spring.
  • Handle: RePEc:rre:publsh:v19:y:1989:i:2:p:13-17
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    References listed on IDEAS

    as
    1. William J. Kahley, 1986. "What`s behind patterns of state job growth?," Economic Review, Federal Reserve Bank of Atlanta, issue May, pages 4-18.
    2. Frances P. Ruane, 1987. "Spatial Bias and the Location of Footloose Industry: A Simple Regional Model," Canadian Journal of Economics, Canadian Economics Association, vol. 20(3), pages 506-518, August.
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