Geoscience Reference
In-Depth Information
Location and Space-Economy After Half a Century
Nearly half a century has passed since the late Professor Isard published his
seminal work,
Location and Space-Economy
, which provided the theoretical
basis for a new field called regional science. This fascinating topic aimed at
nothing less than initiating the development of a
general theory of location
and space-economy
, embracing the total spatial array of economic activities.
His basic ideas on the general theory of location and space-economy are
summarized in Chap. 2, emphasizing the following three points (pp. 53-54):
First,
“the
then
prevailing
paradigm of
general
equilibrium
analyses
based on perfect competition is not comprehensive enough to
incorporate the particular effects of transport and spatial costs on the distri-
bution of economic activities in space.” Second, “because of the monopoly
elements which are almost invariably present in spatial relations, a broadly
defined
general theory of monopolistic competition
can be conceived as
identical with the general theory of location and space-economy.” Third,
“the
evolutionary approach
of Weber and others
...
should be helpful in
suggesting lines along which this general theory may be nurtured to embody
dynamic relations.”
What remarkable insights these are nearly 50 years ago! Since then, as we
know, location theory and spatial economics, including the so-called new
economic geography initiated in the early 1990s, have progressed largely
along the lines suggested by Isard.
Location and Space-Economy
is a topic that fascinates everybody with the
author's noble mission to reclaim space as a core element of economic
analysis, but it is never easy to comprehend the real meaning of what is
written in each condensed page and in each long footnote. What one learns
from reading the topic depends on the types of questions one asks and on how
deeply one poses them. In this respect,
Location and Space-Economy
reminds
me of a famous Zen garden in Kyoto.
Masahisa Fujita, Konan University, and Research Institute of Economy,
Trade and Industry, Kyoto, Japan
...
1.4
The Broader Spatial Context
Regional science has found its genesis in the awareness that a thorough understand-
ing of the complex space-economy needs a multidimensional analytical approach in
which various disciplines are merged, or at least related to each other. In the early
writings of Isard, we come across the recognition that the physical geography of a
region (e.g., lakes, mountains) exerts a critical influence on its efficiency or
productivity, due to its impact on transport friction costs. The step from physical
geography to the environment in a broader sense then seemed a plausible one [see
