Oedzge Atzema, Ton van Rietbergen, Jan Lambooy and Sjef van Hoof - Dynamics in economic geography

4

An institutional approach to location choice

73

4.1 Introduction

73 74 77 81 84 86 87

4.2 Institutions, rules of the economic game

4.3 Transaction costs, a key aspect of institutional economics

4.4 Institutions and location choice

4.4.1 Institutions and foreign direct investment (FDI)

4.4.2 Institutions and industrial relocation

4.5 Conclusion

5

An evolutionary approach to location choice

89

5.1 Introduction

89 90 97

5.2 New business activity: Chance and agglomeration

5.3 Conclusion

Classical regional growth theory: The importance of measurability

6

99

6.1 Introduction

99 99

6.2 Mercantilism: The colonial gold rush 6.3 Adam Smith, the father of classical economics 6.3.1 Ricardo’s theory of comparative advantage

100 101 103 105 107 111 114 115

6.4 Basic and non-basic economic activity

6.5 Classical and neoclassical growth theory: Criticism and adjustments 6.6 A revival of classical economics: Porter’s competitive forces theory

6.7 Comparing nations and regions

6.8 A critical look at the competitiveness index

6.9 Conclusion

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Place for sale: Attracting visitors, businessmen and residents

117

7.1 Introduction

117 117 118 120 122 124

7.2 Mass migration and day-trippers

7.3 Place marketing

7.4 The role of geography in place marketing 7.5 Place marketing in the Netherlands 7.6 The hunt for bohemians, biomedics and brainiacs