In a globalized world, products are highly mobile. Transportation costs are low, production is no longer determined by natural resources, and, as a result, economic activity is also mobile. Companies choose their location on the basis of multiple criteria in order to maximize their profitability. Infrastructure and geographical proximity to competitors are two important criteria; another criterion is well-educated, highly qualified, and experienced employees, particularly with the ever growing importance of knowledge in informationbased economies. Because companies make decisions about their own locations on the basis of these criteria, economic activity within industrialized countries is not evenly distributed but rather characterized by a high degree of regional agglomeration disparities. These regional agglomerations are not necessarily consistent with national borders or with regions as defined by administrative bodies. Some regions are economically stronger than others, and substantial differences in economic performance can be observed within any particular country.

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G. Schmid (G├╝nther) , J. de Koning (Jaap)
Erasmus University Rotterdam
Dr. A.J. Dur, Prof.dr. G.A. van der Knaap, Prof.dr. K. van Paridon
hdl.handle.net/1765/13753
Erasmus School of Economics

Hilbert, C.A. (2008, November 6). Unemployment, Wages, and the Impact of Active Labour Market Policies in a Regional Perspective. Erasmus University Rotterdam. Retrieved from http://hdl.handle.net/1765/13753