Introduction

The core model of geographical economics has been introduced, explained, and extended in chapters 3 and 4 of this book. In our analysis of various applications in chapters 5 to 11, we have typically investigated relatively small modifications of the core model, notably only those affecting the cost function and thus the production structure of the core model. This has been done on purpose: not just for didactic reasons (each time returning to the familiar ground of the core model), but also to demonstrate that (seemingly) small changes in the core model can drastically increase its applicability and have interesting and sometimes far-reaching consequences. In our discussions of these adaptations of the core model one important question has been unduly neglected, however: what on balance are the strong and weak points of geographical economics? What is the verdict on geographical economics after its introduction in 1991?

The closing chapter of this book therefore deals with the criticism and value added of geographical economics. This is, inevitably, a subjective undertaking, but it gives us the opportunity to express our own views on the advantages and disadvantages of geographical economics. We are now in a position to evaluate the contribution of geographical economics to understanding the location of economic activity. We start with some of the main criticisms in section 12.2, and then react to these criticisms in the next section. In doing so, we clarify our own position.