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Revista de Economia Contemporânea

On-line version ISSN 1980-5527


FIGUEIREDO, Ana Tereza Lanna  and  CROCCO, Marco Aurélio. Money as a factor that influences the location of industries. Rev. econ. contemp. [online]. 2012, vol.16, n.3, pp.487-508. ISSN 1980-5527.

The literature of regional economics, historically, has given little attention to money and its role in affecting the dynamics of economy. An important reason for that is the orthodox assumption of neutrality of money assumed by many of the regional economists. If money is neutral in the determination of real income, having no impact at the national level, certainly it will not play any role in the regional level either. In spite of this lack of references, there are a few works on regional economic literature that shows that money is not neutral and has differentiated impacts over space. Although these studies have contributed to the ongoing debate on regional economic literature, we are still far from having a conceptual apparatus that encompasses money as a locational factor. Developing this issue is the aim of this paper.

Keywords : Locational decision; locational factor; money; liquidity; preference; centrality.

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