Spatial discontinuity as a key factor affecting industrial location decisions

Easy access to sources of raw materials and markets is one of the main factors influencing the location of industries. Access is usually expressed in terms of distance and/or transportation cost. Such an approach is suitable for industries located in the mainland but it has certain shortcomings in the case of industries located on islands. The geographical discontinuity of islands and the sense of isolation it creates have a considerable impact on the location decisions of prospective movers. The paper examines various ways in which access to an area may be quantified and included into a general location model applicable to industries located both in the mainland and on islands.