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Relocation of economic activities traditionally located in the Copenhagen area
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Relocation of economic activities traditionally located in the Copenhagen area

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The purpose of this study is to analyse the factors which influence the location of economic activities which are typically concentrated in the Copenhagen region. Although there has been a substantial growth in manufacturing employment in the underdeveloped regions, this development has almost exclusively taken place in labour-intensive low-wage branches, which mainly employ unskilled workers. It is also characteristic that the management and the research and development departments of the firms often remain located in the metropolitan area. In order to reduce this unbalanced development in the peripheral regions, a substantial part of the economic activities that today are concentrated in the major cities must be moved to the peripheral regions in order to shift the balance. A regional policy must be developed to induce this development. However, such a policy could not be allowed in cases where the economic viability of the activities in question would be endangered, because a metropolitan location is a sine qua non condition for their existence. Classical location theory does not enable the policy-maker to distinguish with sufficient accuracy between policies that can safely be carried out and policies that may seriously hamper the activities in question. It is therefore extremely important to obtain research information that can improve the basis for policy-making in this field.
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