Perceived Distance and Spatial Interaction

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Abstract
The paper seeks to test the proposition that manufacturers perceive the space within which they operate in behavioural, noneuclidean terms, in terms of ‘hierarchic’ distance, the distance between economic regions within a defined functional hierarchy, rather than in rational, euclidean, cost-distance terms. A hierarchic-distance metric is developed for New Zealand and this is used in an interaction model to predict the pattern of Auckland manufacturers' sales linkages, which are then compared with similar predictions generated from the same interaction model and a linear transportation model employing a cost-distance metric, and the results of all the models are compared with surveyed patterns of sales linkage. The use of the hierarchic metric is found to enhance the explanation of observed patterns of sales linkage, a finding which holds important implications for explanations of the location of economic activity in general.