The impact of transportation networks on the location of human activit
ies is a surprisingly neglected topic In economic geography. Using the
simple plant location problem, this paper investigates such an impact
in the case of a few idealized networks. It is seen that a grid netwo
rk tends to foster a dispersed pattern of activities, while the center
of a radial network acts as an attractor. The case of two economies c
haracterized by different network configurations that form a custom un
ion is then analyzed. It is shown that the structural properties of th
e networks still hold, though some locations are pulled toward the com
mon border This suggests that no such relocation should be expected wi
thin the European Union if the stare members endorse similar fiscal an
d social policies after the formation of the single market.