Alfred Weber Model Theory

8/10/2019 Alfred Weber Model Theory

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C o n p r c d w i t h t h e 3ill0unt of con ccrn di sp la ye d by economist :; ovcr

.-

t h vroo, ~ : ~f t ime ~ i c i h e d ; i n ; i ~ - i c s f economic theo ry, rc l -a t i v ? i j .

l i i t l e l - ~ s een s a i d on t h e econon ics of sp7cc . Work on l o c a t i o z

L - - q ~ 7 rI . L I has 'oecn d i sc on t i nu ous a l th oug h in e r e has been sone:iha-l o f a

s p u r t i n t h e l a s t d ec ad e o r s o w hich c an ne rh ap s be r e l a t e d t o t h e

c o n c u ~ r e n t r o w t h f r e g i on a l s c ie n ce .

3 a r l i c r works on l o c a t i o n a n a l y s i s t en de d t o a pp l y t h e n s e l v e s t o

~ivl.;.,, ; cxpl a n a t i o n s t o i l i s t o r i c a l . t r e n d s . Th i s pape r j.s by no near,:;

a s ur v ey of a l l t h e l i t e r a t u r e i n t h e f i e l d and i t s r e s t r i c t e d b a s i s

s t h e 1 ;or4 by Alf r ed Weber e n t i t l e d Ueber e n Stan r lo r t er

I n d x c ~ r i c n u bl is he d i n 1909. T h i s s p er ha ps t h e most i n t e r e s t i n g

o f t h e c l a s s i c a l l o c a t i o n a n a l ys e s b ot h n t s depth and scope. t

t h e same t h e , t i s t p i c a l i n i t s c on cer n w i th h i s t o r i c a l

e xp er ie nc e, p z r t i c u l a r l y i n t s s e a r ch f o r t h e c a us es o f t h e g r e s t

l o c a t i o n a l s h i f t s of i n d u s t r i e s i n t h e p er i od o f t h e European

i n d u s t r i a l r e vo l ut i on s .

I n - o r e r e c e n t w r i t i n g s Weber must b e o ne o f t h e x o s t c i t e d

c l a s s i c e l . : ~ o r k s . t t h e s arr~e i n e , t h e c u r s o r y t r e a t m e n t h e r e c e l v e s

p e r h a p does him l e s s t h an j u s t i c e. I n t h i s p a pe r some p a i n s a r e

t a k e n t o o rg a n i s e t h e n o r e i m p o r t a n t a s p e c t s o f F J eb er ls t h o u g h t :ihici?,

t i s be l ie v ed , h as s o xe v a lu e i n i t s own r i g h t . A f t e r a s h o r t

i n t r o d u c t i o n , S e c t i o n 2 co ns id e r s I t? eber 1s a n a l y t i c a l f ra m e ~r o rk . T h i s

s f o l l a i e d i n t h e ne x t t h r e e s e c t i o n s by a tr e at m e nt o f h i s

c a t e g o r i e s o f l o c a t i o n a l f o r c e s which may a t t r a c t i n d u s t r y . I n d u s t r y,

i n e f f e c t , may b e t r a n s p o r t - o r i e n t e d , l a bo u r- o ri e nt e d o r a t t r a c t e d

t o s o c i a l and i n d u s t r i a l a g ~ ; l o ne r a t i on s . S e ct i on 6 c o n t a i ~ s n

e;:a-ple of hc1,kr Veb er app l- ie d h i s t h e o r y . T h i s shou ld pe rhaps he l ?

i l l u r z i n z i t e t h e t h eo r y ' s va lu e i n Weber 1s own c on t e x t .


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3 ~~jl; , ,S?O~~T;2~~:;\jTA~lO~,i,

I; LAYOUR OHlZidTA'1'ION.

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A(>~LO~.~;~ATION.

TIT A?PLICATIOI4 OF' JEi;i3312 S THXOEY OF IIiDUSTKIAL LOCATION.

n7 . I %O-' .EE3T;IAIJ CONT213UYION.

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: 1 o c ~ ~ t i o r ; ~ lorcc l l i n ~ r z n .

2: The Att rnc i ; io r, o f Lzbour L o c ~ t i i o n s .

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f nodern w r i t i n g s on l o c a t i o n tn e o r y a r e t o b c t a k e n as a ~ u i d e ,,

. h i s f A l f r c u c r u l o i i ~ o t h e rc nl ms o f a n t i q u i t y.Fur t :lc r, t h e au th or of t h e Thcor;l/ of thc 1,ocnii.on o f 1 ~ d : i s t r i c s lr:.r-

b e i m g i n e d t o be of t h c c r u i c p io n ee r in g t y p e - w ork in g w i t h s h ~ d d yt o o l s a nd g r e a t p e r s ev e r a nc e . T hi s l a s t a t t r i b u t e w i l l always, of

cou rse, be admired. But a t t h e s ame t ime f rom th e s t andp o in t o f

l a t t e r - d a y i n t e l l e c t u a l s o p h i s t i c a t i o n su ch c l a s s i c , p i on e er in g

e x e r c i s e s h av e a t e nd en cy t o b e r e g ar d cd a s r a t h e r t e d i o u s .

T h i s i n ~ e r p r e t a t i o n f t h e v a l u e o f Web erts work m ig ht b e n i s -

l e a d i n g . F or w it h o ut a d o ub t We be rl s a n a l y t i c a l t o o l s a nd t h e

r e s ~ i t i n g nsights , which he achieves, have a somewhat modern

f l a v o u r t o t hem e s p e c i a l l y when a p p l i e d t o t h e f i e l d o f econornic

h i s t o r y. I n f a c t , it ivil-1 b e a rg ue d i n a l a t e r s e c t i o n 2 t h a t Web er rs

a n a l y s i s o f t h e g r e a t l o c a t i o n a l s h i f t s which c h a r a c t e r i s e t h e

i n c u s 2 r i a l r e v o l u t i o n i n n i n e t e e n t h -c e n t u r y Europe, was h a l f a

c e ~ t u r y head of i t s t i n e .

On t h e ot h e r hand, i t would seem th a t t h e qu es t i on s which t o -day

occu?y t h e a t t e n t i o n of l o c a t i o n a n a l y s t s w ere o f much l e s s s i g n i f i -

canc e t o :deLer. Lb'sch, f o r example, a sks: Given (n-1) lo c at io ns , how

d o we d e t e r m i ne t h e n t h l o c a t i o n ? Th i s i s t h e f o r mu l a ti o n o f t h e4 5prob lem ~ i i i i c h s a rd and Hoover a l s o adop t . And from such a s t a r t i n g

Wejer, Ueber den S t a n d ~ r t e r I n d u s t r i e n ( ~ G b i n ~ e n , 909 ) . Bng l i sht r a n s l a t i o n w i t h i n t r o d u c t i o n and x o t e s b y C . J. Fr i ed r i ch , A l f r ed i de 's er ls

Theo ry o f t he Loca t ion 1 In du s t r i e s (Ch icago: U n iv e r s i t y o f Ch icagoP r e s s , 1929) .

' see be lou , s e c t i o n 6 p. 2 3

A. Lb'sch, G e Econ- .~ s o T.ocntior.. (New York: John U i l e y Sons, Inc ., 1952 .,

C.J. I s t r d l . .ocntior. sxd Space. .Economy (Cambridge, l a ss ac hu s et ts : Has snch unet tsIn s t i z u t e o f Technology, 1956 ) .

IE Boover, J r Loca t ion Theo ry and t h e Shoe and Lea thc r I n d u s t ~ y Cnrh ridge ,p a s sachuset ts : Mzssachusc t t s I n s t i t u t e o f Technology P re s s , 1937 ) a d

7

L Soover, Jr, The L o c a ti on o f Economic Ac t i v i t y (New York: l4cGrat.r H i l l1948) .


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p o i ~ t t i s o c l y s h o r t s t e p i n t o t h e m i c ro - e co ~ o s ic f i e l d of

o p e r s t i o x s ~ e s c a r c h o s ee k w i t h r e s p e c t t o l o c a t i o n some s e t of

c r i t e r i a o f p r o f i t a b i l i t y f o r t h e i n d iv i d ua l p roduccr . t ~ i o u l d o t

b e s c p r i ; i n ~ ~ h e n , if t h e Y l c ~ e r i a n r am ew ork v lerc t o f a l l 5hor.c i n

answel- t t h i s t y p e o f q u e st i o n.

Sucil r e f l e c t i o n s s u g z e s t t h a t t h e p r e s e n t p a p er b e d i v i d e d into

two ma in pa r t s . n e a r l c r s e c t i o n s Weberian l o c a t i o n a n a l y s i s b r i l l

b e d e v el o 3e d J al wa ys k e ep in g i n mind t h e s p e c i f i c l o c a t i o n p r o b l e . ~ s

wh ich s eemed o f most i n t e r e s t t o ldeber h imse l f . t a l a t e r s t a g e

r e c c x t a t t e s p t s t o r e f o r m u l a t e t h e Weberian h y po t he s es c a n b e d e a l t

w it h. With r e s pe c t t o t h i s l a s t p o i n t i t w i l l b e a d v a n c e d t h a t

d e s n i ~ e i g n i f i c a n t o u tp o ur in g s o f l i t e r a t u r e on t h e econor-Acs of

l o c a t i o n i n t h e p a s t two d ec ad es and d e s p i t e a s u r f e i t o f w hat Leon

Moses c a l l s I f e s o t e r i c p a r a p h e r n a l ia t 1 t h e i n t e g r a t i o n o f l o c a t i o n t h e o r y

w i t h g e n e r a l p r o d u c ti o n t h e o r y h a s p r oc ee de d a t a f a i r l y s lo w p ac e.

unm ary, t h e o b j e c t i v e of t h i s p a p e r i s t o a s s e s s t h e work o f

A lf re d Weber a f t e r s k t y y e a r s o f f u r t h e r d e v e lo ~ m e nt n t h e t h e o r y of

i n d u s t r i a l l o c a t i o n . IhJith t h e s e t e rm s of r e f e r e n c e i n nir.d t h e f i r s t

s t e p . ;ill b e t o r e v i e t r e ac h s t a g e of 1 - le b er ts t h e o r y a g a i n s t t h e b ack -

g ro un d o f h i s a n a l y t i c a l fr am ew or k.

6 ~ .:cse;, L oca t i on and t h e Theo ry o f P rod uc t i o nJ H Qu a r t e r l y J o u r n ~ lof Eco nox ics, Vol. LXXII (195 8) , pp. 2 5 9 7 2 .


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T h e e ~ a - o n i c nd non-econcm ic v c r i z b l c s d e t c r x i n i n g t h e l o c a t i o n

of an in c i ~ s t r y ay seem t o fo rm a ne ixrork of complex, d i ve r s e e l e nen t s ,

o f t e n , i n i n d i v i d u a l i n s t a nc e s , s o a r b i t r a r i l y conposed t h a t t h e r e

a p pe a r s t o S e no p l a c e f o r n o r e t h a n a n a n a l y s i s of t h e i n d i v i d u a l c s s e ,

I f we a p pr oa ch t h e i n d i v i d u a l m a n uf a c tu r er w i t h a q u e s t i o nc o nc e rn in g t h e c h o i c e o f h i s l o c a t i o n , h e w i l l a t most g i v e u sq c a i n t c o n co t io n of g e n e r a l and p a r t i c u l a r r e z s o n s , u n l e s s he~ o i n t s o t h e p a s t and s a y s: 1 an h e r e b c c a u s e t h i s i n d u s t r y gre7;i

p h e r e . 7Nonet l- ie le ss , accord ing t o Idcbcr, sone a t t c np t t o d i sco ver g ene ra l

f o rn u la s l o r t h e s o l u t io n of t h e d i f f e r e n t l o c a t i o n a l f a c t o r s and t o

z s c e r t a i n t h e i r o ? e r a t i o n a l l i m i t s i s a b s o l u t e l y n e c e s s a r y f rom t h e

point of view of economic theory.---- I t i s a p i t y t h a t a n e co no mi st of t h e s t a t u r e o f A l f r e d $Tar sh al l

d i d n o t s h a r e Ke be r s v iews on t he a pprop ia tenes s of a na lys i ng space

econoaics. i s c o nt e nt i on t h a t I ft he i n f l u e nc e of t i n e gsln o r e f u z d a n e n t a l t h a n t h a t o f s p a c e " has been a ma jo r fo rce , acc ord ins

t o i s a r d , f o r t h e s t a t e of im ba la nce e x h i bi t e d by l a t e r B r i t i s h and U.S.

e c o nc n i st s . wh o , f o r t h e most p a r t , h av e a b s t r a c t e d f ro m s p a ce and t h u s

c o n d u c t ' a l l t h e i r economic t h e o r i e s a s i f in 1a'wonderland of no

s p a t i o i d i n e n ~ i o n s . ~ t ~ r e a c t i on a g ai n s t t h i s s t a t e of a f f a i r s ha s

i n e - r i t a b k 7 c one a b o u t w i t h some s i g n i f i c a n t , a t t e m p t s t o i n t r o d u c e s p a c e

a s a v a r i a b l e i n g e ne r a l e q a i l i b r i u n a na l ys i s . Under these C ~ ~ C L ~ I

s ta n c e s t h e e a r l i e r work of Al fr ed Meber can now command some

8A . . P r i n c i 2 l e s of ?iconom& (London: 14a cni lla nJ 19 20) ,

2002 V. ch. X V S e c t i o n 1.

9 ~ s a r d , on. ci t . , pp. 2 : 3 .


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r e - c x a x i c a t i o n .

2.2 he Te r r ~ s of Xcfercrice sf Weberrs Pure Theory o f 'iAocatlo i. 1 0

i iu L b .li e e d o r a ?enera . t l l co ry o f f r l o ca t i on a l f a c t o r c , I 1

i.lhic l c;n b e d e f i n e d s a d v a n t a ~ c s o 5 c o b ta in ed when xi ecar:or:ic

a c t i v i t y tal cc s p l a c e a-i; one p oin t, rc;i;kicr th a n c1.se.1.~-:.:ere, h e n the

r s r i ~ a r y ~ c s ~ i o n o be asltcd i s Are there any i l ;er ierai causes of

lo ca t lo r ; winich concern every inc lus t ry? I f we know th e se we ar e ab le t o

i n q u i r e ho:r f ~ r h e o r i e i l t a t i o n of i n d u s t r y c an b e e x p l a i n ed by t h e c .

Kext, by a s c e r t a i n i n s f u r t h e r f a c t s , w can inves t iga te t he oa r t i cu1 .3 r

causes o f t h e phenonena no t exp l a ined by t h e pene ra l . f a c t o r s . Thcse

c a u s es r.ust b e e x pl a in e d b y t h e s p c c i f i c c h a r a c t e r i s t i c s o f p a r t i c u l z r

i n d u s ~ r i e s nd a r e n ot r ec og ni se d i n advance bu t o nl y t h r o u ~ h a r t i c ~ l a r

i n v e s t i g a t i o n s . I n s h o r t , a g e fi e ra l t h e o r y c an o n l y b e e xn ec tc d i o

t a k e a cc cu nt o f g en er al l o c a t i o n a l f a c t o r s . The f i r s t s t e p , t h e n , i s

t o e n a ~ e r a t e h e g en e r al f a c t o r s i n q ue st i o n.

The gen e-a1 l o c a t i o n a l f a c t o r s c an be r eg ar de d a s f a l l i n f ; i z ~ t o

tvro su3 -cc t cco r i e s . I n t h e Ti r s t p lac e , t h e d imension o f space

i n t r c d u c e s f a c t o r s w hich p u l l an i n d u s t r y t o and f r o b ec au se o f v a r i o u s

r e i7 l o n al l y o p e r a t i n g v a r i a b l e s . T h re e s uc h v a r i a b l e s c an b e d i s t i n g u i s h e d :

s r e k a t i v e " p 5 c e s r t of d cp .o si t s of raw ~ a t e r i a l s ,

( i i ) t h e c o s t s o f tr anspor tat id ;')

and ( i i l ) t h e c o s t s of l a bo ur .1 2

f t h e se , t h e r e l a t i v e p r i c e d i f f e r e n t i a l of raw m a t e r i a l s f r o n v a r i o u s

s o u r c e s c an b e e x pr e ss e d i n t e r ms o f t r a n s p o r t a t i o n c o s t s . F or

t h e o r c t i e a l p u r p o s e s i t i s e q u i v a l e n t t o t h i n k i n g i n t er m s of l lc h ea p lr

': eber, on. c i t . , pp. 18-40.

Atzos?h er ic humidi ty, Por example, would be a l o c a t i o n a ld i se d va n ta g e f o r a v er y p a r t i c u l a r s e t o f i n d u s t r i e s .

12 The qdes t i o n has been r a i s ed a s t o ;::?ether t h i s i s , in f a c t ,p u r e l y a r eg io na ll y o ? t r z ~ i n ~ a c t o r . Se e I s a r d , on2--c~., p. 25.


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dc?osi i ;s s l t ~ a t e d c i .a t i. ve ly nea r t o t h e p l an t and dear f1 a c p o s i t s-.

f x r t l l c r a:Jay Consccpcritly, 1e can ~rorlc wi th two cencrc l , rc : ; io r, , i~ ;r.

n r c r \ - K - i o c : : t i o ~ n l f a c t o r s , n arlclg t h e c o s t s of t r a n s p o r t a t i o n

2x2 ;i;c c d s t s of l a b o n r. l3 3 c i : l ~ s i r : ic t ly 3 fur.c i ion of space ,

r c ; i an z l f a c t o r s c an a 11 b e ar ia iy sc d f ro m t h e p o i n t o i v ie w o f t k e

IndLv iducl , i :;ol+a tcd pro duc t io n proce ss .4

l l t k c o t he r f a c t o r s of 1-ocakion work bet7;reen in d u s t r ie s ar,d

t h e r e f o r e a r e n o t t o be f ou nd i n an y e:ccmination of a n i s o l a t e d

p r o d u c ti o n p r o ce s s. They a r c gro up cd t o g e t h e r u r ~ d e r h e t i t l e

~ f a ~ ~ ; l o n e r ~ ; i v ca c t o r s t t and trork t o c r e a t c g ro up in gs o f i n d u s t r i a l

. r? roces sc s i n agg lomera t i ons o f va r io us s i z e s agglornera- li ons which

a r e ~ o t s c r i b ed t o r e g io n 2 1 f a c t o r s . l The aggregate of7

a ,~~3.o: .:el -a tive a c t o r s i s trea-Led a s a " u n i f o r m a g g l o n e r a t i c g f o r c e . :I

T h i s i s t h e t h i r d and l a s t o f t h e ge ne ra T l o c a t i o n a l f a c t o r s .

On th e se found ai io ns it s now n o s s i b l e t o c o n s t r u c t a n e n t i r e

a b s t r c c t t h eo r y of g e n e r al l o c a t i o n a l f a c t o r s .

2.3 Procedure of Analys is .1 7

s t a r t i s made by a ss un in g t h a t a l l i s o l a t e d p r o ce ss es of

p r o d u c t l o 2 w i l l a t f i r s t be p ul le d t o t h e i r o p t i ~ , a l o i n t s of

t r a n s p o r t a t i o n c o s t s . T h i s c a n b e r e g a rd e d a s a b a s i c n e tw or k o f

i n d ~ s t r i a l o c a t i o n o r o r i e n t e t i o n . On t o p o f t h i s , t h en , a p p a r e nt l y

t h e d i f i e r e n c e s of c o s t s o f l a b o u r ( t h e seco nd l o c a t i o n a l f a c t o r ).

l3we5er, op . c i t . , p. 34

1 L ~ * ~ e 3 e r s o f t e n a c c us ed of o m i t t i n g t h i s i n t e rd e p en d e nc e f a c t o r .

151 ., a g g l o n e r a t i o n s which a r e n o t l a b o u r o r t r a n s p o r t o r i e n t e d .

" ~ e b e r , on. c i t . , p. 35.


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r e ? r i 3 s e n t a f o r c e a l te r i n : ; t h e i n i t i a l . n e t w o rk d e t e r n i n e 6 by t h e l s t

l o c a t i o n a l f a c t o r . T he n o s t a d v m t a ~ c o u s l a c e s of l a b o u r c o s t s c r e a t eI I F . - A J ~,-,- d i s t o r t i o z l t o f th b a s i c t r a n s p o r t n t i o n a l n e tw o rk of i n d u s t r i a l

i o ~ a t l o - . L a s t l y e v e r y a g ;l oi ?. cr at in g t e n d e n c y in o t h e r 7 .-io ra s t i - ee q t e

.LA g ro u ? o f a 1 1 o t h e r l o c a i l o n a l f a c t o r s x h i c h h av e n o t s o f r

b e e n t a l i e n i ~ t oc c o u n t - i s n o t h in g b u t a s ec on d a l t e r i n g f o r c e

c o z p e t in g w i t h t h e o t h e r tw o l o c a t i o n a l f a c t o r s .


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3 1 I n t r o d u c t i o n .

Ir h i s s e c t i o n t h n a j o r a s s ~ ~ r. ~ : ~ t i . o n s t h a t no o t n e r f a c t o r

a f i ' e c t s l o c a t i o n a p a r t f rom t r a n s p o r t a t i o n c o s t s and t h e pr obl em t o be

so lved s simply: How w i l l t r a n s p o r t a t i o n c o s t s i n f l u e n ce t h e l o c a t i o n

of in du s t ry ? The answer Xebe r g ive s i s t h a t an i n d u s t r y w i l l

move t o t h e p o i n t i i ne r e t s t r a n s p o r t a t i o n c o s t s a r e minimized.

3 2 'Theore t ica l Sol .u t ion .

We nay conce ive movement a s be ing made up of t h r e e se pa ra te

components:

( i ) t h e d i s t a n c e t o b e moved,

( i i ) t h e w ei gh t o f t h e m a t e r i a l i n p u t s a nd w t p u t s t o b e moved,

and i i i ) h e H e f P o r t f l r c o s t s of moving gi v e n m a t e r i a l s o v e r u ~ t

d i s t a n c e .18

l t i e b e r l s t h e o r e t i c a l d i s c u s s i o n s based on t h e a ssvmption t h a t a l l

f a c t o r s a f f e c t i n g t r a n s p o r t a t i o n c o s t s ca n b e ex pr es se d in e i t h e r w ei ph tr d i s t a n c e u n i t s . l 9 Thus, if t h e f r e i g h t r a t e s v a r y b ec au se o f t h e

v ar y in g c o s t s i nv ol ve d i n t r a n s p o r t i n g d i f f e r e n t p r o d uc t s ( o r even

b ec au se d i f f e r e n t t r a n s p o r t media a r e us ed ) , t h e n a l l t h e s e l o c a l

d i f f e r e n c e s which a r e r e f l e c t e d i n t h e to n- mi le f r e i g h t r a t e ca n b e

e q r e s s e d b y p r ol o ng i ng o r s h o r t e n i n g p r o p o r t i o n a l l y t h e p a r t i c u l a r

d i s t a n c e t o b e moved.20

18 I s a r d , 3 7 c l t . , pp. 81-90.

~ e b c r , -- s c i t . , p . 45

2The p ro bl en o f p r o ~ r e s s i v e l y e c l i n i n g r a t e s w l t h i n c r e a si n g

dis tance of ncu l - t?oc ld b e a~irkward o f i t i n t o t h i s f ra ne tr or k. I-l:or.rever,t h e r e d o es no t s e e n t o be 3n e s s e n t i a l p o i n t h e re .


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',;c'uer r e d i s ed x i n l e s o u r c c s ar,d r.ul . t i ; ) lc d c s t i n a t i o n s t o :. .u

re2szni :~ :: o f i c r s a s o l u t i o n ' to s i . L ua t i o ns vi:j.ll many sources of rai? . ..

7= p u t i Id. 3r :U M ) 3r:d ce n t re s o f p rod uc t.:

c~r;s.il.?.ption C ) . This can b e :+ior .:cc L iirough f o r the s a k e o f ' c o x n i e t e -2

n e s s u s i n g C o t i ; ? r i l l ~ s cxa;n'?le o f a zinc smcl . -Ling i9dustr.y s e t o u t In

Ta b i e I and F i g u r e 1.a.

r

TaSle I Llnc Sne1t ic . i ; Indus 'Lry, Loci t t ional Components .

I s l a b Z i n c

Z l x c Cocc en-t r a t e f l~ l e d u c t i o n Coal 7

2ea:lng Coal X,,F i r e c l a y

Source : C . C o t t e r i l l , O D . c i t .

2C . C o t t e r i l l , I n d u s t r i a l P l an t Lo ca ti on : Its A n nl i ca t io n t o ZjncS*-.el l;? ; S t . L o u i s , 1 9 5 0 ) .


16/46

o u r c e Y i . iaggeAit o c a ti o n a l Anal.y:;is i n iunan G e o , y r a a 1I;~ei.i Lori


17/46

t h e l i n e c rsvin 20 t ic hea 'Lin5 coal . sou rc e a t i s v e r y 1 0 ~ ; ~nldL3

co:;.-. ~:i~lson o t h a t to:r;~rcis t h e i ' ir c c j- s y s o u r c e a t . F i g u r e 1 . c1 s 2~:: 9 i o r c c l.:olicl r cp r c sc n t i n g 1,112 p u l l o f tach ver-ie;r. 0 1 t1.e

loc-t~o~~l yiGLr ;. ' '--.ILL poii l '~ oi' r i inlnun t r a n s p o r t c o s t s i s t k a ipo i i l t where s l l a ~ ~ r a c t i n g o r c e s a r e b a l a n c e d and e q u i l i u r i u r n i s

I..L

o b ~ s i n e i .

I n i; er : :s o f t h e rc la t r' rv c p o s i t i o r i o f ';he optirp-a1 p o i n t x e c ~ a

.-. I7 ,,li,Lo~.er-&: 'i'he l o c a t i o i i w i l l b e n e a r t h e i n d i v i d u a l c o r n e r s o r i r ~ raway L roX them acco rd i l l g . to tihe r c l a t i v e we igh t o f t h e i rl o c a t i o n a l components 23

3.3 Thc C na r a ct e r o f P t i r t i c u l ~ r n d u s t, r ie s a r m ~ r s n r , r ? o r t r i e r t : t c,:.1.

The n ex t ( ;les .i;ion t o b e 'examined he re conc erns how c h a r a c t e r i s - t i c s

o f v a r i ou s h d u s t r i a l p ro ce ss e s w i l l a f f e c t t h e o u tc o xe of t h e i oc e . ti o r .a l

s ~ r u g g l e . To a nd e rs ta n d t h i s more f u l l y t h e f ol10 'i;ing d i s t i n c t i o n s a r e

( a ) between t h e u s e of l oc a l i- sc d ~ ~ a t e r i s l s , ihi .ck are f o u n d I ns p e c i f i c l o c a t i o n s t h u s have t o b c t r;l..:.is po r.ted t o t h e s i t e

of ?reduction a nd u b i q u i t i c s , w hi ch rray b e f o u cd a t anyg e o g r ~ p h i c a ~ o c a t i o n ( e. g. , e a r t h o r w a t e r o v e r large s r e z s )and t ii u s do n o t i n c u r t r a n s p o r t a t i o n c o s J ~ s s r ai ,, ~ l z te r i z> - su u t on t h e o ii he r h an d, may e n t e r i n t o t h e w e i gh t o f t h ef i n a l p r o d u c t .

b ) uetsrecr, t h e us e of nUrC n a tc rL al s , r.:nich do r iot lo s e v : e l ~ h t nt h e ; 3 ro d u c ti o n p r o c e s s arid ~icii.;ht-l-o:;in{; c z t e r i a l s ( e . ~ . f u e l ) .

:Tr a~ 2 c t e r n i n e s h e t r a n s p o r t l o c a t i o n i s t h e r a t i o o f t i i c 7t;clg1it 02

2 2I k e s i q l c s t s o l u ii o ii i s t h a t ~ ir ii cl ; s o l v e s s i r n i l a r p ro ble rn s i n

p ? - ~ s i c s , l .e . , u s i n g v e c t o r a n a l y s i s t o f i n d where t h c f o r c e po ly go ni s t c i o s e d l and a l l 3 r c e s a r e i n ba l a n c e .

See 2 . C a n ~ p be l l, 1 I a t r i c e s , Ve ct ij r s a nd L i n e a r P r o q r a ~ b - i n g 12er.rYcrlc: A? ?le ion , Cen tury, C r o f t s , 1965 , ch. 2.


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u se d i ;; at ey ia ls t o t h e wc ic il t o f p r od u ct b u t r a t h e r t h z t o f t h e w e ig ht

o f u s s a l o c a l i s e d m ai ie ri al u p e r t o n o f p r o d uc t . Tt:is r a t i o r i c ~ t i i l - . . ,L L ~

a s t?. ;ici.Ler.ial nd ex . U ' o i c~ i . t i . cs r e o f i ~: i: io rt an ce o n l y t o t h e. ,c-.--b - l A L tl:;i.t they i z c r e a s c t h e trci;:ht oi' Lhe f i n z l pr0duc.L ariti tkhus tcr,?

t o ncduce -Lhc :rLri-tcrizl Inde:~. Or,c l a s t d c Z i c i t i o n i s i;hat of t h e

locauioinl. i11~ci;7::Clt, l ~ il l el y, t h e t o t a l > i e l ~ h - i o b e moved i n t h e 1oca.i;lc::ai

figure p e r t o n o f p r o d u c t.2 4

Tr an spo r t l o c a t i o n can 11o;f b e seen t o depend on two f a c t o r s t r hl ch

d e t e r ; ~ i n e h e x a - t e r i a l i nd cv and t h e l o c a t i o n a l w ei gh t o f e ve ry i ~ d u s t r y .

One Is t h e s i z e of 2rei;:n-L Losscs o f I - o c al i se d n a t e r l n l s d u r i n g t i le

p r o c es s o f p - o d uc t io n , which i n c r e a s e s t h e m a t e r i a l i n d e x a,?d t e n ds t o

a t i r a c t i n d u s t r y t ow ar ds t h c r aw m a t e r i a l s . The s cco nd f a c t o r i s t h e

:,,-ei;~i:t f t i l e u b i a u i t i e s e n t e r i n g i n t o .the f i n a l p r od u c t , liihich - d i 1 1 s e r v e

t o io:. er t h e m a t e r i a l i n d e x and p u l l i n d u s t r y t o wa rd s t h e p l a c e o f

c o n s u . p t i o n . 25 For example, i n t h e c a s e below, t t b e e r t t h as a low r ~ a t e r i a l

i n d e x b e ca u se o f t h e p r ep o nd e ra n ce o f no n- we ig ht -l os in g u b i q u i t i e s ( i . e . ,

w at e r ) i n i t s p r o d u c t i o n . However, l tzincl t h a s z h i g h m a t e r i a l i n d e x

r el s- Le d t o t h e do mi na nc e of V ~ e i ~ h t - l o s i X g o c a l i s e d m a t e r i a l s i n i t s

p r o d n c t i o n .

TabLe 11. 3 e e r a nd Z i nc - C a l c u l a t i o n of t h e I l a t e r i a l I nd ex .

L oc al -i se d i ~ i a t e r i a l s t o n s ) U b i q u i t i e s 2 p ~e ~ lh r PJe izht - l o s i ng I b r e I J ei , ?h t -lo sing Index

a . p t r t o n9

jf u,',, ; - 0 2 I . - 0.2

b. ? e r tor1p i ZI::C 5 O - - 5 0

2 4 ~ h i : : e ~ u a l ; h c : ( ir ei gb t o f l o c a l i s e d m a t e r ia l s + w e i g h t o f p r o d u c t ) /:.iei;nt o f p r o d u c t ) .

2 5 - -.i n 1 5 caz be t hocgk t of i t e rm s of t h e f o r c e p a t t e r n s i n t r o a u c e ae v i o u s l y.


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;ie can now i n f e r t h e l ol io wi ni ; p r o p o s i t io n s :

Theo--e:r : ll i n d u s t r i e s whose m a ~ e r i a i n d e x i s l e s s t h a n w i l l tentt o l i e a t t h e p o i n t o f c o n s m p l io n .

. .Y::ccr : l l i n a u s i r i e s whose r ~ z t e r . i ~ i r ldex i s g r e a i e r t h ~ , ; i l it e n c t o b e a t t r a c t e d t ow ard s he r a w m a t e r i a l s o u r c e s .

Theol-2::: i; : iXLrc : n s t e r i. a l s c a n ri cv er bir;ci p r o d u c t i o n t o t h e i r d -:jcsits2 s t i c m 3 t e r i a l i n d e x t ii ey c r e a t e i s never r r lore thzn Y

I ; . . a L ~ u 5 : e i g h t - l o s i n g m a t e r i a l may p u l l p ro a u c t io n t o i t s d e p o s i t 2i t s :;lei;l;hc i n t h e p r o c i u c t i o n ~ i r o c e s s s g r e a t e r o r e w z l t c ;t h w e i g h t of t h e p r od u c t p l u s t h e r em a in d cr o f t h e ra wi . . ~ t e r i a i s 26

.:.e h2ve now pr ov id ed a s o l u t i o n t o t r a n s p o r t o r i e n t a t i o n . I t i s

now z e c e ss a r y t o f i n d o u t t o w ha t e x t e n t i n d u s t r i e s w i l l move f r ~ r r

s u c n a -trar.spor-L l o c a t i o n when a r e a l l y d i f f e r e n t i a t e d wage c o s t s a r e

i n t r o d u c e d .

2 6 ~ ~exs-?le of s u c h a n i n d u s t r y would b e t h e p r o d u c t i o n o f s a l t b y t h ee v a ? o r a t l o n o f s e a w a t e r .


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L ab ou r c o s t s c an o n l y b cco ne f a c t o r s i n l o c a t i o n by v a r y i n g f r o x

p i a c e t o p la ce . The a c t u a l l e v e l of th es e c os t s , ~ h c a r t i c u l a r

~ i r c - u ~ s t x i c e s hich ,< iv e r i s e t o the:n and even 1 ,ihe ther th ey a c t ~ a l ~ ;

e x i s t a r e a l l n a t t c r s of complci;e i n d i f f e r e n c e . IJei-i er s p u r e C, r,ecry

c oc ce lv es t h e n a s a l l p o s s i b i l i t y l l and i n v e s t i g a t e s t h e t h e o r e t i c a l

r e s u l t s of t h i s p o ss i bj - l i t y . 7

T hus, l a b o u r c o s t s s r c assumed t o v a r y f ro m p o i n t t o p o i n t wit

e a ch p o i n t c o n s i d e r e d t o b e a l a b o u r l o c a t i o n , :.[hose a t t r a c t i n g power

s b as ed on s uc h d i f f e r e n c e s i n l a b o u r c o s t s . F u r t h e r , t i s neceszaz-:T

t o In;r oduce t h e a t t r a c t i n g power a s a f i x e d q u an t i t y , s o t h z t c a t h-

e r na c i ca i qdan - l i f i c s t i on can p roceed . n t h i s way t h e d i i r e r e n ce s i n

c o s t b e t w e e n l a b o u r l o c a t i o n s a r e t o be rega rded a s I I g i ~ e n , ~ ~ nd a s

g i v e n w i t h u i l i x i t e d a t t r a c t i n g power. I n o t h e r w or ds, e ac h l a b o u r

l o c a t i o n s b l e s s e d w i t h an i n f i u i t e l y e l a s t i c s up pl y of l a bo u r a t a

f i x e d wage r a t e .

Up u n t i l R O W we have been concerned wi th t h e po i n t o f minimum

t r a n s p o r t c o s t s a s d e fi n ed by t h e l o c a t i o n a l f i g u r e of raw m a t e r i a l

sou r c e s and co nsuming ce n t r e s , and t h e m a t e r i a l i ndex . The cp es t l o n

r , o ~ econes: f w h a t s i g n i f i c a n c e i s t t h a t i n t h e i n f i n i t e a r e a

a r o u d t h e t ra n sp o r t - or i en t ed l o c a t i o n t h e r e a r e pe rh ap s p o i n t s a t

which a t o n o f p r o d u c t c a n b e p r o d u c e d w i t h l o w e r l a b o u r c o s t s ?2 8

/ 0 c i t . , p . 97


21/46

The f irs^ tlliri,.: t o n o t e i s th t t h i s i s a n i s s u e of a l t e z i ; , a t i v e s .r 7 I - i s r;o benclit t o the i n d u s ~ l - y 1-i m r e l y s p p r. o z c k i n ~ i le l s c cu r

l o c a t l o r , . t has e i t h e r t o oLove t o t h e I. abour l o c a t i o n o r s t a y r;rhcre

i t i s a t t li e ? o i c t o f n in im un t r a n s p o r t c o s t s .

As eve ry 2argr i. na l de v ia t i on o i t h e i nd us t r l i a l l o ca t i on frorn t he

poin? ; o f ninirxurn t r an sp or t co s t s g i ve s an added co s t i n t e rms o f

1en;;tiicnir:g ro ut es and t h e r e f o r e co st s , w e c a n s t a t e :

Thco-en 5: lo c a t io n can be moved f rom th e po in t of minimum t ra ns po r tc o s ~ s o a m o r e f a v o u r a b l e l a b o u r l o c a t i o n o n l y i f t h es a v i n g s i n t h e c o s t of l a b o u r, w hi ch t h i s new l o c a t i o n makesp o s s i bl e a r e l a r g e r t h a n t h e a d d i t i o n a l c o s t s of t r a n s po r t -a t i o n , w hi ch a r e i nv o lv e d.

ii~ k i s heorem i s i l l u s i r a t e d i n o p e r at i o n by t h e i n t r o d u ct i o r , of

t h e c o n c e p t o f an isodapane, which w e d e f i n e a s a n i ma gi na ry l i n e

j o i n i c g a l l p o i n t s o f e q u a l c o s t of d e v i a t i o n fr om t h e m i n i m ~ l m r a n s -

p o r t p o i n t . Thus, a ro un d t h e minimum t r a n s p o r t l o c a t i o n a r e a s e r i e s

of i sodapanes , t h e va lu e of which i nc re as es outvrarcls.

3 v e r y l a b o u r l o c a t i o n rrus t a l s o l i e on a n i so da p an e o f t h e

r e s i 3 e c t iv e l o c a t i o n a l f i g u r e . T h i s i s od a n an e i n d i c a t e s how h i g h t h e

c o s t s of cov ing t h e i n d u s t r y f rom t h e minimum p o i n t o f t h e l o c a t i o n a l

f i g u r e t o t h e l a b o u r l o c a t i o n would b e. Mow i f t h e i n d e x o f l a b o u r

e c o n o ~ i e s s g r e a t e r t h a n t h e d e v i a t io n c o s t s a s i n d i c a te d by t h e

i so da pa ne s, t h e n t h e i n d u s t r i a l l o c a t i o n w i l l b e moved t o t h e l a b o u r

l o c a t i o n ( s e e F i gu r e 2 ) .


22/46

I s cdapazes a r e drawn a round t h e r ? . in i r~ux r a n s p o r t p o i n t, P ofl o c - t i o n a l t r i a n g l e 5 . i l Z 1 i s a n u n u t i l i s e d raw n a t c - r i al sourceEach bea r s an i ndex 02 dev i a t i on cos t s i ncu r r ed by mov ing away frorn ?.

L acd L2 a r e l a b o u r l o c a t i o n s h a vi ng i n d i c e s o f econony 35 and 603.r e s p e c t i v e l y.

I n t h i s c as e t h e i n du s t ry would move t o L .

4.3 The C h a r a c t e r o f P a r t i c u l a r I n d u s t r i e s and L aS ou r O r i e n t a t i o n .

T he re a r e two g e n e r a l c h a r a c t e r i s t i c s o f i n d u s t r i e s w hich d e t e r n i n e

t h e d e g re e o f a t t r a c t i o n of l a b o u r l o c a t i o n s :

i ) h e i n d e x o f l a b o u r c o s t s ,

i i ) t h e l o c a t i o n a l w eig ht .Ilken t h e i ndex of l ab ou r co s t s , wh ich i s d e f in e d a s t h e a v er a g e

co s t o f l ab ou r wh ich mus t be app l i ed t o a t o n o f p r o d u c t, s l a r g e , a


23/46

l z r ~ e y aa cz it y of l ~ i b o a r o s t s t r l l b e a v a i l a b l e f o r ' co np re s si or,, ; i i t h

corr,-snon25 .ly 1ar:;c po te nJ ii al 3-ndiccz of economy of t h e l a b oa r-1 o c~ t i o: ; s. I n t h i s c a se , l a b o ~ r o ca t; io n tiould ha ve a 'nir$l

pa;cA-ltia1 c l ~ t r a c t l l ? : ; polrcr. SI :.-i.inrly, i n d u s t r i e s wi th a iow index of

:bc~r c o s t s w l l be l c s s s t t r a c t c d t o l a bo ur l o c at i on s .

The l o c a t i o n a l w e ig ht i n f l u e n c e s t h e e x t e n t t o whic h an i n d u s t r y

n a y b e l l d e v i a t e d l t hr ou gh i t s e f f e c t unon t h e d i s t a n c e , and of l e s s e r

imyor tance , t he fo rm of t h e i sodapanes . l ow l o c a t i o n a l w ei gh t, t h a t

i s , a s m a l l m ss of m z t e r i a l p e r t o n of p r od u ct , g i v e s a . w i d e s p a c i n go f i so da pa ri ?s and t h u s a g r e a t e r c h a nc e t h a t t h e i n d u s t r y c an be

od e v i a t ed

Weber connec t s th es e two in f lu enc es by in t rod uc i ng t h e ides of t?.e

l a b o a r c c c f f i c i e n t . T h i s i s gi ve n by t h e amount of la bo ur cos-ts vinich

w i l l a r i s e i n a n i n du s t r y f o r one t o n o l o c a t i o n a l w e ig ht t o be moved

a n d l c a d s t o :P,neor;n : T h e l a b o u r o r i e n t a t i o n o f a n i n d u s t r y i s determined by i t s

l a b o a r c o e f f i c i e n t . 3 1

.kn ex&-,ple s e r v e s t o i l l u s t r a t e t h e o p e r a t i o n a l s i g n i f i c a n c e of i s

theorem rnore fuliy:

3C e r t a i n e n vi r on n en t a l f a c t o r s w l l b e i a p o r t a n t h e r e t o o, e .g. ,

t?,; geo;raphical d is t a n c e between tr a n s p o r t and l a b o u r l o c a t i o n s .

31. T h i s t h e o r e n i s a l s o a f u nc t i on 0 2 f r e i g h t r a t e . From thet a X e 111) i t cen be seen t h a t every r ed uc ti on i n t h e f r e i ~ h t a t ewould i z c r e a s e t h e s p h er e of a t t r a c t i o n o f l a b o u r l o c a t i o n s .


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l d ~ >UT S3vj.r;;.ls a t Fre-ip;llt Ia :ten c (j;Cocfiiciei~i;. L ~ b o u r * YLL LC Pot . : r l t i c l i

labour c o s t Locat ion X. per t o n DcviaJiiori Lolser l o c s t i o n a l 1 ;: o f x i 1 e Labourt o n ) l a b o u r Locat lo-? .

c o s t s .&

9IIILXS

According t o \ leber I t h e e n t i r e - and i r m en s e lg d i f f e r e n t - manner ofo r i e n ~ a t i o r . ~ ~ ~f t h e s e t h r e e i n d u s t r i e s c a n b e e xy l ni n ed by s u ch a

t a b u l a t i o n .

Having determined t h e f a c t o r s d e te rr oi ni ng t h e v ar y in g a t t r a c t i o n s

of a low c o s t l a bo u r s up pl y t o - v a r i o u s i n d u s t r i e s , t h e f i n a l g e n e r a l

l o c a t i o n a i f o r c e c an b e i n t roduced .

( 2 ) CL T;:ING 1500 150 0.5 300

( b ) POTTZRY55 5.5 0.5

( c ) S L A 3 Z I l i C 0.1 c.5 0.2


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I n t r o d u c t i o n .

r: . . . .LI. . seczio:: o l I , cberl s t i i cory li i r a t h e r c r u c i a l i.n c v a l i l ~ - l i ; ; ~ - ls

;silole ag?roach t o 1 oca.i ion Llieory. So Q r tiio fact0r.s have beer.

e:A:a;.:in~d - t h e ' t ra n s po r t f a c i o r arid t l ic labour sup,?ly i 'actor. iiccoraini;t o Veber, t h c s e work r zg io na l ly arid can be an ob j ec t o f ?u re t neo r y

i ~ d e ; c n d e n t of p a r t i c u l a r economic and s o c i a l c o n d i t i o n s . 33 o n t h e

othc: hscd , a l i o t h e r p o s s i b l e ad v an ta g es , which p u l l i n d u s t r y l l h i i h e r

2nd t h i t h e r t t a r c r t s o c i a l o r c u l t u r a l phcnornena, t h e c o n se y u cr ~ c e of

p a r i i c u l s r cc orio nic o r s o c i a l c o n d i ti o n s . l t j 4 F o r ce s a r e s e t u ~ w hi ch

l e a d t o l o c a l ac cu mu la ti on o r d i s t r i b u t i o n of i n d u s t r y. I n ' i ieberian

t e r x t h e s e a r e f o r c e s p ro mo tin g d e g r ee s of e g gl om e ra ti on a nd t k e y

op er a t e o nly wi t h i n t h e f ramework formed by t h e g e n er a l, r e g i o n a l

f a c t o r s . I n sh o r t , we have now t o de a l w i th i n t e rdepen dence o f

a dv an ta ge s a r i s i n g f rom and p r on o ti ng l t s o c i a l c o n ~ e n t r a t i o n . ~ ~

" So ci a l c o r , ~ e n t r a t i o n ~ ~ s r a t h e r a v i t a l c o nc ep t h e re and t h e

s z ne ti m e open t o v a r i o u s i n t e r p r e t a t i o n s . I t w i l l b e a rg ue d h e r e t h a t

t h i s c o nc e ?t s u bs m. es d ena nd f a c t o r s , t h e s p a t i a l s i g n i f i c a n c e o f wh ic h

b e c o s e s c o r e cd more imp ort ant a s economic development proceeds. ?or

among th e f a c t o r s o f agg lomerat i on Weber s t r e s s e s t h a t I 1 soc i al concen-

t r a t i on I1 p roduces economies "because t h e conce n t r a t e d - i n dus t ry pe rmi t s

a l a r g e u n i f i e d m a rk et f o r i t s p r ~ d u c t s . ~ ~ ~ ~hus, t h e r e a r e o f t e n

a dv an ta ge s i n t h e s i z e of t h e m rket and t h e r e l a t i o n o f t h e i n d u s t r i a l

l o c a t i o n w i t h r e s p e c t t o t h e a r e a l form of t h e ma rk et. T re a ti ng t h i s

i n a s ~ i ~ ~ z r ya s h i o n , Weber i n d i c a t e s t h a t t h e s i z e of t h e ma rk et w i l l

3i~ eber, op. c i t . , p. 22.

3kibidp.' 128.


26/46


27/46

-p r o ~ ~ c t . he c;lucs-tio;: v:h? ch ~.t:ur,t be asked i s i r h e t h c r t h e r e exists r c:::.e

COT?,-..cn -.eogra?hica1 a r c a x i- ~ c r e h c : iri.:s c a n ::ct t o 2 e t r. e ~ o i h e t t h e

. . .2as:c. l r tk e 3r;s:;:er i s ~, l l : i t ; i t l ;e 2::oi;;ir;::ncs cnye: :er l t ing 5. ?d e - s ic t i on c o s t s p c r u n i t to o ~ r o d u c - t >:;ed or: ill :I>< 1 j .n tc~ccc+, ,

t h c ~ : , w i t h i r; t h c i n l c r n c c t l o n 1- ie n oi ri ts o f ~ . u t u ; i i e n e f i t t o both

f i r . Thuii, i n P i - a r e 3. a. a , ~ ~ i . o n c m t i o n i l l Onlie p l n c o p r o - i t n l l - 7 ji l l b. i t w i l l n o t .

37 i , e be r s a n a l y s i s xust b e c o n s i t i c r c d as ].on5 run. T h e ~ r o b l e r ; ff ixed c;r ?ital. i ~ v e s - l n e r i t o e s n o t a r i s e .


28/46

5.3 ?'he C11::r;;ct~r or" Part;i cul .;?, r 1ntiu: ;Lrles and A~::lorneratio;.i.

i-?;.o;:;. t h above i t c nn b e d ed uc ed th ri c t h e r e a r e ttzro c n a r a c t c r i s J ~ i c s< ; i Ls .y ics r.rhich : ;ill e . tc rn i l i c i ;hc l r &v-i >. -~ c , k l o n e n d e n c i e s to:s';ir-d~

a g ~ ; l a ~ : ; ~ i - ~ ' ~ i o i ~

1) ile 1oc:itional :.reii;i-it,

( i i ) t h e f u n c ti o n of C C O ~ O C B ( o r b e t t e r , of P r ~ f ' i t a b i l i t Y ) .

The l o c a t i o n a l wci-g ht n ee d n o t t a k e u p a ny -o r e s p a c e h e r e t h z n s

need ed t o c o t e t i ia t , a s i n t h e l a b o u r l o c a t i o n a n a l y s i s , i t i s t l i i s

f a c t o r i.:F~ich d e t e r x i n e s t h e s p a c e o f .bile i s o d a r ~ a n e s i d t h u s t i l e l i k e l i -

hosd o l t h e i r i n t e r s e e t i o r . . g e o g r ap h i c ni f a c t o r i zn po rt an t h e r e , s l s o ,

~ ~ r l l ~


29/46

no: ;::s:ltion t h i s C Pcr;lzps i f we wcre f o r cc d t o l i o k 2cr

a ? ~ l o s i c s , then sn i;fiportan-L f a c t 1;iould bc that cnss -produced cccsx::r

, -o=ts I f i r e r : ~ ~ r e l . t y n 1:e:)er's d::y. t 1 e a s - i ~ i;ey had net d ~ v c l . o p. I . . . . .12 b: - i c -L&iciz;g sec ' ior i:i C C G ~ O ~ C l e ~ ~ l ~ p : , l ~ ~ tf cuv jliccci cukyi L, ACS

..is tA ;cy . 0 t iJeYb3- ,n-lel. .->.- i was in j; -:e ic2di;?:i r-c,c.t--..-.

i i

.in -;kc 1::.2u~ ~r121 c v ~ ? i u l i ~ r i n L ~ r o p c . r. t h e nir :eteent l l c e n t u r y.

TI- z;c vrcre ?I-edor~. inan'l;ly. , e s p c c i a l . 1 y o u ' i s id e B r i t a i n , t h e c a i ~ i t z l

g o o d v i n d i l s t r i e s . Tlie v i t a l f a c t o r of consumer demand i s o b v i o u s l y

o f l e s s i mp or t he re .


30/46

. eb el- n:ajor i n t e r e s t xi s cconomic h i s to ry. olume TITO o f t h e

T . . 2 l o c a t i o n a l ch:ingcs i n G erm an y's i .n du st;r y b et we cn 1 ~ 6 0 nd 199xi2vsr ap;>eared. iov;cver, t h e a im of t h e th eo ry s c l e a r , na me ly, t o

a m vi e r t h e q u e s t i o n : What c a u s e s i n d u s t r y t o c h an ge i t s l o c a t i o n ?

IJeber ts answer i s t h a t l o ca t i o n changes wi th econorc ic development

b e c a u s e t h p r o c es s of economic d ev elo pm en t a l t e ~ s h e f o r c e o f

i n d i v i d u a l l c ~ c a t i o n a l a c t o r s . $loreover, s i n c e a i l t h e f a c t o r s xhic 'r,

d e 2 ~ e r m i n e o c a t i o n c s n b e c l a s s i f i e d u nd er o ne of t h e t h r e e br oad

l o c z t i o n a l - f o r c e h ea di ng s of t r a n s p o r t , l a b o u r and a g g l o n er a t i o n , t h e

w ha le 0 2 t h e l o c a t i o n s i d e of cconorn ic h i s to ry i s t o b e v i e~ r ed a s ana t t e a p i t o move t o a nelvr e q u i l i b r i u m a s t h e f o r c e s o f t h e v a r i o u s

l o c z t i o n a l f a c t o r s c hange f o r i n d i v i d u a l i n d u s t r i e s , making t h e o l d

e q u i l i b r i . ~ ~ a r t l y i r r a t i o n a l .

. . . e ac h p a r t i c l e o f i n d u s t r i a l p r o d u c ti o n which moves t o ac e r t a i n p i a ce u nd er t h e i n f l u e n c e of l o c a t i o n a l f a c t o r s c r e z t e sa nel,,I d i s t r i b u t i o n o f consu ii .p tion on accoun t o f t n e l a bo ur whichi c e np lo ys a t t s new l o c a t i o n , a nd t h i s may become t h e b a s i s f o r

f u r t h e r r e gr o cp in g s . . 38I n a h i s t o r i c a l s e t t i n g , t h e r e f o r e , we can a n a ly s e s t r u c t u r a l c ha cg esi n i c d u s t r y , t h e g ro wth of some i n d u s t r i a l l o c a t i o n s a nd t h e d e c l i n e o f

o t h e r s . The p r e s e n t r e f l e c t s t h e p a s t c h a r a c t e r o f a r e g i o n . T h i s , f o r

Weber, i s what l o c e t i o n t h e o r y and r e g i o n a l s t u d i e s a r e a l l ab ou t.

i n h i s a n a l y s i s of t h e d e c l i n e o f r u r a l ha r id i cr a ft and o t h e r

n ei gh bo ur ho oc i n d u s t r i e s we a r e a b l e t o s e e t h e k in d o f a p p l i c a t i o n

wh ich Webcr saw f o r h i s t h e o r e t i c a l c o n s t r u c t s . T h i s s u b j e c t , p u t i n t o

a b ro ad h i s t o r i c a l c o n t e x t, c an be a n al y s ed u nd er e a ch of t h e t h r e e

?

~ ~ 1 . ~ e b e r ,p. ci - t , , p. 213.


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i o c a t i o : ~ a l o rc e h e ~ c i i n ~ s o i 1 l . u s t r a t e t h e e:;tcn-t t o ~ i i r i ch uc ?~

r :e rcilli; co:l.cei:t:l-a.Lim 2 go;.~uj.a-L ion lnu Lhc rapici tcchriicaZ-bs\~clo-;r::ect ~,.;i-Lh t s lacchanissi ; ior, of produciion and i t s t r z r x i k i o n

o tl ? use of rylei cli oi;h .Lci:iit:d i o d e s - t r o p t i l e c o n d i t i o f i ; l;icii >Led.,-irsv:;iled G-; t o t ila: th-iie, t h c cc nd lt io r: t h a t inciu:;.Lri;l Loczt;sn,L f c i r 2s i t ':,ras detel-;nined by t r c i n s p o r t a t i o n , c o i n c i d e d 7 ri.tht h e $aces of con sw; ~p t io r~ . T hi s r e x c v a l o f - th e l o c ~ t i o n i"In~ ; ; s - t r i a ] . p roduc t ion f rom t h e p l a c e s of c o n s l i ~ ~ ~ p t i o r , r p l l c d t h edec,.>.,., - , cl ~ io n of t h e c r a f t s , f o r the c r a f t s p re su pp os ed t h a ti n d u s . t r i a 1 l o c a t i o n a nd t h e p l a c e o f c on su mp ti on c o i n c i d e d ,3 9t k i c e v i t z b l e c o l l a p s e of t h i s ki nd o f i n d u s t r i a l o rg a ri i sa t lo n .

3 u t , t h e d e c l in e of h a n d ic r a f t s can a l s o b e viewec ~ i t h e s p e c t t o

t h e a t t r a c t i o n of l a bo u r l o c a t i o n s . T h i s d e c l i n e :

. wz h as be ne d by t h e f a c t t h a t h e r a i l ~ l r z y s a c i l i - c a t c d ;hedev , i o n of i n d u s t r y t o wa r ds t h e m ost i' av ou ra bl c l a b o u r l o c ~ t i o n s .L oc 21 i n d i c e s 01 l a b o u r c o s t s , t h e d i i l " e r e n c e s i n 1,ihich . . kaa3 e ~ n Lc, ,- v c i i c d . oy c o s t s of Lra nsp orb aiio n, bcca~:;:es u d c i c n l y a ~ ; ~ a r c n C nd of p r a c t i c a l s i g n i f i c a n c e linen r a i lr r a y r c t e sb eg an t o d e c l i n e r a ?i d ly. 40

La s t ly , a ;o"ier :;ay t o v ie id i x d u s t r i a l deve lopnen t i s a s a

g i g a n t i c p r o ce s s o f a s g l o ~ . ~ e r a t i o n :

Tor a l l i ~ d u s - t r i e s h e d is c ov e ry of t h e f a c t t h a t t h e i r i c d e x ofm z m f a c t u r e v;as c a p a b l e of g r e a t r e d u c t i o r ~ w i t h i n new, h i g h l ydeve loped frane~:ior


32/46

, .~ ~ i . t l ~ ~ ~k z j ~ ? ~: J ~ b c r l ~i ;heory - to be i r i e i' 1 i cicn-L be cau se t h e r e i:~; o;3e y ie c t co r r. el ak io r1 bct :.~ec fi t i l e ; : ; a t e r i a l indei : an6 t h e i f i c i u s t r i z l .

' '8

~ ~ ; . ~ a t l o : . i r agglornera,~.i .ve a c l . o r s a r c ~ 0 . l ; oi ng t o cic';er-

m i n e l o c r c i o l l s s in :: ly, e x c e ; x rill ex t re rL ie c a s e s , i s e x p l i c i t i n Xeber .

Cor.,plex i r i t c r a c t i o n o f I,he t h r e e l o c a t i o n a l f j c t o r s w i l l b c t h e :;osl;

l i k e l y p r o b a b i l i t y p r e s e r ~ t n a h o s t of intermediate c a s e s . 7Jc;Se-re

t h e o r y , t o r e p e a t , i s n o t a t r a n s p o r t - o r i e n t a t i o n d o g m a b u t a n

a t t e x p z :

. . O d i s e n t a a g l e t h e k n o t o f c a u s e s , w h ic h co nP i- on ts u sevcryvfiici-e i n r e a l i t y , an d t o i s o l a t e an d g ro up t h e e l e ~ e n t sc o z p o s i n g L 3

U n i s w ou ld o n l y b e o n e a s p e c t o f critic is ^ t h a t a

d e f c l i d e r o f t Je 5e r wo ul d h a v e t o o v er co me a n d t h e x o r c b a s i c a t t a c k s

on h i s s e t h od o l og y w i l l n ee d t o b e h an dl ed s e p a ra t e l y .

42;i. Sxith, Tile L o c a t i o n o f I n d u ~ t r y , ~ i l s t i t ~ t c f B r i t i s h Gco-rs :~ ' : e~s ,Vol. 3 1 ( 1 9 5 5 ) , pp 1-18.


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i SG X d e a l a; t h e w r i i ; i ~ ~ : ; r ; ocritf on ccon oni cs post-l;eber 1-33

becn I'rtr:ed i terr;.s of a c r i t i q u e o f t h e VJebcrian a n a l y s i s . Err t, i n

z os ; I r i s t f , ~ c c s , h e s e c o n t r i b u t i - o n s c a nn o t b e view ed a s much x o r e t t i n

a r i g o r o u s r c s t a t e n e n t o f A l f r e d VJebcr's p o s i t i o n .

7.2 The Coi? t r i bu t i on of Au,?us4i [,o:;ch.

The a a j o r e f f o r t o f August ~ 6 s c h s d i r e c t e d t o t h e p r o bl en o f4-/:l-.ether t i s p o s s i b l e t o work t h r o u z h t o a n o p ti m a l s o l u t i o n t o bne

q u e s t i o n o f l o c a t i o n by me=s of a s e r i e s o f p a r t i a l s o l u t i o n s . In

p a r t l c u l z r , h e shor.rs t h a t " i f va r j . ab i l i . t y i n demand i s t a k e n i n t o

a c co u nt a l l o f We be rl s c o n s t r u c t i o n s on t h e s u p p l y s i d e be co ze

- e s n i n ~ l e s s . 5 However, t o r e l a t e t h e n a t u r e o f t h i s p r o b le n s o l e l y

t o t h e f a c t t h a t Xeber s u pp os ed ly o m it t ed t o a n a l y s e demand s e e m t o b e

a l i t t i e rride o f f t h c mark. I n t h e f i r s t p la ce , t h e d i f f i c u l t i e s brhFch

a r e s a i d t o b e i n h e r e n t i n t h e l o c a t i o n p r ob l en when denand i s i c t r o -

duccc a r e a l s o p r e s e n t w i t h i n t h e c o n f i n e s o f t h e s u p p l y s i d e talcen b ~

i t s e l f . If w e r et -ar n t o o u r l o c a t i o n a l F i g u r e 2 on page 1 5 t z1 1t

ha- re been noted t h a t t h e move sugg es t ed by economies of l zb ou r c o s t s L O

C O L L ~ ~a s i l y ha ve a l t e r e d t h e w ho le n a t u r e o l: t h e l o c a t i o r , Z i gu r eL2by o?cxini: up a new s o u r c e o f r aw m a t e r i a l s ( e. g, , a t ?JT; . econaiy,

6

dez1ar.d co u ld b e i n t ro duce d i n t o t h e ex i s t i ng f r a ii ework o f t h e

p r o b l e x if i t can be assumed t o b e f i x e d i n s p a c e and o v e r t i m e . I f

4 k 6 s c t J on. c i t . ;

4 5 Ibid. p. 28.


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t h i s :.rerc th c a s e , t h e n t h e l o c a t i o n a l i'i,:ure t e c h n i q u e v i t h l ie i qi ?t ed

v c I , ~ ~ c e s. r s n r e s e n t i n g u e xz nd p o l e s a s rireli a s t h o s e r e p r e s e n t i n g r a l : i

o a t e r i a l s p o l e s c o u ld b e r e l i e d upon t o comc up w i th a s o l u t i o n ,

-..

i ' sxs , zke probier. , libL- h T k c k t hT.3 vi.s::: l.i sed , docs r, o t st? :

f r o - m y o x ~ - i _ s s + ~ ~f a n a l y s i s of cicm3nd s z u c h b ut f r o n t;hc s t ~ i 5 . c

n a t u r c cf t h e ? ct ho d of a n a l y s i s . And i f t i n e i s a l l o wed t o e ~ t e r

t h e p ic t- ar e, t he n , t h e c on c l us i on s , which ~ 8 s c h r r i v e s a t , a r e s t i 1 . l-

v a l i d . in s h o r t , un der su ch c i r c u m ~ t a n c e s ~ ~ t h e r e s n o s c i e f i t i f i c and

u ne qu iv oc al s o l u t i o n f o r t h e l o c a t i o n of t h e i n d i v i d u a l f i r n . 11b

7.3 T h e C o n t r i b u t i o n o f Wa l t e r I s n r d . LC /

I s a r d ' s c o n t r ib u t i o n s t o t h e e co co ni cs o f l o c a t i o n c e r t a i n l y f c l l

i n t o t h e c s t e q o r y of r i g o r o u s r e s ta t e rn c n t. The n o v e l ty o f t h i s a n t h o r l s

a p a r o a c h l i e s i n t h e e mp ha si s o n f a c t o r s w hi ch Weber s e e m i n g l y n e g l e c t e d .

One x a j o r c o n t e n t i o n i s t h a t t h e s p ac e e ccn on y i s n o t a s c on ti n uo u s a s

lTeber1s s i n ~ i i f y i n g s s u mp t io n s n i g h t i mp ly. T r a n s n o rt a t i on n o s t

o b v i o u s l y i s n o t p h y s i c a l l y c o n ti n u ou s and t h i s , a l o n g w i t h v a r yi n g

t r a r L s? o r % a t e s , t op o gr ap h y, t h e p r e s e n c e o f j u n c t i o n a n d t r a n s s h i p m e r t

p o i n t s : s i l l b q o s e i n p o r t a n t d i s c o n t i n u i t i e s and d i s t o r t i o n s . Because

i s a r d b e l ie v e s s u ch v a r i a b l e s t o be s i g n i f i c a n t , " on ly w d e r s e v e re

l i m i t a t i o n s , If h e f e e l s , l i s F Je berian d o c t r i n e g e n e r a l l y a p p l i c z b l e . I t

Part lcalar l j . , VTeber s r e l i a n c e on t e c h n i c a l f a c t o r d r e d u c i ng a r rh ol e

h o s t o f rninor b u t d i s t i n c t c con om ic v a r i a b l e s t o u n i t s o f w e iz h t a nd

d i s t a r ~ c e i s t o o i n h i b i t i n g f o r I s a r d . " U lt i ma t el y a l l s uc h e n p i r i c a l ,

t e c h - i c a l f u n c t i o n a l o b s e r v a t i o n s must b e t r a n s l a t e d i n t o e co no ni c

t e m s . flig S uch r e f i nemen t i s o ne o f I s a r d t s more s i g n i f i c a n t

l~ 3 i < . , . 36 f o c t n o t e 3'7. An in te re st i r ,? . ; empir ica1l ;r-oricntec? s t ud yttc:.:?ristng t o i r , t e i ~ r a t e h e c or n pl cx i ty o f r e a l - w o rl d f r e i g h t - r n t e

s t r - ~ c t - d r e e nd t h e f l qu a l .i t gl l , f t r a n s p o r t a t i o i ? r r i t h r ai i ~ a t e r i n . c o s - 5 ~.

x .;CI LC~ f a c t o r s c a n b e f ou nd i n Ii Fu l ton and L Hoch, Illi'ranc.;ort-a t i o n F a c t o r s a f f e c t i r q L o c a t i o n a l D e c i s i on s J 1 I Economic Ge o< yranh y,Vol. X X X V (1959)~ p. 51.


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ac:?icve:i:cni;s.

I-io~rever, p e r h a ps t h e n o s t i r n : ~ o ~ t a r , t i r :c o f t ho u, zh t i n I s a r d i s

h i s i n t r o d u c t i o n i n t o I.oc:lt ion t h e o r y of t h e n n a l y t i c a l c c n c ep t s o f

s-Lbs-kik-dtion as found i l l p r ~ d . ~ c t i o n h e o r y. S u b s t i ". u t i o n b e ' i t .~ e ~ f i

d i f 'erer.-k L r an s po r i ; e : c? er,d i tu re s o n r a w n a t e r i a l s , b et v ie en t h e s e

. ~ ~ ~ . . . ? o r - L. e x ~ e a d i ~ u r e s n d i ~ ~ " 11 o b i l c abour costs , and bet1; :een a i l S Z ~

e x p e ~ i i t u r e s m a s h in p i- n g e xp en di - Lu re s o n t h e f i i l a l p r od u ct a r e 211

e:.;plored t o n o v e t h e P J e be r ia n fr anel 21or k t o w a r d s s y n t h e s i s w i t h

o r t h o d o x e c o n o m i c t h e o r y.

o ~ e css Imnor-t,rint, ri - i c i s n s .

few l e s s 1, i e l l - founded c r i t l c i s r ~ s i ~ ; i t b e i n t r o d uc cd a t t h i s

s t a s e co c ce r ni n g t h e lerqd-iasis" 02 t h e d e b e r i a n a n a l ~ s i s .

B ot h I s n r d a n d i G s c h h o v e t a k e n Weber t o t a s k f o r d o- .m plnj .ing

d e r m d f a c - c o r s . So f a r t ie ha ve s u g ge st ed t h a t s uc h a n o v e r s i e h t n i ~ h t

noL h a v e t h e d r a m a t i c c o n s c q ue n c e s f i r s t i a a g i n e d . But, t i s p o s s i S i e

t o go n z ch f u r t h e r t h a n t h i s , t o s u e z e s t t h a t denand f a c t o r s a r e a l r e a d y

c o n t a i n e d i n ; l eb er s f r a ~ e w o r k n d er t h e b r o a d e r h e a d i n g of a ,~ gl or r, er a-

t i v e f a c t o r s . The r ea s on s f o r some de -empha si s l i e i n t h e f a c t t h a t

iIeSerls : :as inureu t h e o r y and t h a t h e b r a s c o n c e r n e d o ~ l y i t h t h e

c o n c e p ~ u z l o s s i b i l i t y o f ag gl or fi er at iv e f a c t o r s . TJJe a r e n o t c o n c e r ~ e d

v i t k whys and r ~h er e l ' or e s, w i t h t h e x u l t i t u d e o f i t e m s t h a t n a y c o - 2 o se

t h e 1 '1t ri f~m a g ~ l o m e r a t i v e a c t o r , ' o r e v en vr he th er i t e x l s t s in t h e

r e a l ;:orld, l l t h a t m a t t e r s i s t h a t - th er e i s a c o n ce p t u a l p o s s i b i l i t y

t h a t firrr s c a n d e r i v e a d v a n ta g es t h r o ug h s o c i a l and i n d u s t r i a l c onceL-

t r a t i o n . T h i s p o s s i b i l i t y i s a l l t h a t m a t t e r s f o r S ro a d t h e o r e t i c a l

c ~ ~ s L d e r a t i o n s . s a r c i t s p a i n s t a k i n g c a t e ~ o r i s a t i o n f a g g l o x e r a t i v e

f a c t o r s -.:ltl? s p e c i a l ernphasis on mark et c?err.and xa y add some neede d

r i g c u r b u t d o es n o th i ng i o c na ng c t h e b a s i s o f l de be rt s l o c a t i o n a l


36/46

s;yste,:. 112 ar,y cz se , t o t h e e:cter:t t h a t Weber d i d a11o:;1 Gone cr?,i , iric al

d z t c t o cy ee? i n t o h i s i ni -L ia l. "p ur c 1;:ieory" vol ~~u ;ic , ? ; e r e i s n o & o u s ta

a: ; s : .~areness o f t ho se I ' c:c' to r. ,rhosc o : ; :~ s s ~ o n sarc i s a t pzLr,s t o

?oil ; aut.L .

. - i c ? i % l c i s n : i l i i ~ i ~u m i n t e r n s o f zn l l - i ~ i e r ~ r 'r iover- e:n.~i=asls o n t r a r i s l ~ o r ' i l "ihc : lc b er ia n a n a l y s i s c a n n o t b e .ta>;en to^

s e r i ou s l y . : i ~ : ~ e t t ~ ' r a ue s t h x t l i e b c rt s sy ste i s i s o u t o f d a t e .

0 bv l. oi ls ly i n t h e t o t a l p i c t u r e t r a n s p o r t c o s t s may h av e become l e s s

i x j ~ o r t a n t i n c e l ?l eb er ts d ay b u t t l i i s 1iardl.y ? ro ve s W a ~ g e t t l s s s e r t i o n

t h z E " t h e r e i s a red uce d need f o r e c c e r t r i c 1 0 c s t i o n s ~ ~ ~ nd t h a t

i r,dus?;ry xi11 b e = o re and n o r e t hr o tm i n t o l i n e w i t h t h e u rb a n

h i e r a r c h y. "e p ro bl em c an i n f a c t b e much b e t t e r s t a t e d n I l e S e r l s

o : n t c m s , c a x l y , t h e r e h a s b ee n a r e c e n t s t r e c g t h e n i n g o f t h e p ~ l l

o f 2 g z l o ~ c r a t i v e nd l a b o u r l o c a t i o n s w i t h r e s p e c t t o m2n7 b r an c h es of

i x d u s t r y , Ir h e p e v i o u s s e c t i o n t h i s was shovm t o b e t h e r e s u l t ol"

f e l l l r . ~ r a ~ s o r t o s t s and, t o a l e s s e r e x t en t , 2 c p - a l ~ t i o n rsrr tk .

T-.,.. , u L A J.. t h e r e i s a n i n c r e a s i n g te nd en cy f o r t h e x a t c r i a l i n d ex of

i n d u s ~ r i e s o dr o n and, t hu s, t o i n c r ea s e t h e c o n c u ~ p t i o n e n t r e ' s

i o c z t i o n z l adx -an tzg e ( i . e ., l i k t i n d u s t r y ) . T h e p i c t u r e i s ~:,adc

c i c c r c , - by t hi n lc l ng o f t h e 2 r o b l e n in t h i s w ay r a t l i c r t h a n i n % h e v ag ue

t e r x 09 K z ~ g e t t - t y p e g e n c r a l i s a t i o n s . T h is i s e ve n n o r e i c p o r t a c z

rrhen -;e c o n s i d e r s f t c r ~ h e c o c ti n u in g s t r c n g t h of heavy i n a i i s ~ r i e s

( m e t a l r e z i n i n g , p e t r o - c h e ni c a i s , e t c , ) i n t h e p r o c e s s o f c o n t i n u e d

e c o n o ~ i c e ve lo p ae n t and t h e i r c o nt in u ed l o c a t i o n a l r e l i a n c e or*

t r ~ n s p o r ~ a z i o n a c t o r s .

i n S ~ LT T B P Y, a s ha s been c l a r i f i e d e a r l i e r , t h e o p t in 2 1 t r sc s 2c - t -

a t i o n p o i n ti s

o n ly a n e t h o d o lo g i c a l s t a r t i n g p o i n t .The ~ a i n e a s o n

L19?. Xz22c-Lt Lcc ihi orn L dna .i.s is i n Human Geozmn11-i~ lie;: York: St.- < . .I . .--~ . - a r - ; ~ n Press, 1966 .


37/46

Pl o r s k i s i s t h ~ t r a n s ~ o r t s t h e f e c t o r r ~ o s t ap ab le o f quant i t a t ive

2nalysi .s . l l l e r e i s ; - i o i ; " ; ~ ~ ~i n Ycber e i t h e r e x p l i c i t o r i n 2 l i c i t t o- 9, ,, ,c st 'ch2t t r a z s p c r t i s t h e b e 3 and end a l l o f l o c a t i o n ar ia1ysj .s.

I n + ;hi s s ec t i o n solnc a s pe c t s o f t h c xo rk 1 n o r e r e c e n t a u t h o r s

i n i n d u s i r i n l l o c z t i o n econom ics h av e b ec n c o ns i de r ed . T h e i r

co;;tribu-clons have been described a s a r e s t a t e n e n t p er ha ps t h i s

d o c s t h e i r f a cuL iy o r o r i g i n a l i % ? r s om et hi ng l e s s t h a n j u s t i c e .

iTever t?Lelcss , i t i s c o ni e nd e a t h a t o n l y m nrg i n a l a d d i t i o n s h av e be en

made t o t h e o r i g i n a l f o r n u l a t i o n of t h e l o c a t i o n 2 ro bl er . by A l f r e d

;ieber.

On t h e o t h e r hand, develonm ents i n t h e l i t e r a t u r e i n i t i a t e d by

t h e ,.,-- { d i ~ i f L e o ~ 4oses have ta :en l oc a t i o n th eo ry f r t m r a r a s

inte:;ra"Ym c:rith p1-oductlon th eo ry , F or t h i s r e a s o n t h e s e de ve lo p-

n e n t s d e s e r v e c o n s i d e r a t i on i n t h e i r own r i g h t .


38/46

e;;a:? ::ed t l :~ : , f a r h as i l l e 1 f c c l added l i t ~ l e o t h e th eo r y of i o c z t i ~ f i ,i7 3lo sone exicent , t h e a n a l y s ~ s ias bccn made nore r igorous and sore

e l ,= bo r s t e su b s t i t u t i on necha ii isms have been worked ou t . Bu t, IXC L;~

u n a e r l y l r , ~ ; problens of Weber s i e chn ique r e r i a i n concea l ed .

: t h e f i r s t pi-ace, t r i g h t S c wondered vrkether t h e r e cou1.u be

t i o n f o r each J. LU Z.

Kore L ~ : ~ ~ O ~ ~ J J & Qa The ex i s t ence. i n

t h e r e a l r. :~ , r lL?f brar ,ch f a c t o r i e s r.rould s u g ~ e s t h a t t h i s i s s o. 1-or2___ ----p a r t i c g l a r l y , - w hi le t h e s e r i e s o f7-- -o p t i x i l IJ eb er ia n s o l ut , io n i s r e a c h

dif:'ic.CLt.La s e e how su ch a.gSoO1,uti~n o t h e l o c a t i o n pr ob le m o f t h e_ A -

i n d b d d u ~ l - f i r n i t s a s an i n t e g r a l p a r t o f t h e g e ne ra l t he or y of

~ r o d u c t i o n . 6 2 t e r a l l , is n o t p a r t i c u l a r l y o bv io us t h a t t h e s o l u t i o nt . I _ .

of op t j . rn ~c o ca t io n and optirilum l e v e l o f p ro duct ion a r e sep ar ab le . Fiovr-

e v e r , t h i s i s t h e c a s e i n a l l t h e a n a l ys e s which h av e be en c o ns i de r ee

so P a r. E c o ~ o n i e s f s c a l e e n t e r t h e p i c t u r e o n l y e f t e r an optirru.3s . -.

l o c a r , i o ~ a s b ee n chosen. A t h i s s t a g e a d ec i s i on i s made on what7

l e v e l o f o u t p u t s h o ul d b e p ro du ce d. h id de n a s s u n p t i o n w i t h a l l t k c s e

a u t h o r s , i f i c l u a i n g Weber, ~ g s c h , s a r d a nd Hoover, seem s t o be t h eke

1 i s c ho s en u n de r c a n d i t i o n s o f c o n s t a n t r e t u r n s go s c a l e . Thus,

l o c a t i a r , i s c hosen im igp snden t l y o f t h e s caLe o f ope ra t i o ns . The

c or ,c ic si or , t h a t t h e o p t i n a l l o c a t i o n w i t h r e g a r d t o nnLnir;lising c o s t s i s

t h e p o i n t o f minixdm t r a n s p o r t c o s t s d o es n o t f o l l o w m er e ly f r o n

as sm An,< no g eo gr ap hi c v a r i a t i o n s i n t h e p r i c e s o r q u a l i t i e s o f i n p u t s


39/46

a t JL --.- A ..L , ~ L , , , ~ , L v ~ o u r c es . A ls o i x n l i c d i s an assumption o f l i ~ e a r

p ro dx ct lo n f u ~ c t i o n s ..o o x I-ooe sS1 c o n e s c l o s e t o o ve rc on in : t h c r e p r o b l em s y ;li.c :ri.q

.fzc-;or ass-~itu-Lion and thus alter-ir,: ; t h e cnr.c i i t iocs of on t j . za i i ' ;y ic

l o c 2 i o r , . -jic or- - c o ~ c i ~ r s i o n s . t h a t _ o c , ? t i o ~ , ;;l;li..ch has nre-vri.g;lsl.;rb e e n t re2tei- i i n i s ol a ti . o- , s h ou l d b e t r e a t e d :is a n i n t e g r a l p a r t of

t h e ? y o f i t m a x i m i s ~ t i o n r o ce s s of i n d i v i d u a l f i r m , s o t h a t " ;?rofi:

n s r i n i s a t i o n r c q u i r e s a p r o p er a d j u s t n c n t o f o u t p u t, i n p u t

c o r n b i n a t i o n , l o c a t i o n and p r i c e . t 52

L e t z r e t u r n t o t h e s i m p le pr ob le m o f a f i r x us i n g t v o t r~ ns -c -r ; -

a S l e i n p u t s , T and K w i t h n a r k e t l o c a t e d 2t p o i n t ( F i g u r e 1; .2

S o ~ r c c : L pioses, on. c i t . , p , 259.

5 - 1, ~: c: l f L ~ c c t l . o n r d t k e Theory of Pr o : i ~c t io n , _Q_l: :rLcrl7r T~':nn?l--

~f~CCZOY*, Vol. L Z I l . (1958), pp.

259 72 .


40/46

. 7sl:-:?i.l;;; t h e problem .c"Uus a s su m z t h: i t t h e d i s t n r i c e s.rhi ch t h e fi::;:l

~ r 0 3 : ; c t :135 t o b e ship>>: ? r c x a i n s conr,t: r,t and - th at t h e f r e i g h t r a t e s

c;r. t:*,c f i n a l n r ~ d c c t r e tS,-,ed. Thus, a n a r c c an b e d es c r i b ed i n tk ?,:oca:,;or.al. f i g ~ r c : uit-r::; t11c t l -i nn ; ;i c i n I 2 ~ c i . All points or- t h e

, ~ - c IJ- nr: be cof is idercc? t o h a v e equal ra r l ;o t i rLz c o s t s . L n i t k l - I ; . ,A*

o n l y p o i n t s on this a r c : i r e .tb b e considered a s po.Lcn.Lin1 l o c z t i o ~ s .

joy: each : ;.ove=ie~t a l on g t h e cu rv e f r o x I t o J incre;l:;es the. .

a r s t a n c e , w l ~ l h h a s t o b e s h i p r ~ ed nd t h u s , w i t h g i v e n f r e i 2h . t r a c s ,

z l t e r s t h e r a t L o o f delivered p r i c e s o f 5 and ] - ? o r e a c h p o i r. t ,the:?, on I J ci.ve- an e x n c ~ d i t u r e e v e l o n r a w m a t e r i a l - s , t h e r e e:cis;s

a r e s o c r c e t r ~ n s f o r r : a t i o n c u r v c 1;ihose s l o p e r.rl.11 be de tc r in i r i ed n;r t : ? ~

r a t i o o f d e l i v e r e d p r i c e s et t h a t p o i n t . T h e r e f o r e , f o r a given o u t l Ly,

2 3 i n F i g u r e r e - ? r es e n t s t h e i s o - o u t l a y c u rv e a s s o c i a t e d w i t h

p r o a x t i o n 2t a g i v e n p o i n t , s a y I and DE r e p r e s e n t s an i s o - o u t i z y

c u r v e a s s o c i z t e d p e r h ap s w i t h p o i n t J.


41/46

- - .li :s ;;eye kc; re::-Lrict o u r icc ati o:- . C ~ D ~ C Co I o r 2 :ic co:;.c:

c , .say .Lke :~~L].o;;:~yg 1-oyt pb;:;);~.c 5: 11 ] ~ ~ l - l d2

a r e c o o e c o ~ : a ~r : c d I?I-

2 .

; Y:,,;Ic , ; I -CS~CT' . t ?~1: o:


42/46

l c c a t i o : ; cnr.c .(-:: en out::ut i sless than Gopci~-':~r? ocationa i i

C ~ c n u t p u t i s~ r e a t e r h a n9 o p t i m ~ n

location a L J) .

2 location c 2 ~ :d e r i v a t i o n oftotal cost curve

c o s t

Quantity


43/46

>.X z of :I x c i 01\: of 1.1 . orcov cover, t h i s o :p t i r, :~~l r. i - t ; ; l a t l o n z r i s c s ac

1 2- . .s ; ? ? c c l P l c i o c a t i o n I Si:-:i.::.?ir7'.yJ pa in - t B re;)rese: i ts ;in o p t i r r . ~ ~ u-~ni;:o~ 1 263 u.--:1, sL 1.ihicii i s o b t n i n c d f o r ari cx:)er~d:lt,urc of 5 . '?his,,.-- . . .. -. . L ~ilrc;?zses 2nd -trrin:;por s Oy, of r i ; ; ~ l ~ r ~ t : .i- ; I~ i i ; j?: 01

. . ....: ; ;.,, t o ihc o i > i ; i . ~ l ~ , O C ~ . C - ~ . O M .: ?ici? in t i l l s case I ri - c - , ~ ~ 7 - - c a - . - L J d.e c r c r-o .i i n a p o s i t i o n i o d e r i v e s o n e p r o p o s i t i o n s :

The,2-e? c?: i'e o> t imux l o c a t i on v m i e s tri.'ch ou t pu t .

T h e c r c z 13: The oniinux 1-oc:j t ion Is o n l y by c h an ce t h e p o i n t o f-n i r i i~ nun r ~ n s p o r t o s t s .

T : . . ~ ,. . l~~ ?- ? .1.1: Ti:t?re nap- c no re t h a n one o:~-Linilu~' r h e a bo ve s e n s ecie;>endi.n~ o n t h e sha?e of t h e .? .so-ox tl ay cu rv es and t h e

i.soqu;?nts. I f t h i s i s + he c a s e , t h e n i t 1.~ri1.l en e ce s sa r y t o f i n d an l l o p t i m m o n ti n or u m.

e.3 Cc. .c7::si on.

,:oscr, h s Seen bas i ca l ly c~ i - i ce rnec i w i th t h e i n t e g r a t i o n o f

l o c c t l o n t?.eor;r w i th t h e t h eo r y o f t h e f i r c . To t h i s e nd , h e h a s

o e e c s u c c e s s f u i . The i n s e p a r a b i l i t y of o>tizun? , out> ut , opLirru.3

l o c z i i o n :.rid o : Y ~ i r ~ ~n p u t has b ee n p ro ve d. us, i n t h e f i n c i-ci?r,l-vsLs, t h e - op:i:-tm 1 _ 0 e o g - s seen t o C e p e ~ d n b a s e ~ r i c e s fU LL I

-s,transEt r a t e s on i n v u t and f i n a l p - r o du c t , t h e ~ e o e r a p h y=

o z l 3 . e b c a $ $ on _ a l fi&ure,-t-lie ~ r o d u c t i a n - f ~ c ~ c ~ : L i o n nd the*.de.-and

f u c t i o n . 51

5i?:osc2, a n . CS. ?. 2 6 9


44/46

--x2 t ; i i : ; pz;,er vra havc been conce-i-r,ed :.~it:? srious fori;;:s o f thc

. .D.LZ C -";ic 7 7 7 . . .. _ o f i ocz ' c i on . : , c nnvc s c c r i t h a t l; hai; pure ti:eory cicscr:;;:;~3 - -.ioics o:ly cr,jcr i t s :;i:nule ~~; sr u:n;: t ; j.ons.

l . ~ e, I c nn~ v i t i l 2t1Prcd Ii cb cr , :.:: o:;c p r c i l n i n a r y q~? es t:; .o n o:?ccrancc:

. .L,c : L... r>l:;. .- b u t z t t h e s a n e t i n e u i d n o t o - ~. cr si x pi iZ :' g . 4lc bc r s inr;i:::r,tr;

i n econo:xic h i s t o r ;r have Secn f a r ahead 0 2 t h e i r t i r n e .-~c l a t c r s e c t l a n s the ~ a t u r e f t h c e n q ~ i r y as c hzn ge d. ;ie

d i s c - ~ s s d ::eYa 5 h c o p t i n a l f i r n l o c a t i o n co uld b e found. I t is i n. . .; f i ls cor,;e::t t h a t l eber 's sys tem bo th ov er si np l i l" ie s and xizs s sc 2

o; t h z essentials . The i n l c g r a z i o n of l o c a t i o n an d p r o d u c t i o n th eo r; .

ha s a i r a i t e c more r ecen t , au th o r s have p roduced l ?o rnu l. a t i ons f a r

r e r o v c d , n t e r m o f a c a l y t i c a l te ch ni qu e, f r o n t h e c on s t r u c ts o f

Xlfre2 L'cber. c s h o r t , :re h a v e noid p r o g r e s s e d t o t h e s t a g e o f fizd-

in - h c o kc c ;i c a l s o lu t i o n s t o t h e l ong -run s -L a t i c e q u i l i b r i ~ ~ ocz-Lion3

proz,ex.

E:oY;:ever, t h e r e i s s t i l l t h e g h o s t of A U ~ I I S G ~ h s c k ? o b e d e a l t. .- H i s q u e s t i o n s c o c c e r ni n g d yn am ic e l e n e n t s i n a p r e v i o u s s e c t i o r i

have b e e r ielt wiaxs::.ered. To s o w ex te n t x e have Seen g u i l t y ol?

s t u i g in g - ace and i g no r in g t ime . And we cax not deny t n a t iwhen ;c

i ri tr od -d ce t i n e t h e r e i s no s o l u t i o n t o t h e l o c a t i o n problern. I n fac;,

i r , a dynernic s i t u a t i o n t h e o n l y way a firm cou ld knorr i f i t ;.:ere

o ? ~ i: z il y l o c a t e d would 5 e t o r e n a i n i n a c o n st a n t s t a t e o f x i g r a t i o n .

The oi l ly prac t ica l s o l u t i o n f o r t h e f i r m m ig ht , i n de e d , b e on c o f

t r i z i and e r ro r .


45/46


46/46

..::k L~l ( : e r, >/:;cto?-s (,:..d I ,< < : a r b ~,::.oft-nr;r:inr. Je; r ; o- -.--- .- -- --- 1. -, s n ~ . 2 t o n , C e nt u ry, C r o f t s , l ? b j .

/ C O L >; u ~ I.:. C I :nc i~ : r, t r. in l P1.m-i; Loca1;ri on: I t s --Ar?vl.j.c.:tlo;? t o f nr: Sri r : : : .

st . L O U ~ S , 1950.I?ric5zan?., J., ar,d Alonso, W T ~ P Ti o n n l lcvcl ol-ri.ent n g P l ? r r , l r .

C,:fbrid[:e, Mas stl chus ett s: klasscl chuset ts I n s t i t u t e of Tecr.nolo,-;T-r r e s s , 1 9 6 4 .

J G r e c n h u t , 1.1. ---- l:lnt Loc3tri.on ri.n .r' ne og a:;d Pr ac ti .c e. Cha pel H i l l :Sr Lv er s i ty o f Nor-ti? Ca ro l i na l ' r ess , 1956 .

~ H a s g c t t , P. L o c z t i o n a l--..

A n al y si s i n Hurc ,?n Gco,yran&. New York: S t . 7,:zrtl3s

P r e s s , 1 9 6 6 .

J Hoovey, "i'he Lo ca ti on of Ek on o~ .i c Ac Livj ty 2;e:r York: ;):cGrcr.~-Hi>.l. 3 ;.:,c.

. , o c ~ t i o n heor:: c~nd. the Shoe and Lca.ther 1n:ius'tr:y. C2r:hr4c ,:c,------.-----~ ~ i ? s s a c i ~ u s e k t s : assachusc- i t s I r, r ; t , i t~ t e o f Technology Press, l???

I ~ t . j . o r ? n n Scace E c o ~ o r ~ r , Cal-.bridyc, K2ssachusetcYs:l n s t i t u t e o f Te c h n o l o ~ y r es s, 1956.

,osch, A. T h e F c o r o n i c s _O LLoca t icn . T r a ~ s l a t e d rom t h e S e c o ~ z cv ls edY d i t i o n by N k io ~l om t ~ i t h h e a s s i s t a n c e ;I 1 Stolper. Mex7

naven: Yale Univers i ty P r e s s , 1 9 5 4 ) .-,. . w n ei n l e s o f Xconoaics . London: Macni l l an , 1920 .

-

r e i iekzvlour and ---- Lo ca ti on . L:md S t u d i e s i n Geography. Lund, S::e&en:E o ; ~ a l U n i v e r s i t y o f L und, 1967.

/Fu_:Lzcjn, I:., a nd E oc h, L. l " i ' r a n s ~ o r t a t i o n F a c t or s e f f e c t i n 2 L oc at io ni l e c i s i o n s , I t E c o n o ~ ~ i c- Geo);rach?~, Vol, XYXV (1959), pp. 51-60.

- .H a l o . "Models o f L ~ d u s t r l a l o c n t i o ~ , i c R. C h o r l e y a c d ?. i.zp,eLc

( e a s ) Ti odels i n Geo:ra?;.lh::. X CW York: S t . P i a r t i n ' s P r e s s ,

; loses , L. " L oc a ti o n and t h e Th eo ry or" i ' r o d ~ c t i o n , ~ ~ u8a.lrterlxi J O . ~ - - - . ) ~A I . .. Q FEconomics, Vol. LLYII (1958), pu. 259 72 .-

3 r L i t h , ?J. 1"The L o c a t i o n o f I n d u s t r y, " J n s t i t u t e f B r i t i s h G c o , ~ r a n h e r s ,Vol. ;CAI (1955), pp. 1-18,

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