Plant Location in Theory and in Practise: The Economics of Space

Plant Location in Theory and in Practise: The Economics of Space

Plant Location in Theory and in Practise: The Economics of Space

Plant Location in Theory and in Practise: The Economics of Space

Excerpt

Economists have long been interested in the factors that determine plant location; however, interest in this problem very nearly marks the extent of their unity. They are mainly at odds over such matters as the objectives of location theory. Some economists analyze the forces of location which are influential in all economic systems. Others stress the competitive ordering of location in a capitalistic economy. Thus, two distinct types of theory have emerged. One type includes the general factors that influence every plant location, regardless of economic system. This approach abstracts from governmental, institutional, and individual industrial peculiarities. The other theory attempts to develop a framework that includes all the possible factors (general and special) which determine plant location in a capitalistic state. This present study is directed towards such an inclusive capitalistic theory of location.

Because location theory has undergone great changes in assumptions in recent years, a development of its historical and technical phase is required. This book, therefore, examines the transition from the purely competitive approach of the nineteenth and early twentieth-century theorists to the monopolistically competitive locational framework of today. It focuses attention upon data which make the plant site a means of control over economic areas rather than simply the basis of productive operations.

The vastly greater present-day emphasis on monopolistic advantages offered by different sites suggests location factors which formerly were overlooked. It points out, especially, the desire to exclude competitors from selected markets and the methods of accomplishing this objective. Further, the recent change in emphasis raises the question of whether theoretical assumptions are now sufficiently generic to permit a theory which includes all factors of location. The answer to this latest con-

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