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A Mathematical Model for the Location of Industry in Developing Areas

Author

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  • D Shefer

    (Center for Urban and Regional Studies, Technion—Israel Institute of Technology, Haifa, Israel)

Abstract

The major aim of the model developed in this paper is to assist decision makers in identifying the industries which are likely to be attracted to underdeveloped regions as a result of specially devised government policies. The effect of these policies in achieving objectives, such as the reduction of unemployment and underemployment, will differ from industry to industry. Thus it is most important to investigate the production function parameters of each of the industries which are likely to be attracted to these regions, so as to determine to what extent the devised policies will achieve their declared objectives. This paper shows that no single policy can be applied for all industries. It is therefore necessary first to identify the industry and thereupon to devise the proper policy that will advance the overall set of objectives. Finally, we describe in a graphical form in the appendix the gaming process of the on-the-job-training programme which takes place between the trainee and the employer through time.

Suggested Citation

  • D Shefer, 1975. "A Mathematical Model for the Location of Industry in Developing Areas," Environment and Planning A, , vol. 7(3), pages 251-262, May.
    • Handle: RePEc:sae:envira:v:7:y:1975:i:3:p:251-262
    DOI: 10.1068/a070251
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    References listed on IDEAS

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    1. J. R. Hicks, 1963. "The Theory of Wages," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-00189-7, December.
    2. William K. Tabb, 1969. "Government Incentives to Private Industry to Locate in Urban Poverty Areas," Land Economics, University of Wisconsin Press, vol. 45(4), pages 392-399.
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    Cited by:

    1. Daniel Shefer, 2011. "The Center-periphery Dilemma and the Issue of Equity in Regional Development," ERSA conference papers ersa11p1192, European Regional Science Association.

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