Sargent Florence Theory Of Industrial Location Pdf 30
Sargent Florence Theory of Industrial Location: A Comprehensive Guide for Students and Researchers
If you are interested in the study of industrial location, you may have come across the name of Sargent Florence, a British economist who developed an inductive theory that explains the causes of industrial location based on statistical data. In this article, we will introduce you to the main concepts and applications of Sargent Florence Theory of Industrial Location, as well as some of its criticisms and limitations.
Sargent Florence Theory Of Industrial Location Pdf 30
What is Sargent Florence Theory of Industrial Location?
Sargent Florence Theory of Industrial Location is an inductive theory that explains the causes of industrial location based on statistical data. According to this theory, the problems of industrial location are more related to the distribution of the occupied population of the country than its geographical areas. The theory is based on two new concepts: location factor and coefficient of localization.
Location Factor
The location factor refers to the percentage of all workers in a particular industry found in a certain region to the percentage of all workers in that industry. It indicates the degree of centralization or decentralization of an industry in a region. If the location factor index is greater than one, it means that the industry is centralized in that region; if it is less than one, it means that the industry is decentralized; if it is equal to one, it means that the industry is evenly distributed. The location factor index can be calculated by using the following formula:
Location factor index = (Percentage of workers in a given area / Percentage of workers in a given industry) / (Percentage of workers in all areas / Percentage of workers in all industries)
Coefficient of Localization
The coefficient of localization refers to the variance between the percentage of workers in a given area and the percentage of workers in a given industry. It indicates the propensity of concentration or dispersion of industries. If the coefficient of localization is zero, it means that industries are evenly distributed over all areas; if it is one, it means that industries are concentrated in one area; if it is greater or less than one, it means that industries have a tendency of centralization or decentralization respectively. The coefficient of localization can be calculated by using the following formula:
Coefficient of localization = (Percentage of workers in a given area - Percentage of workers in a given industry) / 100
What are the applications of Sargent Florence Theory of Industrial Location?
Sargent Florence Theory of Industrial Location can be used to measure and compare the spatial distribution and concentration of industries across different regions or countries. It can also help to identify the factors that influence the location decisions of firms and industries, such as labor availability, market access, transport costs, agglomeration economies, natural resources, government policies, etc. Furthermore, it can provide useful insights for urban and regional planning, especially in terms of promoting balanced regional development, reducing regional disparities, and enhancing regional competitiveness.
One of the most notable applications of Sargent Florence Theory of Industrial Location was his work on the National Resources Planning Board (NRPB) in the United States during World War II. He wrote a chapter identifying the geographic concentration of major industry groups, making extensive use of his coefficient of localization. He also suggested some policies to encourage the decentralization of industries from congested areas to less developed regions, in order to reduce vulnerability to enemy attacks, improve living conditions, and utilize natural resources more efficiently.
What are the criticisms and limitations of Sargent Florence Theory of Industrial Location?
Despite its usefulness and popularity, Sargent Florence Theory of Industrial Location has also faced some criticisms and limitations from various perspectives. Some of the main ones are:
It ignores the causes of location: The theory only tells whether an industry is centralized or decentralized, but not why. It does not consider the production factors, market conditions, transport costs, or other determinants of location that may vary across industries and regions.
It is difficult to know the propensity of localization: It is not easy to obtain reliable and comparable data on the percentage of workers in different areas and industries. Moreover, the coefficient of localization may vary depending on the level of aggregation or disaggregation of the data. For example, an industry may appear to be decentralized at the national level, but centralized at the regional or local level.
It does not account for spatial interactions: The theory assumes that each region or area is independent and isolated from each other. It does not capture the effects of inter-regional trade, migration, communication, or other forms of spatial interactions that may influence the location patterns of industries.
It is static and descriptive: The theory only describes the existing state of industrial location at a given point in time. It does not explain how industrial location changes over time due to technological innovations, market dynamics, political interventions, or other factors.
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