Theory of industrial location

He singled out two special cases. In one the weight of the final product is less than the weight of the raw material going into making the product. This is the weight losing case.

Theory of industrial location

Alfered Weber a German economist was the first economist who gave scientific exposition to the theory of location and thus filled a theoretical gap created by classical economists. The basis of his theory is the study of general factors which pull an industry towards different geographical regions.

It is thus deductive in approach.

Location theory - Wikipedia

In his theory he has taken into consideration factors that decide the actual setting up of an industry in a particular area. Weber was faced with many serious problems. He wanted to find out why did industry moved from one place to another and what factors determined the movement.

After considerable thinking he came to the conclusion that causes be responsible for this migration could be Regional Factors Primary Causes and Agglomerative and deglomerative factors Secondary Factors. In so far as regional factors were concerned these, among other things, included cost of the ground, buildings, machines, material, power, fuel, labour, transportation charges and amount of interest that the capital would have earned.

Regional Factors Primary Theory of industrial location According to Weber transportation costs play a vital role in the location of an industry.

Each industry will try to find location at a place where transportation charges are the barest minimum, both in terms of availability of resources and place of consumption.

Weber’s Theory of Industrial Location (With Criticism) | Economics

According to him transportation costs are determined by the weight to be transported on the one hand and distance to be covered on the other. Then the cost will also depend on the type of transportation system available and the extent to which it is in use.

While discussing regional factors, Weber has discussed the idea of locational figure.

Theory of industrial location

According to him every industry will try to see that it is located at a place where raw material is available nearest to the place of consumption on the one hand and most advantageously located material deposits on the other.

These locational figures, therefore, represent the first and most important basis for formulating the theory. Weber, before proceeding further, has classified raw material into different categories e.

Obviously the later play a bigger and important role than the former. Weber, while discussing the theory of location, has also discussed laws of transportation. According to him material index measures the total weight to be moved.

From material index he understood the portion of the weight of localised material to the weight of the product. Weber was faced with a serious problem namely why the industries deviate from the centre of least transport costs. One such reason could be differences in the labour costs.

This labour cost can be cheap either because of differing levels of efficiency and of wages of labour or because of differing levels of efficiency in the organisation and the technical equipment which the labour is required to use.

Alfred Weber - Wikipedia See Article History Location theory, in economics and geography, theory concerned with the geographic location of economic activity; it has become an integral part of economic geography, regional scienceand spatial economics.

Labour cost can go up and come down due to distribution of population as well. Weber himself has said that, with a high index of labour costs, a large quantity of labour costs will be available for comparison with correspondingly high critical isodapanes, and therefore we shall find a high potential attracting powers of the labour locations and vice versa.

Agglomerative and Deglomerative Factory Secondary Causes: We have so far been discussing primary causes of industrial location.Alfred Weber's theory of industrial location, explaining and predicting where industries will locate based on cost analysis of transportation, labor, and agglomeration factors.

Life. Alfred Weber was born in Erfurt and raised in yunusemremert.com to , he was a professor at the University of Heidelberg.. Work. Weber supported reintroducing theory and causal models to the field of economics, in addition to using historical yunusemremert.com this field, his achievements involve work on early models of industrial yunusemremert.com lived during the period when sociology Died: 2 May (aged 89), Heidelberg, Baden-Württemberg.

Location theory has become an integral part of economic geography, regional science, and spatial economics. Location theory addresses questions of what economic activities are located where and why. Location theory addresses questions of what economic activities are located where and why.

Location theory has become an integral part of economic geography, regional science, and spatial economics. Location theory addresses questions of what economic activities are located where and why.

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Location theory addresses questions of what economic activities are located where and why. ADVERTISEMENTS: Alfered Weber a German economist was the first economist who gave scientific exposition to the theory of location and thus filled a theoretical gap created by classical economists.

This theory is based on the ‘least cost principle’ which is used to account for location of a manufacturing industry. The theory is based upon a single, isolated country with homogeneous conditions.

Weber’s Theory of Industrial Location (With Criticism) | Economics