Location Theory• Location Theory – predicting where a business will or should be located.• Location of an industry is dependent on economic, political, cultural features as well as whim.• Location Theory Considers: – Variable costs-energy, transportation costs & labor costs – Friction of distance-increasing distance =increased time & cost
Location ModelsWeber’s Model-The Least Cost TheoryAlfred Weber, (1868-1958) a German economists, published Theory of the Location of Industries in 1909. His theory was the industrial equivalent of the Von Thunen Model.Manufacturing plants will locate where costs are the least.Three Categories of Costs:Transportation-the most important cost-usually the best site is where cost to transport raw material and finished product is the lowestLabor-high labor costs reduce profit-location where there is a supply of cheap, non-union labor may offset transportation costsAgglomeration-when a group of industries cluster for mutual benefit- shared services, facilities, etc.-costs can be lowerDeglomeration-when excessive agglomeration offsets advantage- eastern crowded cities
Webers Location Triangle•• Alfred Webers work (1909) is considered to have established the foundations of modern location theories. One of his core assumption is that firms will chose a location in view to minimize their costs. This involves a set of simplifications, namely that location takes place in an isolated region (no external influences) composed of one market, that space is isotropic (no variations in transport costs except a simple function of distance) and that markets are located in a specific number of centers. Those conditions are quite similar to those behind Von Thunens agricultural land use model elaborated almost one hundred years earlier. The model also assumes perfect competition, implying a high number of firms and customers, small firm sizes (to prevent disruptions created by monopolies and oligopolies) and a perfect knowledge of market conditions, both for the buyers and suppliers. Several natural resources such are water are ubiquitous (available everywhere) while many production inputs such as labor, fuel and minerals are available at specific locations. According to Weber, three main factors influence industrial location; transport costs, labor costs and agglomeration economies. Location thus imply an optimal consideration of these factors.
Webers Location Triangle•• Solving Webers location model often implies three stages; finding the least transport cost location and adjusting this location to consider labor costs and agglomeration economies. Transportation is the most important element of the model since other factors are considered to only have an adjustment effect. To solve this problem, Weber uses the location triangle within which the optimal is located. The above figure illustrates the issue of minimizing transport costs. Considering a product of w(M) tons to be sold at market M, w(S1) and w(S2) tons of materials coming respectively from S1 and S2 are necessary. The problem resides in finding an optimal factory location P located at the respective distances of d(M), d(S1) and d(S2). Several methodologies can be used to solve this problem such as drawing an analogy to a system of weights and pulleys (Varignons solution) or using trigonometry. Another way preferred among geographers, particularly with GIS, is to use cost surfaces which are overlaid.
Hotelling’s Model (Linear market)• Hotelling’s Model-Harold Hotelling (1895-1973) this economist modified Weber’s theory by saying the location of an industry cannot be understood with out reference to other similar industries-called Locational Interdependence• Losch’s Model-August Losch said that manufacturing plants choose locations where they can maximize profit. Theory: Zone of Profitability
Rank-Size Rule• The larger the city-the fewer there are-• Model indicates that the population of a city or town in inversely proportional (the fraction) to its rank in the hierarchy• If largest city is 12 million then 2nd largest is 6 m. (1/2) 3rd largest is 4 m. (2/3) 4th largest is 3 m. or (3/4) 10th largest is 1.2 millionRank-Size Rule doesNot apply toprimateCities such as Paris,Mexico City and soforth
Primate Cities• Gideon Sjoberg was also the first to study the primate city.• A nation’s leading city in size that serves as an expression of national culture. – Not necessarily large – Dominated by religious and govt. buildings – Spacious with wealth near the center – Less privileged near the edge or outside wall
Central Place Theory• Central Places-hierarchy is based on population, function & services.• Economic reach-how functions & services attract customers from areas beyond the urban limits.• Centrality-the central position & ability to attract customers to a village, town or city.• Range of Sale-the distance people are willing to travel to buy goods or services
Central Place Theory• Christaller tried to determine the degree of centrality of various places.• He created a model to show how central places in the urban hierarchy are spatially distributed.• He assumed: – No physical barriers – Soil and surface of equal quality – Even distribution of population – Uniform transportation system
Hexagonal Hinterlands C = city T = town V = village H = hamlet
Hexagonal Hinterlands• Christaller’s urban model showed that each central place had a complementary hinterland.• The hexagonal model solves the overlap problem that circles would have.• Nesting arrangement- region within a region- each larger complementary region is centered on a higher order urban place
Modeling the North American City• Concentric zone model (Ernest Burgess)• Sector model (Homer Hoyt)• Multiple Nuclei Model (Chauncy Harris and Edward Ullman)
Classic Models of Urban Structure• Ernest Burgess-1925 Concentric Zone Model based on studies of Chicago.• CBD-financial, retail, theater, museums etc.• Transition to residential with deterioration-some light industry• Blue collar labor housing• Middle class residential• Suburban ring
Functional Zonation The division of the city into certain regions (zones) for certain purposes (functions).Cairo, EgyptCentral city (above)Housing projects (right)
Classic Models of Urban Structure• Homer Hoyt-1939 Sector Model based on studies of 142 US cities.• Pie-shaped wedges created by Hoyt compensated for the drawbacks of the Ring Model• Low Rent areas & High Rent areas could extend to the outer edge• Transportation and industrial zones accounted for the sectors
• Chauncy Harris & Edward Ullman Multiple Nuclei Sector Model 1945 showed that CBD is not the sole force in creating land-use patterns.• They said that Concentric Rings & Pie-shaped models had drawbacks as CBDs were losing dominance• Subsidiary and competing CBDs developed (Edge Cities)• Suburbanization accelerated the change with shopping malls and mass transit
Post WWII-rapid expansion ofcities and suburbs led to EdgeCities with their own CBD
The Canadian City• Less dispersed with higher pop. densities than US cities• More multi-family dwellings and less disparity in wealth• Suburbs not as large or as affluent as in the US• Central city has more middle and higher income pop. & stronger tax base• Better services & public transportation systems
Calgary, A lberta skyline Toronto- Canada’slargest city
The European City• Western European cities are more compact than Canadian cities• Same size in pop. As US cities, but smaller in land area• European govt. are proactive in maintaining healthy CBDs• No sprawl-suburbs are too far out to compete with CBD• Greenbelts preserve the central city from close suburban development• Very high fuel costs discourage suburban development• Central cities are clogged with cars, but mass transit, bikes, and walking are relied on for transportation• Zoning rules are strictly enforced and highway and beltway construction lags.
The European City• London-6.4 m., Paris 10.2 m., Rome, Berlin, Madrid and Athens are megacities by world standards• These are historic cities not impacted by the Industrial Revolution• British Midlands & German Ruhr valley cities are very different-smaller & heavily industrialized- destroyed in WWII• Paris, Athens and Lisbon are Primate cities
The European City-Greenbelts• London’s Central city is the same size it was in 1960• Greenbelts were est. to counteract ill effects of Ind. Rev.• Open countryside over 20 miles wide has scattered towns, but no extensive suburban areas• Many urban parks maintain a green areas within the city
During the second half ofthe 20th century…Nature of manufacturingchanged and locationschanged, too. Manyfactories have beenabandoned, creating “rustbelts” out of once-thrivingindustrial districts. Duisburg, Germany
The Eastern European City• Eastern European & Russian cities were turned into microdistricts by communist planning• Old primate and historical cities were ignored• Huge dominant square & wide radiating avenues fronted by huge apartment complexes with factories, schools, shops & so on.
The Eastern European City• Large 7 to 11 story complexes were rapidly built of shoddy material with no decoration-ugly and depressing• Moscow’s growing pop. (11 m.) lives in microdistricts that radiate out from Red Square.• St. Petersburg was rebuilt in the ugly socialist style after heavy damage in World War II
Modeling the Cities of the Global Periphery and Semiperiphery• Latin American City (Griffin-Ford model)• African City (de Blij model)• Southeast Asian City (McGee model)
Making Cities in the Global Periphery and Semiperiphery- sharp contrastbetween richand poor- Often lackzoning laws orenforcement ofzoning laws
The Ibero-American City• Latin American cities are growing rapidly-1950= 41% urban, 1997 74% urban• CBD dominates the center with 2 main divisions-traditional market and modern high rises• A commercial spine and axis of business is surrounded by elite residential housing Griffin-Ford model
The Ibero-American City• The spine is an extension of the CBD with offices, shops, high class housing, restaurants, theaters, & parks• Zone of Maturity-Middle class housing 2nd best• Zone of In Situ Accretion- high pop. Density of modest housing• Periphery-Periferico-high density shanty towns of extreme poverty and no services
The African City• African cities often have 3 CBDs=Colonial, Traditional and Periodic Market Zone• Sub-Saharan Africa is the least urbanized area of the world, but the most rapidly urbanizing• No large cities to match Cairo- Kinshasa, Nairobi, Harare, Dakar, Abidjan were established by Europeans de Blij model
The African City• No large cities to match Cairo-Kinshasa, Nairobi, Harare, Dakar, Abidjan were established by Europeans• South African cities-Johannesburg, Cape Town & Durbin are western cities with elements of European and American models-high rise CBDs and sprawling suburbs
The Southeast Asian City• SE Asia-rapid growth of population & cities-1950- 15% urban, 1990s-29% urban• Most growth in coastal cities like Ho Chi Minh City (Saigon)• Old colonial port zone surrounds the commercial district• Unlike Western cities-no formal business zone, but separate clusters McGee model