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An Analytical Study of Industrial Location As Applied to the United Arab Republic

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An Analytical Study of Industrial Location As Applied to the United Arab Republic Louisiana State University LSU Digital Commons LSU Historical Dissertations and Theses Graduate School 1965 An Analytical Study of Industrial Location as Applied to the United Arab Republic. Abdel Hady Koraitim Louisiana State University and Agricultural & Mechanical College Follow this and additional works at: https://digitalcommons.lsu.edu/gradschool_disstheses Recommended Citation Koraitim, Abdel Hady, "An Analytical Study of Industrial Location as Applied to the United Arab Republic." (1965). LSU Historical Dissertations and Theses. 1014. https://digitalcommons.lsu.edu/gradschool_disstheses/1014 This Dissertation is brought to you for free and open access by the Graduate School at LSU Digital Commons. It has been accepted for inclusion in LSU Historical Dissertations and Theses by an authorized administrator of LSU Digital Commons. For more information, please contact [email protected]. This dissertation has been 65-6411 microfilmed exactly as received KORAITIM, Abdel Hady, 1928- AN ANALYTICAL STUDY OF INDUSTRIAL LOCATION AS APPLIED TO THE UNITED ARAB REPUBLIC. Louisiana State University, Ph. D ., 1965 Economics, commerce-business University Microfilms, Inc., Ann Arbor, Michigan AN ANALYTICAL STUDY OF INDUSTRIAL LOCATION AS APPLIED TO THE UNITED ARAB REPUBLIC A Dissertation Submitted to the Graduate Faculty of the Louisiana State University and Agricultural and Mechanical College in partial fulfillment of the requirements for the degree of Doctor of Philosophy i n The Department of Management and Marketing by Abdel Hady Koraitim B-Com., Alexandria University, 1950 M-Com., Alexandria University, 1955 M.B.A., The University of Wisconsin, 1963 January, 1965 ACKNOWLEDGMENT The author wishes to express his sincere appreciation to Dr. Raymond V. Lesikar, Head of the Department of Management and Marketing, for his constant assistance and helpful suggestions. Members of the advisory committee: Dean William D. Ross, Dean of the College of Business Administration, Drs. James W. Reddoch, Donald E. Vaughn, and Herbert G- Hicks are graciously recognized for reading and criticizing the manuscript. Special gratitude is owed to Dr. Leon C. Megginson, under whose direction this work was accomplished, for his helpful guidance, extensive assistance, and tireless counsel. Deepest thanks are extended to the Government of the United Arab Republic for her support throughout the course of my graduate studies in the United States. Warm gratitude is expressed to my wife, Elham, not only for her encouragement and inspiration, but also for her assistance in preparing the manuscript. Consideration is also due to my daughter, Lubna, and my son, Mohamed, for their patience during the long hours when the T-V. had to be darkened. TABLE OF CONTENTS CHAPTER Page ' ACKNOWLEDGMENT.................................................. i i LIST OF TABLES.............................................. viii LIST OF F I G U R E S ............................................ ix ABSTRACT...................................................... x INTRODUCTION................................................. xiii PURPOSE ................................................. xiii METHOD OF COLLECTING D A T A ............................ xiv EXTENT AND LIMITATIONS................................. xiv METHOD OF PRESENTATION................................. xv I. BACKGROUND FACTORS.......................................... 1 HISTORICAL FACTORS........................................... 3 THE DEVELOPMENT OF A THEORY OF INDUSTRIAL LOCATION- - - 6 The Least Cost Location Theory.................... 8 The Locational Interdependence Theory............ 10 The Maximum-Profit Theory.......................... 11 Isard’s General Theory ............................ 12 II. FACTORS OF LOCATION......................................... 16 RAW MATERIALS................................................ 17 Materials and Processes............................ 19 Techniques of Distribution and Utilization . 20 THE MARKET................................................... 21 TRANSFER COSTS AND TECHNIQUES ............................. 24 Transportation Media............................... 25 Media Cost........................................... 25 Distance and Topography............................ 26 Urgency and Dependability.......................... 27 Shipping Facilities................................ 28 Special Services.................................... 28 INTERRELATIONSHIPS AMONG RAW MATERIALS, MARKETS, AND TRANSFER COSTS............................................... 29 i i i CHAPTER Page LABOR SUPPLY AND COST....................................... 32 Labor Coat............................................ 33 Labor Supply.......................................... 35 Special Skills....................................... 36 THE AVAILABILITY OF CAPITAL................................ 3 7 MANAGERIAL ABILITY........................................... 38 ENERGY SOURCES............................................... 39 INDUSTRIAL CONCENTRATION AND DISPERSAL .................. 40 CLIMATIC CONDITIONS.......................................... 42 LOCAL FACTORS................................................. 43 Land and Building ................................... 44 Availability of Services............................ 45 Water Supply.......................................... 45 Promotional Activities.............................. 47 Financial assistance ............................ 47 Providing information............................ 48 THE ILLUSION OF THE IDEAL LOCATION ....................... 49 III. TECHNIQUES OF ANALYSIS...................................... 50 Methods of Studies ............................... 50 The comparative cost analysis.................. 50 The input-output analysis....................... 52 Linear programming............................... 53 The industrial complex analysis................ 54 The market position techniques ................ 54 The use of computers............................. 57 TV. MOBILITY OF PRODUCTION FACTORS............................. 59 Land Immobility...................................... 59 Capital Mobility..................................... 60 Labor Mobility....................................... 60 Managerial Mobility ................................ 61 Barriers to Mobility of Production Factors. 62 Inducements to Mobility of Production Factors . 63 Capital inducements.............................. 64 Labor inducements................................ 65 International inducements....................... 65 iv CHAPTER Page V. RECENT TENDENCIES IN THE LOCATION OF INDUSTRIES IN THE UNITED STATES............................................ 70 Extent and Direction of Change of Industrial Location.................................. 70 Factors Influencing Change in the Location of Indus try.............................................. 73 Climate............................................ 78 Labor. ..... ................................ 78 Raw materials..................................... 79 Transportation ................................... 80 National security................................ 81 Decentralization ................................ 82 Other factors..................................... 83 Local Tendencies in the Location of Industries. 84 The community..................................... 8 5 Industrial centers .............................. 86 Competition for industry ....................... 86 VI. FACTORS OF LOCATION AS APPLIED TO THE EGYPTIAN INDUSTRIES.................................................... 87 HISTORICAL FACTORS........................................... 87 Old Industrial Centers ............................. 88 Damietta........................................... 88 Mahal la el K u b r a ................................ 90 Qalyub............................................. 90 A s s u i t ............................................ 90 A k h m i m ............................................ 91 Founders' Residence ................................ 91 Urban Attraction..................................... 92 TOPOGRAPHICAL FACTORS 9 2 Land Surface.......................................... 93 Climatic Conditions ................................ 93 Water Supply. ....................................... 94 Drainage Facilities ................................ 95 ECONOMIC FACTORS............................................. 95 Raw Materials ....................................... 96 Industrial locations influenced by raw materials.................. 97 The Market ......................... 101 Industrial locations influenced by the m a r k e t ............................ 104 Transportation Facilities ......................... 106 v CHAPTER Page Means of transportation......... ........... 107 Industrial locations influenced by transportation facilities..................... Ill The Labor Force.................................... 112 Industrial, locations influenced by the labor force..................................... 118 The Availability of Capital ..................... 120 Industrial locations influenced by the availability of capital....................... 121 Managerial Ability. .... 122 Industrial locations influenced by managerial ability ............................ 124 Energy Sources..................................... 125 Industrial locations influenced by energy sources ................................ 126 Industrial Concentration......................... 127 Industrial locations influenced by industrial concentration ....................
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