Sargent Florence Theory Of Industrial Location Pdf 30

Sargent Florence Theory of Industrial Location PDF 30

The Sargent Florence theory of industrial location is an inductive and empirical approach to explain the spatial distribution of industries. It was developed by Professor L. S. Sargent Florence, a British economist and statistician, in the 1920s and 1930s. The theory is based on two main concepts: the location factor and the coefficient of localization.

Location Factor

The location factor is an index that measures the degree of concentration or dispersion of an industry in a particular region or area. It is calculated by dividing the percentage of workers employed in a specific industry in a given region by the percentage of all industrial workers in the country. The formula for the location factor is:

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$$Location Factor = \fracPercentage of workers in a specific industry in a given regionPercentage of all industrial workers in the country$$

If the location factor is equal to one, it means that the industry is evenly distributed across the country. If it is greater than one, it indicates that the industry is concentrated or centralized in that region. If it is less than one, it implies that the industry is dispersed or decentralized in that region.

Coefficient of Localization

The coefficient of localization is another index that shows the tendency of an industry to cluster or spread out in different regions or areas. It is computed by adding up the positive deviations of the percentage of workers employed in a specific industry in each region from the percentage of all workers in each region, and then dividing by 100. The formula for the coefficient of localization is:

$$Coefficient of Localization = \frac\sum_i=1^n (P_i - Q_i)100$$

where $P_i$ is the percentage of workers employed in a specific industry in region $i$, and $Q_i$ is the percentage of all workers in region $i$.

If the coefficient of localization is zero, it means that the industry is uniformly distributed among all regions. If it is one, it indicates that the industry is completely localized or concentrated in one region. If it is between zero and one, it suggests that the industry has some degree of localization or concentration in some regions.

Advantages and Criticisms

The Sargent Florence theory of industrial location has some advantages over other theories, such as Weber's theory, which are based on deductive and abstract assumptions. The Sargent Florence theory uses statistical data and empirical evidence to analyze the actual patterns and trends of industrial location. It also considers the occupational distribution of population as a more important factor than geographical factors, such as transport costs, raw materials, and markets.

However, the Sargent Florence theory also has some limitations and criticisms. One of them is that it does not explain the causes or reasons behind the location choices of industries. It only describes the existing situation and does not provide any guidance or prediction for future changes. Another criticism is that it does not take into account other factors that may influence industrial location, such as government policies, social and cultural factors, technological innovations, and environmental issues.

Conclusion

The Sargent Florence theory of industrial location is a useful tool to understand and measure the spatial distribution of industries. It uses two indices, namely the location factor and the coefficient of localization, to indicate the degree and tendency of concentration or dispersion of industries in different regions or areas. The theory has some advantages over other theories that are based on unrealistic assumptions, but it also has some drawbacks and limitations that need to be addressed.

References

• [Sargent Florence's Theory of Location: Definition, Factors and Criticism]

• [Sargants Theory of Industrial Location (With Criticism) Economics]

• [Write a critical note on Sargent Florence theory of location. - Ques10]

• [Industrial location weber and sargent theory - SlideShare]