Locating Industries in an Unequal Space(An Empirical Study of Sugar Industry in Iran)

Subject Areas : Bi-quarterly Journal of development economics and planning

M. Moghaddam ¹

1 - Assistant Professor, Islamic Azad University Miyandoab Branch, Iran

Received: 2016-03-01 Accepted : 2016-03-01 Published : 2013-02-19

Keywords: : locating, Multiple Logit and Probit model,

Abstract :

Spatial inequality in locating industries is one of the reasons of income inequality of nations. Optimal locating of industries not only leads to optimal use from potential capacities of production, but also minimizes production and distribution costs of commodity and maximizes average income as far as possible. This paper intends to offer an appropriate and applicable model for finding an optimal location for any economic activity. It also tries to find out whether it is possible to optimally determine the location of an economic activity. The method of the study is applied. Due to strategic importance of sugar industries, this paper studies their behavior in Wes Azerbaijan and East Azerbaijan provinces on the basis of previous studies, document analysis and data gathering. The time period of this study is from 1996-2006. The econometrics method of this study is multiple Logit and Probit models using Eviews software. After model estimation, the t-student statistics and Maximum Likelihood Ration were used for the explanation of the results. Then, using different techniques such as Principal Component Analysis and analytical method, the numerical taxonomy of locations with more profitability potentiality was prioritized and the best location for building the plant was determined.  

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