Dynamic Locational Phases of Economic Activity in the Globalized World

This book clarifies the mechanisms of economicglobalization in changing industries' locations and shows how industries' locations have changedthrough those mechanisms. First, the book deals with the retailing industry.Introducing the concept of a contactprice into the market area analysis, it is shown in Part I that retailers'market areas and prices are changed in different ways by a reduction oftransportation costs. The mechanism of these changes is explained by checkingthe contact prices at apexes of the retailers' market areas. Then the book movesto the manufacturing industry and deals with a firm's production process. Part IIof the book shows the manner in which the production volume of factories withinan agglomeration is decreased as the number of factories within theagglomeration increases. Subsequently, considering the fact that many productionfactories depart from agglomerations to other sites to reduce production costs,a method of searching for a factory's new site is proposed in which a firm can seekout an optimal location of a factory in a short period of time. By referring toa chaotic phenomenon, a firm sets a locationprospective area in a large geographical area and selects an optimallocation within that area. In the third part of the book the city system is thefocus. Part III elucidates the theoretical formation of a city system andanalyzes structural changes of a city system due to a reduction oftransportation costs. The mechanism of the change is explained by a flexible market area theory which studiesa city system by using the market areas established in the free-entry equilibrium.Then, the economic relationships between the cities within a city system areexamined from the point of view of the land rent in the cities' areas. Thisanalysis shows the influences of a change in the largest city on other cities. Finally,the relationships between a city system and regional performance are examinedusing real data.The examination shows that the city system reveals the regionalperformance.

List of contents

Part I Location theory of retailingindustry.- 1 Market areas of retailers in linear space.- 1.1 Formationmechanism of monopoly retailer's market.- 1.2 Emergence of competition andcompetition styles.- 1.3 Equilibrium price and market established in linearmarket.- 2 Market areas of retailers in plane space.- 2.1 Shapes of marketborder between two retailers.- 2.2 Market area in spatial free entryequilibrium.- 2.3 Effects of variety of items on retailer's market situation.-2.4 Effects of freight rate on items and market of shopping center.- 3 Marketanalysis by Contact Price Curve.- 3.1 Derivation of spatial free-entryequilibria.- 3.2 Analysis of spatial free-entry equilibria by using contactprice curve.- Part II Location theory of manufacturing industry.- 4 Change offactory's production in agglomeration.- 4.1 Formation of industrialagglomeration.- 4.2 Relationship between number of factories and agglomerationeconomies.- 4.3 Spatial departure of production processes from agglomeration.-5 Location theory of factory in the globalized world.- 5.1 Factory's locationin the globalized world.- 5.2 Derivation of the profit function of a firm.- 5.3Settlement of location prospective area.- 5.4 Firm's profits and revenues ofcountries in different corporation tax rates.- 5.5 Location power of thecorporation tax and the interest rate.- 5.6 Effects on factory's location ofindustrial park and industrial complex.- Part III Location theory of citysystem.- 6 City systems built on basis of economic activity.- 6.1 City systemsconstructed on basis of market area theory.- 6.2 City system built by usingcities' production functions.- 6.3 Change of city system in the real world.- 7Analysis of city system by using cities' land rents.- 7.1 Assumptions andframework of analysis.- 7.2 Land rent and capital amount in city.- 7.3 Analysisof Land rents and production amounts of cities in city system.- 7.4 Influencesof change of freight rates and production efficiency on cities.- 8 City systemas a location factor.- 8.1 Role of city system in firm's decision making oflocation.- 8.2 Numerical index of characteristics of city system.- 8.3Estimation of social health of prefectures in Japan.- 8.4 Relationships betweencity system and prefecture's performances.- 8.5 City system as a locationfactor.- Appendix.- References.

About the author

Toshiharu
Ishikawa, Faculty
of Economics, Chuo University, Tokyo, Japan

Summary

This book clarifies the mechanisms of economic
globalization in changing industries’ locations and shows how industries’ locations have changed
through those mechanisms. First, the book deals with the retailing industry.
Introducing the concept of a contact
price into the market area analysis, it is shown in Part I that retailers’
market areas and prices are changed in different ways by a reduction of
transportation costs. The mechanism of these changes is explained by checking
the contact prices at apexes of the retailers’ market areas. Then the book moves
to the manufacturing industry and deals with a firm’s production process. Part II
of the book shows the manner in which the production volume of factories within
an agglomeration is decreased as the number of factories within the
agglomeration increases. Subsequently, considering the fact that many production
factories depart from agglomerations to other sites to reduce production costs,
a method of searching for a factory’s new site is proposed in which a firm can seek
out an optimal location of a factory in a short period of time. By referring to
a chaotic phenomenon, a firm sets a location
prospective area in a large geographical area and selects an optimal
location within that area. In the third part of the book the city system is the
focus. Part III elucidates the theoretical formation of a city system and
analyzes structural changes of a city system due to a reduction of
transportation costs. The mechanism of the change is explained by a flexible market area theory which studies
a city system by using the market areas established in the free-entry equilibrium.
Then, the economic relationships between the cities within a city system are
examined from the point of view of the land rent in the cities’ areas. This
analysis shows the influences of a change in the largest city on other cities. Finally,
the relationships between a city system and regional performance are examined
using real data.The examination shows that the city system reveals the regional
performance.

Product details

• Authors: Toshiharu Ishikawa
• Publisher: Springer, Berlin
• Languages: English
• Product format: Paperback / Softback
• Released: 01.01.2018
• EAN: 9789811091827
• ISBN: 978-981-10-9182-7
• No. of pages: 152
• Dimensions: 156 mm x 237 mm x 11 mm
• Weight: 274 g
• Illustrations: XIII, 152 p. 70 illus., 25 illus. in color.
• Subjects: Social sciences, law, business > Business > Economics; B, Economic Policy, Economics, Economics and Finance, economic growth, Regional Studies, Political Economy, Industries, Regional/Spatial Science, Regional and Spatial Economics, regional economics, Management science, Spatial economics, Industry & industrial studies, Political Economy and Economic Systems, Political Economy/Economic Systems