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Determination of a Factory's Location in a Large Geographical Area by Using Chaotic Phenomena and Retailers' Location Networks

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  • Toshiharu ISHIKAWA

    (Faculty of Economics, Chuo University, Tokyo, Japan)

Abstract

When a manufacturing firm plans to construct a factory, the firm searches a factory's location in a large geographical area. The manufacturer does not determine immediately the factory's location site since the manufacturer cannot have enough information about the economic situation of possible location sites. Thus, the manufacturer reduces the sphere of searching area in a manner of step by step. In this firm's searching processes, the following four steps should be taken: 1) Decision of a prospective region, 2) Selection of a possible area in that region, 3) Selection of a city in that area, 4) Determination of a site in the city. This paper suggests that in the first step, chaotic phenomena have the possibility to be used to identify a prospective region, and then, the retailers' location networks located in the region play a significant role in the selection of a possible area in the region. This paper elucidates how a firm determines a factory's location within a large geographical area.

Suggested Citation

  • Toshiharu ISHIKAWA, 2009. "Determination of a Factory's Location in a Large Geographical Area by Using Chaotic Phenomena and Retailers' Location Networks," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 2(3(7)), pages 141-150.
    • Handle: RePEc:wun:journl:tje:v02:y2009:i3(7):a04
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    References listed on IDEAS

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    Cited by:

    1. Toshiharu Ishikawa, 2015. "Location power of the corporation tax and the interest rate in the globalized economy," ERSA conference papers ersa15p52, European Regional Science Association.
    2. Toshiharu Ishikawa, 2014. "Effects of the corporate tax rates on firms' location selections through the trasfer pricing system," ERSA conference papers ersa14p16, European Regional Science Association.

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    More about this item

    Keywords

    Factory location; Retailers' location network; Monopolistic competition; Chaotic phenomenon;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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