A Mathematical Model for the Location of Industry in Developing Areas

The major aim of the model developed in this paper is to assist decision makers in identifying the industries which are likely to be attracted to underdeveloped regions as a result of specially devised government policies. The effect of these policies in achieving objectives, such as the reduction of unemployment and underemployment, will differ from industry to industry. Thus it is most important to investigate the production function parameters of each of the industries which are likely to be attracted to these regions, so as to determine to what extent the devised policies will achieve their declared objectives. This paper shows that no single policy can be applied for all industries. It is therefore necessary first to identify the industry and thereupon to devise the proper policy that will advance the overall set of objectives. Finally, we describe in a graphical form in the appendix the gaming process of the on-the-job-training programme which takes place between the trainee and the employer through time.