Mostly for choice an industrial location in the market economy, Companies prefer to the optimum location which can maximmize the investment yield and, have the more riskless charge in the range of the purchasable information. therefore, they willing t...
Mostly for choice an industrial location in the market economy, Companies prefer to the optimum location which can maximmize the investment yield and, have the more riskless charge in the range of the purchasable information. therefore, they willing to locate the dense districts which already have market, employee and infrastructure, this is a natural appearance. because they can expect economies of concentration.
The Total Amount of Regulation of the Industrial Location is carried into practice to decentralize population in Capital region by MOCT(Ministry of Construction and Transportation) since 1994. this permitted factory construction within each building quantity, which was decided annually by An administrative district. but this regulation features no effects, since have mistakes of the issue of deconcentration, no reasonableness to itself, regional inequity in the Capital region and so on.
This study focuses upon the Total Amount of Regulation of the Industrial Location in Capital region. the purpose of this paper is to find a kind of objective logic by surveying the conditions. of the damaged companies by this regulation.
For this survey, most of the response companies were investigated to be small or middle scale, and have been managed for the many years, therefore, they are difficult to relocate their factories.
when they failed to locate their factory by the above regulation, only 2% were responsed to considering relocation. and then, if they are aided sufficiently by the central government, 22% were to think about that. these result find that the policy direction for the purpose of developing the local manufacturing firms are not practical. ; most of firms were deciding to apply for destruction permission in the future, so this system have only the temporal effect.
To conclude, the company can not cope with market conditions under the Total Amount of Regulation and then, this system can not help expanding the local industrial capacity.
The total amount of regulation system has five basic problems as follows;
first, the policy direction, that is, the decentralization in capital region ought to be reconsidered in basic side.
second, the population centralization is not due to the industrial location, because the structure of the manufacturing industry is much different from in 1960s.
third, it is impractical that the regulation of the Industrial location can make moving factories to the local area. that is already proved by survey findings.
forth, this system is a kind of duplicate, excess regulation. In addition to decentralization policy, the factory construction by size and type of industry in capital region is restricted by the individual law.
fifth, this regulation is a sort of distribution system. so this didn't reflect well the real demand of industrial location and the needs of local government.
In point of fact, decentralization policy to itself don't have a rational basis, and the total amount of regulation don't give rise to both population dispersion and local development. so that regulations of industrial location or construction will consider more the side of the environmental protection or the pollution issue than the concentration in capital area.
the best alternative proposal is that the total amount of regulation is abolished completely. but the provinces will resist this proposal. so that will be considered for long and a thorough reorganization will be needed.