Scientific and practical journal
УКР   ENG
Regional Economy
   



Journal Regional Economy -- re2022.02.005

Repository of Institute of Regional Research UDC 352.338.486:379.8; JEL L83, J13
Stadnytskyy, Yu. I., & Bashynska, Yu. I. (2022). Systemnyy pidkhid do obgruntuvannya optymal'noho rozmishchennya vyrobnytstva blaha [A systematic approach to substantiating the optimal location of production of goods]. Rehional'na ekonomika - Regional Economy, 104 (2), 5-16. DOI: https://doi.org/10.36818/1562-0905-2022-2-1. [in Ukrainian].
Sources: 16

Authors



Stadnytskyy Yuriy Ivanovych

Doctor of Economics, Professor

Leading Researcher of the Department of regional ecological policy and environmental management of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: stadnytskyj@ukr.net, yurijs@tu.kielce.pl

Webpages:



Bashynska (Zavalyona) Yuliya Ivanivna

Ph.D. of Economics

Junior Researcher, Scientific Secretary of the unit of the Department of regional ecological policy and environmental management of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: yu.bashynska@ukr.net

Webpages:

Resume

The article proves that an isolated, non-systemic approach to the analysis of potential sales markets when justifying production placement may not give the right result, since the spot will not be guaranteed to be the best for placement, because even in simple situations there are many other options for targeting sales markets when justifying placement production. It determines that with a systemic approach, variants of combinations of locally optimal production sites, the total production capacity of which is equal to the general (systemic) demand, will be compared. For each attractive place of production, a locally optimal place of production is determined from the list of existing attractive places of production. The article emphasizes that locally optimal locations cannot be directly compared with each other, as their choice is determined by orientation on different potential sales markets. With three potential sales markets, there will be 5 options for combinations of locally optimal locations (1 option, which involves placing production in three spots, 1 option involving the placement of production in one spot, 3 options involving the placement of production in two spots), which form competing variants of systemically optimal spots for the placement of production. The application of the proposed systemic approach to the justification of production placement and the corresponding methodology is demonstrated on a conditional example with geographic coordinates. The systemic approach offered in the article for justifying the optimal location of the production of a single good can be adapted to a more complex or compound situation when the optimal location of the production of several goods is justified at the same time (including when one of the goods is used for the production of other goods). The most important advantage of the systemic approach is that it can be used in different branches of industry and agriculture as well.

Keywords:

location of production, sales markets, region, competition, efficiency, technologies

References

    
  1. Beckmann, M. (1968). Location Theory. 1st edition. New York: Random House.
  2. Weber, A. (1929). Theory of the location of industries. Chicago: University of Chicago.
  3. Danylyshyn, B. M., Chernyuk, L. H., & Fashchevskyy, M. I. (2007). Prostorova orhanizatsiya produktyvnykh syl Ukrayiny: mezo- ta mikrorehional’nyy riven’ [Spatial organization of productive forces of Ukraine: meso- and micro-regional level]. Vinnytsia: Book-Vega. [in Ukrainian].
  4. Kravtsiv, V. S. (2007). Rehional’na ekolohichna polityka v Ukraiyni (teoriya formuvannya, metody realizatsiyi) [Regional environmental policy in Ukraine (formation theory, implementation methods)]. Lviv: IRS of the National Academy of Sciences of Ukraine. [in Ukrainian].
  5. Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M., & Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): a review. International Journal of Surgery, 78, 185-193. DOI: https://doi.org/10.1016/j.ijsu.2020.04.018
  6. Sheppard, E., & Barnes, T. (2017). The capitalist space economy: geographical analysis after Ricardo, Marx and Sraffa. London: Routledge. DOI: https://doi.org/10.4324/9781315747743
  7. Blaug, M. (1979). The German hegemony of location theory: a puzzle in the history of economic thought. History of Political Economy, 11(1), 21-29. DOI: https://doi.org/10.1215/00182702-11-1-21
  8. Blaug, M. (2018). Economic theory in retrospect. 5th edition. Cambridge: Cambridge University Press.
  9. Brown, D. M. (2005). The location decision of a firm: an overview of the theory and evidence. Papers of the Regional Science Association, 43(1), 23-39. DOI: https://doi.org/10.1111/j.1435-5597.1979.tb01073.x
  10. Fujita, M., & Krugman, P. (2004). The new economic geography: past, present and the future. Papers in Regional Science, 83(1), 139-164. DOI: https://doi.org/10.1007/s10110-003-0180-0
  11. Fujita, M., Krugman, P., & Venables, A. (1999). The Spatial Economy: Cities, Regions and International Trade. Cambridge: MIT Press. DOI: https://doi.org/10.7551/mitpress/6389.001.0001
  12. Krugman, P. (2010). The new economic geography, now middle-aged. Regional Studies, 45(1), 1-7. DOI: https://doi.org/10.1080/00343404.2011.537127
  13. Hirsch, S. (1967). Location of Industry and International Competitiveness. Oxford: Oxford University Press.
  14. Torre, A., & Rallet, A. (2005). Proximity and Localization. Regional Studies, 39(1), 47-59. DOI: https://doi.org/10.1080/0034340052000320842
  15. Stadnicki, J. (2018). Lokalizacja produkcji wykorzystującej technologię druku przestrzennego. [Location of Production Using the Technology of Spatial Printing]. Zeszyty naukowe Politechniki Śląskiej. Seria: Organizacja i zarządzanie – Scientific Papers of Silesian University of Technology. Organization and Management Series, 118, 541-554. DOI: https://doi.org/10.29119/1641-3466.2018.118.41 [in Polish].
  16. Stadnicki, J., & Terebukh, A. (2020). Classification of benefits by the criterion of factors of the location of production as a tool for management of the spatial organization of the economy. Management and Production Engineering Review, 11(4), 491-502. DOI: https://doi.org/10.24425/mper.2020.136117


Web Master P. Popadiuk