Locational Analysis of Industrial Plants at the 9th Mile Area of Enugu State, Nigeria

Locational Analysis of Industrial Plants at the 9th Mile Area of Enugu State, Nigeria.

Abstract

This study examined the locational characteristics of the industrial activities at the  9th  Mile area of Enugu State, Nigeria in order to identify the most important location factors, multiplier effects, and linkages among the industrial plants.

The data analysed  were collected  from relevant sources using mainly the survey research method.  Location  quotient  (LQ), Multiple Linear Regression (MLR) Analysis, and Principal Component Analysis (PCA) were adopted in the analyses of the data.

Primary, secondary and tertiary industrial activities were identified in the area, and secondary activities with LQ of 1.1 are more concentrated than others. Spatially, land spaces and  relief  factors  favoured industrial activities,  especially manufacturing at Ameke than in other clans of Ngwo-Uno, Ifueke, and Nsude.

MLR analysis reveals that 23 predictor variables accounted for 90.0 percent of the total variance in the location of industries.

However, 11 factors were the most significant in  the  decisions to  locate the industrial plants.  PCA reduced the 19 benefits from the industrial plants to 8 underlying dimensions  that  contributed 75.7 percent of the total variance.

Development of infrastructural facilities, social development of the people, and improvement on human environment are the major underlying dimensions.

Increase in the economic and social costs, environmental pollution, and  congestion are the major problems from the industrial plants.

The 15 location problems were reduced to 8 underlying dimensions that together explained 73.5 percent of the total variance.

Shortage  of basic material needs, frequent change in the policy carriers  and  unfavourable  government policies are the most devastating of the location problems.

Table Of Contents

Title Page……………………….i

Certification…………………….ii

Dedication…………………………iii

Table of Contents……………… iv

Acknowledgement……………. ix

List of Figures……………… x

List of Tables………………. xiii

List of Plates……………..xvi

List of Appendices……………… xvii

Abstract………………………xviii

CHAPTER ONE:INTRODUCTION

  • Background of the Study………………………. 1
  • Statement of the Research Problem……….. 2
  • Aim and Objectives……………………………….5
  • The Study Area…………………………………….6
    • Location………………………………………. 6
    • Historical Background of the 9th Mile ……….10
    • Population…………………………….11
    • Relief…………………………………….. 12
    • Geology and Rocks………………….12
    • Soil Formation………………………. 13
    • Hydrology and Drainage……….14
    • Climate…………………………….15
  • ,9 Vegetation………………………………16

1.4.10   Human Activities………………………..17

  • Literature Review……………………………..17
    • Definitions of Conceptual Issues (Industry, Manufacturing, and Development). 18
      • Definition of Industry……………………. 18
      • Definition of Manufacturing…………. 19
      • Definition of Development………………20
      • Indicators of Development………………..21
  • Classification of Industry……………21
  • The Effects of Industrial Location Factors in the Location of Industrial Plants at the 9th Mile Area…….23
    • Raw Material Sources…………………….. 23
    • Market Facilities……………………….. 25
    • Transport Facilities………………… 28
    • Capital……………………………………31
    • Labour Characteristics………………33
    • The Resources of Land………………………35
    • The Attitude of Government……………………37
    • Agglomeration/Deglomeration Tendencies/Economies……….39
    • The Power/Energy Resources……………………….41
    • TheSatisficer Principles or Personal Factors……….. 45
    • Entrepreneurial Ability…………………………………… 47
    • Sales Promotion Agents or Advertisement………………..48
    • Other Factors Influencing Industrial Plants Location……… 48
  • Regional Attractiveness……………………….. 49
    • Availability of Resources………………………. 49
    • Geographical Position/Nature of the Environment……..50
    • The Cost of Production………………52
  • Theoretical Framework………………………53
  • The Research Methodology……………….56
    • Sample Selection……………………… 56
    • Sample Size………………………………56
    • Methods of Data Collection………… 59
      • Questionnaire……………………..59
      • Guided Interview…………………. 62
      • Documentary Information…….62
      • Field Observation…………..62
    • Methods of Data Analysis……….. 63
  • Limitations of the Study…………………64
  • Plan of the Study………………………..65

CHAPTER TWO:THE FACTORS THAT INFLUENCED THE LOCATION OF THE INDUSTRIAL PLANTS AT THE 9th MILE AREA

  • Effects of Raw Materials………………………………………………..67
  • Market Facilities in the Location of the Industrial Plants………. 72
  • Transportation Facilities……………………76
  • Labour Resources……………………………………. 79
  • Government or the State………………………..83
  • Energy/Power Resources…………………………87
  • Resources of Land…………………………………..91
  • Capital……………………………………………………. 95
  • Entrepreneurial Abilities…………………………… 97
  • Satisficer Principles or Personal Factors……..103
  • Agglomeration/Deglomeration Economies…….106
  • Sales Promotion/Advertisement……………….. 109
  • The Relative Position of the Location Factors of the Industrial Plants……. 111
  • Inter-Relationships among the Industrial Plants Location Variablesat the 9th Mile Area……..  123
  • The Influence of the Predictor Variables……………. 125
  • Descriptions of the Significant Variables…………….128

CHAPTER THREE:THE CHARACTERISTICS OF THE INDUSTRIAL PLANTS AT THE 9th MILE AREA

3.1    Classes of the Industrial Plants……. 136

  • Sources of Input Materials and Markets for the Products of the Industrial Plants.. 139
  • Concentration and Location of the Industrial Plants
  • Profitability in the Locations of the Industrial Plants at the 9th Mile Area…….. 149
  • Effects of Costs of Production in the Location of the Industrial Plants At the 9TH Mile Area…….152

CHAPTER FOUR:MULTIPLIER EFFECTS OF THE INDUSTRIAL PLANTS AT THE 9thTHE MILE AREA

  • Benefits from the Activities of the Industrial Plants at the 9th Mile Area….. 176
  • Industrial Plants that Provide Water for the Residents of the 9th Mile Area… 187
  • Indigenous Employment Capacities of the Industrial Plants at the 9th Mile Area….. 187
  • Importance of the Benefits from the Industrial Plants…. 190
  • Inter-Relationships among the Benefits from the Industrial Plants……….. 199
  • Extraction of the Components…………… 201

1.6   Interpretation of the Extracted Components…….. 204

  • Summary of the Underlying Dimensions of the Benefits from the Industrial Plants. 209
  • Relative Contributions of Underlying Dimensions of the Benefits from the Industrial Plant…….. 209
  • Problems from the Activities of the Industrial Plants at the 9th Mile Area……228
    • Relative Effect of the Problems from the Industrial Plants……….239
    • Strategies to Resolve the Problems from the Industrial Plants…….. 241
  • Location Problems of the Industrial Plants at the 9th Mile Area…… 242
    • Relative Position of the Location Problems of the Industrial Plants…….. 251
    • Interrelationships among the Location Problems of the Industrial Plants…… 254
    • Extraction of the Components……………. 256
    • Interpretation of the Extracted Components……… 257
    • Summary of the Underlying Dimensions of the Location Problems of the Industrial Plants…….. 265
  • Relative Effects of the Underlying Dimensions in the Location Problems of the Industrial Plants……. 265
  • Strategies to the Solution of the Locational Problems of the Industrial Plants……. 282

CHAPTER   FIVE :INDUSTRIAL PLANTS, LINKAGES, PROFITABILITY AND THE EFFECTS OF THE COSTS OF PRODUCTION ON THE LOCATION OF THE INDUSTRIAL PLANTS AT THE 9th MILE AREA

  • Industrial Plants Linkages………………….. 284
    • Functional Linkages of the Industrial plants………….. 284
    • Material Linkages among the Industrial Plants……………………… 287
    • Non-Tangible/Information Linkages of the Industrial Plants……… 292
    • Linkages among the Various Units/Departments of Production Processes of the Industrial Plants………..298
  • Linkages between Multinational Corporations (MNCs)  and Domestic Industrial Plants……………. 301
  • Linkages between the Industrial Plants within and Outside Nigeria……. 303

CHAPTER    SIX : SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

  • Summary of Findings……………..306
    • Classes, Distribution and Concentration of the Industrial Plants……………306
    • Location Profitability of the Industrial Plants in the Study Area……….307
    • Factors of Industrial Plants Location………………..307
    • Relative Influence of Factors Affecting the Location of theIndustrial Plants……… 310
    • Multiplier Effects of the Industrial Activities in the Area……………310
    • Industrial Linkages in the Area…………311
  • Implications of the Findings……………………313
  • Recommendations…………………………………314
  • Suggestion for Further Research…………….. 316
  • Conclusion…………………317

REFERENCES………………319

APPENDIX………………… 336

Introduction

Background Of Study

Industry is an important segment of the economy, the collapse of which will result in the collapse of the economy (South East Queensland (SEQ), 2001; Judy, 2002; and Slogett and Wood, 2005).

The activities involved and the result of industrial processes permeate all aspects of society because it is all-encompassing.

It improves trade balance because home-grown products, substitute imports, thus saving valuable foreign exchange (Ekholm, 2003), and the more the foreign exchange earned the better for the nation (Cortright, 2001a, Inamura, 2003, Gates, 2006).

Industry generates benefits such as the creation of wealth via the multiplier effect, prosperity, employment and is a vital component in foreign trade.

Industrial activities can operate and export to gain more foreign exchange that structurally diversifies the economy, which grows faster and becomes more resilient. It is one of the processes of spatial transformation especially with migration and information flows.

There has been traditionally wide support for the leading role of manufacturing in generating wealth and income, which in turn can support expansion in other sectors (Mano and Otsuka, 2000; Feldman, Aharonson and Baum, 2006). Development is based upon growth, which results from further industrialization and increased industrial production.

References

ABOYADE, O. (1968): “Industrialization from zero Base: The Case of Nigeria’s New Federal Capital Territory”. African Urban Quarterly, Vol. 4, Nos. 1 and 2, pp.   69 – 81.

ABUMERE, S.I. (1979); “Multinationals, Location Theory and Regional Development: Case Study of Bendel State of Nigeria”. Regional Studies, Vol. 12, No 6, pp. 651-664.

ADEGBOLA, K. (1983): “Manufacturing Industry”, in Oguntoyinbo, J.S. et al (eds).A Geography of Nigerian Development (2nd Edition). Heinemann Educational Books, Ibadan, pp. 326-359.

ADEPETU, A. A. (1978): “Promoting Rural Development through Population Resettlement”, in Ajaegbu and Morgan (eds), Geographers and Planning in Nigeria. Proceedings of N.G.A, Jos, April 2 – 8.

ADINNA, E. N (1991): The Relationship Between Rural Industrialization and Rural Development in Anambra State. Unpublished Ph.D. Thesis, University of Jos, Jos.

AGBOLI, M. and UKAEGBU, C.C. (2006): Business Environment and Entrepreneurial Activity in Nigeria: Implications for Industrial Development”. The Journal of Modern African Studies, Vol. 44, pp. 1-30.

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