The influence of location on the efficiency of manufacturers in South Africa

Abstract

This article investigates the influence of location on the efficiency of manufacturers in South Africa. Locational decisions are important when entrepreneurs decide on the location of a new plant, as well as for the design of industrial development policies by government and industry. This article considers both the traditional factors that influence location and the modern factors, especially those emphasised by the ‘New Economic Geography’. This is followed by an account of empirical findings of a survey conducted among South African manufacturers regarding the location of their premises and its influence on their competitiveness and industrial efficiency.