This research examined the industrial development of the Punjab in the perspective of spatial distribution and functional pattern. This research is based on sample areas which have selected industries in Punjab. In order to achieve the objective of the research use Arc GIS and map processing to show the selected industrial areas with respect to classification and also data collected from various sources like Punjab development statistics, Economic Survey of Pakistan and census of manufacturing industries. With the help of this show the geographic concentration of industries in districts and classify diversification of industries according to location, area, production, scale of industries and employment.
The term industry is used to describe a very specific business activity that influences the geographical factors of location and development with the use of raw material and then distributed at the finish products. Industries bring up to the production of economic good and services. Industrialization of industrial development also helps to build the international image of the country because if a country has industries and technology its role and its position in the economic domain increases it plays more significant role in the economy at the international level. This industrialization also facilitates trades because if country produce boards products then send both products abroad and earn foreign exchange.
Industry also helps to reduce dependence on others if any country has not industry then it will never progress and not compete the international level and rely on others for small things and even small day to day use items and also for building economy and always looking to other for help in any situation.
Industry is the economic activity that concerned with the procedure of making goods in factories/chimneys with the help of raw material and heavy machines, manufacturing. In the beginning world has an agrarian time period at 18th to 19th century, then change the agrarian economy to machine and industries called the industrial revolution.1700’s; the beginning of manufacturing was just using hand tools or basic machines. Developments of the steam engine industries' mark a major history after these machines make progress. Iron and textile industries developed and increased a large number of varieties and volume of manufacturing goods and improved living standard. Through these give employment to the others and reduce poverty.
Due to encourage and increase in activities increased in commercial, foreign and domestic. That all conditions of industrial revolution changing the people from rural to urban and industries provide high technology that automatically increases the economy and move into the world of a new era. After the 20th century world becomes more advanced that discovered new firms and digital technologies which helps people more economical and support industries that make world gross domestic production increase.
Primarily agricultural countries like Pakistan even in this area industrial development helps because for good agriculture need import and for bringing import to agriculture industry plays a vital role e.g. fertilizers use for agriculture and if Pakistan have not fertilizer industry than Pakistan import fertilizer and spend lot of foreign exchange that make the country backward and less developed. Even for agriculture; how to harvest the crop use modern techniques and also help through the industry turn raw material in to finished products and these products earn more foreign exchange.
Punjab has lack of coastline despite of this Punjab has a more industrialized province of Pakistan. Punjab manufacturing industries produce textiles, cement, sugar, agriculture machine, machine products, plastic, auto parts, metal, bicycles and rickshaws, sports goods, I.T, food and beverage and various other goods.
Industrial structure and cluster have different pockets that varied according to geographical location, competitive labor skills and historical backgrounds. The overall industrial structure of Punjab is a combination of both Large and Small Industrial Estates. But the Small manufacturing estates have huge potential for development that is vital for the industrial growth of the province.
Punjab has an agrarian areas and it playing a leading role in agricultural production. The economy of Punjab is depending on agriculture, although industry has also a significant contribution. Punjab contributed almost 68% in annual food grains in the production of the country. Estimated 5.1 million acres is cultivated in Punjab that fulfill the requirement.
In 2003 Punjab produce 90% manufacture of the paper and paper goods, 71% manufacturing production of the fertilizers, 69% of the sugar and 40% of cement. In 2000 the numbers of reporting factories are 2364 and in 2015 the number of reporting factories are 3590 and the small and cottage industries include. There are 39,033 small and cottage industrial units in 2003 in Punjab. Divisions of Lahore and Gujranwala have the largest density, small light engineering units. Sialkot district is famous in surgical instruments, sports goods and cutlery goods. Punjab province is also a rich in minerals, which deposits of coals, gas, petrol and rock salt that are the second largest mine in the world. Dolomite, silica-sand and gypsum over hundreds economically valuable projects is running under the Punjab Minerals Development Corporation.
Industrial activities depend on industrial geography. The analysis of approaches and form of manufacturing geography is depends on locations. Location change the implication of local development and theme of the industries. Each factory stands in a certain spatial relationship to other factories and economic phenomena and the participation of every industry and development makes it location decision (Hayter 1997). Industries may be concentrated or dispersed, it may also incline towards regularity or taken more random form. Weber(1990) discussed the problem of location of according to cost of minimization. The main factors of industries, according to location or cost of labor and transportation and one of the additional local factor is agglomeration (WEBER 1929). Walter Christaller (1933) was primarily not interested in an industrial location. In Punjab all of the districts plays a significant role in industrial development and growth. Lahore is the major of the industrial city because it is located at the canal bank and river Ravi and other industrial areas is Sundar Industrial Estate that is located approximately 45Km from the center of Lahore. There are 255 factories in production in October 2012 and 345 in 2013. Rawalpindi district is specialized in nine sectors. Two industrial estates of Rawalpindi district are SIE TAXILA and MIE Gujar Khan. SIE Taxila is located at about 7km from Taxila and MIE Gujar Khan started at G.T road Gujar Khan city that approved for chemicals food industries and engineering.
Industries cover a number of plots or sheds. If the area is large then it provides a number of plots that can be utilized for industries. Punjab is the largest province of Pakistan and industrial share is higher rather than the other provinces of Pakistan. In Punjab Bhawalpur is the largest district, according to the area, but only 252 industries in 2012, because the two-third part of it covered by the Cholistan desert. The district of Rajan Pur area is 12,319 Sq.Km.and most of them are covered by forest and only 102 industries are located on Rajanpur. It means industrial located in highly populated and development areas and agriculture have been done in less developed areas.
Industrial production is measured by the monthly row material output of the industrial sector, which impact on the economy. It includes the value of production and by production, sake production from industrial wastes, receipts for wastes and used goods, finished, the semi finished products and value of fixed assets produced by investment. In Pakistan industrial production increased 1.72% in September 2016. Average industrial production is 2.54% from 1990 until 2006 and reaching an all time high 35.15% in April 1991 and -21.82 is recorded low in April of 2000. The Punjab production share is higher in Pakistan and makes the Pakistan economy is higher. The production of cotton yarn is 70.50% vegetable ghee is 48.80%, cement is 46.20% in 1999 to 2000. The production of cotton yarn is 28.20% ,vegetable ghee is 58.60%, cement is 53.20% in 2013-2014. According to district vise production of Lahore is higher and after this Rawalpindi, Multan and Faisalabad industries share in production is more in Punjab.
Yulin Zhao and Mudassir Mohammad (2013) research on Pakistan industry agglomeration has extended and diversified in recent year. For seen the development of industries uses census of manufacturing industries. CM1 set for the period of 2000 to 2012 and Ellison Glaser Index method has been applied for finding out the increment of industries throughout the sample time period. Not boost up the manufacturing industries in various region of Pakistan due to social, political, economical problems and some other reasons that make the damages in economic activities. The cluster of industries in an area of are very important for gain the interest and external concentration of economics. Along with this some industries have high technologies which support the excess of economics. A set of time period understanding the development in industrial transformation that extend into ideas along the several implication policies.
Dominic de Laura and Arbia Guelph and De Groot Henry L.F (2007) examined that measuring the spatial distribution of economic activity of Italy for the year 1991 and 2001 using indices such as Krugman specialization Index, the Hischmann Herfindahl index and Ellison- Glaser Index also use exploratory spatial data analysis for identifying the sector of manufacturing industries as well as services. To measure the geographical concentration of primary and traditional industries, extend the analysis to take spatial dependence into account. The dominate difference occurs between the geographical concentration of industries and sectors. The result of exploratory spatial data analysis exposes the well defined cluster of economic activities. Campus Sicilian, Prothero Richard (2012) determined the local authority areas of industrial specialization and geographical concentration. For the investigate of the spatial pattern of industry in Great Britain used the Moran’s statistics and location quotients are using data tools and maps and Arc GIS for exploring the data and identify the location of industries. Data used from the Business register and employment survey. The result indicates the economy impact on productivity and employment.
Combs Pierre – Philippe and Henry G. Overman (2003) has the aim of the spatial data sets of European union, how the pattern location of industries are changed over time, contrast shows the nature of agglomeration and dispersion forces in a particular location of the United State. Krugman specialization index and Ellison Glaser Index are used to measure the industrial aggregation, employment, value added or any other activities. Data tools, maps, Arc GIS are used in the shown of data of different industrial location.The result suggested that each spatial data set is help to become more high on a national level of industries. Through the empirical work, much of goals have been achieved, but a lot of work has been remain.
A Burki and A. Khan Mushtaq (2010) determined the geographical concentration and the nature of spatial inequality of manufacturing industries in Pakistan. Use the Ellison and Glaser Index show the randomly dispersed industry in districts and provinces of Pakistan. Data derived from Census of manufacturing Industries (CMI) 2005-2006. with the help of a mapping of the district as spatial units suggested that the distribution of industries are not uniform and highly in the geographical concentration area are high road density, skilled labor force, large market. The econometric result confirms that a wide spread of manufacturing industries is the reason of increase population size, higher road density and skilled trained workers promote geographical concentration of manufacturing industries. In 1995-96 to 2005-06 productivity growth not flowing in all industries rather than the food, beverage and tobacco industry. High scale local economy, industries mostly are in cluster form that effect on Pakistan economy. Mudassar Muhammad and Yulin Zhao (2013) examined that the changing in industrial transformation and evaluation will change the overall economic base. The rapid change in technology and innovations at global level also effected on local economics for maximum gain. Pakistan industries have analyzed the primary, secondary and tertiary structure of the industry. Industrial structure trend adjusts from 1947 to 2000 with their characteristics and features of evaluation stages.Structural changes of industries are occurring according to its vast resources, human capital and prevalent economic features that optimize the industry and stay competitive.
Zafar Tanveer (June 2011) determined the development of industrial estates of the Punjab in the regarding of spatial functional analysis. This research has selected sample based area of industrial estates of Punjab. The data were collected from various sources for achieving the objective of the research. Selected sample unit of industrial estates on the bases of the important characters and different aspects has been analysed at micro level. By measuring location, quotients, regional diversification and the spatial concentration of 24 sectors out of 36 districts of the Punjab, Pakistan. Geographic concentration of economic activities is found an important blinker which reflects that the specialization in economic activities plays an important role to identify the local economic strengths and weakness of the Punjab. Quotient index, Herfindahl index of sectorial Concentration and the Index of Regional Diversification developed by Duranton and Puga (2000) are standardized techniques that are used to explore the spatial functions patterns of industrial estates of the Punjab.
Nagata Hiroyasu, Tainaka Kei-ichi and Yoshimura Jin (2008) researched that the dismantled or built of factories and plants for various complex reasons. Understanding the process of dismantlement and construction of factories is one of the complicated problem in economy. Show the spatial temporal changes through the simulation model and explore spatial temporal changes of factories at Hamanatsu city in Japan. While the number of factories increases smoothly before collapse of Japanese stock market in 1990. After these number of factories decreased rapidly. By auto-correlation method of statistics and spatially structure of factories are analysed. After Japan collapse factories are not crowded or aggregated but more or less structures are formed. When the industrialization is not yet fully developed factories are randomly distributed rather than the aggregation but after the collapse factories become aggregated form. Illustrated that the construction and dismantlement process of factories can be qualitative that explain by the contact process which is simple ecological made. The result is that relation between distributed of factories and spatial temporal change in Hamamatsu industries.
O. Lukman Ayeyemi (2013) research on small and medium scale business enterprises (SMEs) are high potential industries for manufacturing sector. In the rate of industrial development nation considering a case of Nigeria which has absences of basic social amenities, infrastructure, and low interest source of financing and have challenged the industrial development how to improve the technologies and which strategies have been designed for the new small scale business enterprises (SMEs) with respect to Nigeria. Qualitative and quantitative research have been included, 600 questioners have been done by managers and owners of small scale business enterprises (SMEs) and data analysed by Test-re-Test reliability, regression, Cranch alpha test. Total 517 questioners were successful that result, according to gender, age, education, experience, performance rate of the employees of small scale business enterprises (SMEs). The result of this small scale business enterprise (SMEs) owner ensures business profitability, and ability to manage the situation, despite of this still no special techniques used small scale business enterprises (SMEs) employees for manufacturing. But all of these Nigeria has huge deficiencies in the present economy. It was recommended to government provide basic facilities and positive atmosphere for business development that actualized the aim of Nigeria government. J. Scott Allen and
C.Cindy Fan (2003) explore the issue of industrial agglomeration and its relationship between to economic development and growth in the developing countries of East Asia. Find a positive relationship between agglomeration and economic performance on the role of formal and informal institution in East Asia, but the special focus on the case of China. Because in recent trend toward economic liberalization as contrast to the China history of socialism. Through Herfindahl index investigates that a positive relationship between industrial agglomeration and economic performance in China. Various kind of manufacturing sectors are depend on spatial agglomeration and productivity. Day Jennifer and Ellis Peter (2012) determine the distinguish between the urbanization processes and on the local economy and their effect of its on selected manufacturing sectors in Indonesia and how the geographical concentration of manufacturing sector obstructs or help in the economic growth. The influence or urbanization and economy in growing, manufacturing sector investigated or concluded by Cross Area Panel Growth Regression (CAPGR) and Ordinary Least Square (OLS). Urbanization is not contributing to the growth of manufacturing sector, but economy, not only growth but also depend on manufacturing. The new and geographically-isolated growth of manufacturing sectors are not feasible.
Liu Zhiqiang (2013) determined that the China economy grow rapidly and accumulation of wealth but still have problem . For the economy reform China span over thirty years and this period need more attention to multiple underlying processes and help to make mitigate problem less. For examined the particular spatial pattern of the textiles, telecommunication, food manufacturing and electric industries and measure the overall degree of geographical concentration use the combination of indices like local Moran’s Index and focal location quotient. The major objective is to concentrate or manufacturing industries activates and the result of this the capital of state economy from industries substantial impact on the location and economy of China.
Renoldo Lucir, ALVES, COSA D AMAQUES (2010) research on the Brazil capital, international world division labor and growth of industries and services has been changed at international level from the two decades. The growing processes of urbanization and industrialization is occurring in the southern region of Brazil with a different investment and sector profile related to the local resources. The location quotients and the shift share analysis techniques use for the analysis of spatial distribution of economic activities in the metropolises of southern Brazil from 2000 to 2010. in southern Brazil from 2000 to 2010 employed people grew 29.59%. During the analyzed period comparison the various activity sectors and rank them accordingly to the importance of weight in term of total employment and growth dynamics of the sector. The tertiary sector are found in the metropolitan area of the three states and the North central Paranaense. The mesoregions are relevant to primary activities. The spatial concentration of industries and service in south Brazil and their employment distribution related to less intensive knowledge of urban sectors and low technology industries. The large companies contribute to the national capital through in parallel of these other sectors, industries continue to significant concentrate in metropolises, and a small amount of employing people highly include in that economic activities that still depend on the metropolises.
Naude Wim and Szrmai Adam (2012) examined that the structural transformation of traditional economy dominated by primary activities into modern activities where high productivity is manufactured. The structural transformation of manufacturing assumes an important role in defining the features of economic development. UNU-WIDER/UNU-MERIT project of the industries discussed the past and present roles of the manufacturing sector and structural changes of industries and facing new challenges in industrial policy. The new challenges are rising in Asian economies, new opportunities for resources based industries, integration into global value changes in manufacturing industries, reduce of poverty through the growth of manufacturing industries, creating an adequate system of financial intermediation and how to give respond to the menace of global warming and climate change. Structural transformation of developing countries requires a technological manufacturing sector for developing that that can deliver high quality employees that not only lead the national economy but also compete in the international division labour and also gain the global trade. In this regard industrial policy can make value able contribution in the past and future challenges.
Gaoxiaona and Mayanji (2008) explain the country-level industrial development and structural changes in the old industrial base of China. In Liaoning province after the analysis of GDP per capita and GDP per area the result indicates is population size, land use intensity and economic development are the same in each country. The location of each country reflects the spatial differences of industrial development and specialization intensity of industries. In the southeast economic development is higher that the northwest of Liaoning that affect the country-level economy. The main factors that are the influences of country level progress are economy system, industrial formation knowledge and technology dissertation, population labour force, transportation, capital input level. Through the SPSS, k-mean analysis has been done for the cluster analysis. Liaoning classified 44 counties in finding the difference among them economic indexes and show industrial structure and economic development gaps among them countries geographical space. In Liaoning province industries is an important approach to urbanization for counties. In the northwest agriculture proportion is higher than the southeast that take a longer time period to make industrial, urbanization and modernization of northwest of Liaoning.
Punjab is the most inhabited and famous province of Pakistan. Punjab is the second largest province after Baluchistan. Punjab is the most populous province with an approximately 101, 391, 00 population in 2015. Punjab is the land of five rivers and known as the granary of eating. It is also the lifeline of Pakistan. The total area of Punjab is 205,344 km. square and 25.8% total area of Pakistan. Lahore is the capital of Punjab and other several major famous cities are Sahiwal, Rawalpindi, Multan, Faisalabad, Gujranwala, Bahawalpur and that are also major industrial cities of Pakistan. Punjab has 36 districts and 133 Tehsil.
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