International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development


International Journal of Multidisciplinary Research and Development
International Journal of Multidisciplinary Research and Development
Vol. 4, Issue 8 (2017)

Informal localization in recycling businesses: Reconciliation Hotelling Rule and Reilly’s law


Dr. Sukanta Saha

The theories on location economics refers that informal localization does not develop arbitrarily. There are significant economic factors that influence formation of a cluster of industry or group of industries and businesses in particular spaces. The same holds true for the two informal localized businesses in our discussion. It is worth to mention that the business in one location within a cluster with repeated transactions among themselves promote better coordination, trust, and informal linkages between businesses, efficiency, effectiveness, flexibility, management linkages in partnerships and alliances, and many others. The present paper is an effort to detect the contributory economic factors that explain the formation of informal business clusters in the developing nations. The study considers two important clusters of recycling businesses over used commodities, namely street trading activity in second-hand garments near Girish Park and second hand furniture in Bowbazar in Kolkata, West Bengal. The paper is a mere effort to investigate whether the Harold Hotellings Principle of Minimum Differentiation and William J. Reillys Law of Retail Gravitation are able to explain the spatial clustering of the informal sales outlets of these particular two street-trading activities in Kolkata. The micro-level field surveys, sampling design and data analysis of the study conducted is based upon the standard model approach to avoid spatial homogeneity.
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How to cite this article:
Dr. Sukanta Saha. Informal localization in recycling businesses: Reconciliation Hotelling Rule and Reilly’s law. International Journal of Multidisciplinary Research and Development, Volume 4, Issue 8, 2017, Pages 149-154
International Journal of Multidisciplinary Research and Development International Journal of Multidisciplinary Research and Development