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Empirical analysis of business location in Greater Vancouve Morris, John Edward 1974

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----- - EMPIRICAL ANALYSIS DR BUSINESS .,. LOCATION IN GREATER VANCOUVER """ by JOHN EDUARD MORRIS B.Sc. University of B r i t i s h Columbia, 1970 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION in the faculty of Commerce and Business-Administration Lie accept t h i s thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA July 1974 i i In p r e s e n t i n g t h i s t h e s i s in p a r t i a l f u l f i l m e n t o f the r equ i r emen ts f o r an advanced degree at the U n i v e r s i t y of B r i t i s h C o l u m b i a , I agree t h a t the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and s t u d y . I f u r t h e r agree t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y purposes may be g r a n t e d by the Head o f my Department: o r by h i s r e p r e s e n t a t i v e s . It i s u n d e r s t o o d that c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be a l l owed w i thout my w r i t t e n p e r m i s s i o n . Department o f Urban Land Economics , Faculty of Commerce and Business Administration The U n i v e r s i t y o f B r i t i s h Co lumbia Vancouver 8, Canada i i i ABSTRACT This thesis represents an empirical analysis of business location i n Greater Vancouver based upon the analysis of the returns to a location survey questionnaire. This questionnaire comprises a portion of the HPS project which i s a large-scale, s p e c i a l r e -search study of the Region. The study empirically determines which questionnaire variables (factors) influence the r e l a t i v e l ocation/ relocation of various firms located i n the G.V.R.D. S t a t i s t i c a l analysis and regression models provide an empirical data base for the land use group i n t h e i r development of models which allocate economic a c t i v i t i e s across the Region. The questionnaire returns possess l i m i t a t i o n s with respect to both scope of coverage and questionnaire format. Analysis i s accord-ingly limited; suggestions are made to obtain better quality empirical data i n future studies. The thesis derives some general interregional r e s u l t s although the data i s extensively u t i l i z e d i n a decidedly intrametropolitan context. The interregional r e s u l t s depict which variables are im-portant i n the location and relocation decisions for each subpopulation. In contrast, an empirical basis for intrametropolitan business l o c -ation policy i n the G.V.R.D. i s derived from the analysis herein. The intrametropolitan analysis i s j f e a s i b l e because size ( i . e . number of employees) and location are known for most respondents. An empir-i c a l synthesis v i a some common independent variables i s suggested i v to e x i s t , at least for the G.V.R.D., between in t e r r e g i o n a l and intrametropolitan l o c a t i o n . This u i l l a i d i n the construction of future questionnaire studies for each subpopulation at the i n t e r -regional or intrametropolitan l e v e l s i n the G.V.R.D. Eventually, location theories of substantial empirical u t i l i t y u i l l be derived for each subpopulation. Aside from the empirical value, t h i s thesis i s valuable i n terms of a n a l y t i c a l procedure. The regression transformation tech-nique i s applicable to other questionnaire studies where the type of response scale constructed i s i n question. The overview of location theory and Metropolitan Vancouver are furthermore thought ta provide an appropriate background to t h i s study as well as represent a substantial l i t e r a r y contribution. V TABLE OF CONTENTS Chapter Page I INTRODUCTION 1 J u s t i f i c a t i o n for the Study 1 Objectives and Limitations of the Study 2 General Approach of the Study 5 Overview of Interregional Location Theory 7 Subsequent Chapter Organization 12 References 1*+ II THE THEORETICAL BACKGROUND - A REVIEW OF THE LOCATION THEORY LITERATURE 15 Introduction 15 Economic Location Theory of Urban Land Use 16 Central Place Theory 20 Ecological Theories of Urban Land Use 30 Other Theories of Urban Land Use 33 Summary 35 References 36 III METROPOLITAN VANCOUVER - AIM HISTORICAL, ECONOMIC AND BUSINESS SECTOR SYNOPSIS 39 Introduction 39 Metropolitan Vancouver 40 i ) Overview of H i s t o r i c a l Development, Sp a t i a l Form and Site Qualities i i ) Outline of Land J u r i s d i c t i o n and Ownership 51 i i i ) Population and Economic Summary 51 Intrametropolitan Location of Business Sectors in the G.V.R.D. 69 i ) Offices 69 i i ) Primary Industries 70 i i i ) Manufacturing Sectors 74 iv ) R e t a i l Trade 82 v) Wholesale Trade and Storage 85 v i ) Infrastructure 88 v i i ) Financial and Administrative Services... 89 Summary 91 References 92 IV THE PRESENT QUESTIONNAIRE STUDY 97 Introduction 97 The Inter'Silnstitutional Policy Simulator (IPPS) Study 97 v i Chapter Page Questionnaire Technique 101 An Overview of the Location Survey Question-naire Factors 108 Summary 122 References 123 V ANALYSIS OF THE QUESTIONNAIRE DATA 126 Introduction 126 Significance Analysis of Questionnaire Variables 131 Intrametropolitan Location of Industry Subpopulations 133 Size-Location Analysis of Industry Sub-populations • 135 Regression Technique 141 Regression Results 144 Summary of Results Derived from the Data 157 References 159 VI SUMMARY AND RECOMMENDATIONS WITH SUGGESTIONS FOR FURTHER RESEARCH 160 Summary ISO Assessment of Project Worth and Recommendations. 162 Suggestions for Further Research.. 165 BIBLIOGRAPHY 167 APPENDIX I: Business Sectors i n the Vancouver Metro-politan Input-Output Study. 172 I I : Cost, Price and Building Size Data A n a l y t i c a l 184 I I I : Supplement to Questionnaire Data. 194 IV: Mathematical Appendix 217 V: FORTRAN Data Format 224 v i i LIST OF FIGURES Figure Page 1 "Weight-gaining" process S 2 "Weight-losing" process 8 3 S p a t i a l competition 12 4 Economic Rent and Relative Location of Competing A g r i c u l t u r a l Land Uses 17 5 Economic Rent and Relative Location of Competing Urban Land Uses 19 6 Consumer price/distance relationship 21 7 Consumer price/quantity relationship 22 8 The s p a t i a l demand cone 22 9 Aggregate supply and demand 23 10 Loach's three smallest market area sizes 24 11 The Loschian economic landscape 25 12 C h r i s t a l l e r hierarchy based on the marketing p r i n c i p l e 26 13 C h r i s t a l l e r hierarchy based on the transport p r i n c i p l e 27 14 C h r i s t a l l e r hierarchy based on the administrative p r i n c i p l e 27 15 Economic rent and a hierarchy of centres 28 16 Burgess 1 Concentric Ring Theory 31 17 Greater Vancouver Region, 1971 42 18 Greater Vancouver Regional D i s t r i c t : Harbour Administration 46 19 Greater Vancouver Regional D i s t r i c t : Ownership of Land Covered by Water 47 20 Greater Vancouver Regional D i s t r i c t : P r i n c i p l e 0 Office Building Locations, 1972 71 v i i ' M Figure Page 21 Greater Vancouver Regional D i s t r i c t : Actual A g r i c u l t u r a l Land Use, 1970 73 22 Greater Vancouver Regional D i s t r i c t : Zoned Industrial Areas, 1970 78 23 Greater Vancouver Regional D i s t r i c t : Actual Indu s t r i a l Land Use, 1970 79 24 Greater Vancouver Regional D i s t r i c t : I n d u s t r i a l Location Determinants, 1970 80 25 Greater Vancouver Regional D i s t r i c t : I n d u s t r i a l Areas of Potential Use, 1970 81 26 Greater Vancouver Regional D i s t r i c t : Actual Commercial Land Use, 1970 83 27 Vancouver: Existing Commercial Areas and Commercial Zoning with a C h r i s t a l l e r i a n Marketing Hierarchy of Central Places, 1972 84 28 Greater Vancouver Regional D i s t r i c t : Actual C i v i c and I n s t i t u t i o n a l Land Use, 1970 90 29 A Production Di s t r i b u t i o n System of the G.V.R.D... 99 30 Location Survey 102 31 Greater Vancouver Regional D i s t r i c t , 1968: Travel Time Zones 110 32 R a i l Transportation i n the G.V.R.D 11^ 33 Vancouver International Airport: Sea Island 116 34 The Location Code, V00S 130 i x LIST OF TABLES Table Page I Population of the G.V.R.D. Compared to B.C 52 II Population of Locations used in thi s Study. 53 III Summary S t a t i s t i c s for Vancouver Harbour, 1969 and 197D 54 IV Foreign Cargo by Commodity, in mil l i o n s of tons. 56 V Employment by Industry for Urban Areas CDDO's): Greater Vancouver 60 VI Average Weekly Earnings by Industry d ' s ) : Greater Vancouver 62 VII Business Structure Analysis of Greater Vancouver, November, 1972 64 VIII Selected Indicators of Economic A c t i v i t y , B r i t i s h Columbia, "1961-1971 67 IX Percentage Dis t r i b u t i o n of Employment i n the Lower Mainland by Industry Group, 1951^-1981 68 X Use of Ind u s t r i a l Land - Metro Vancouver 1966... 76 XI Acreage of Indus t r i a l Development - 1966 77 XII Average Density of Indus t r i a l Development and Average Site Size of Industrial Firms, 1966 82 XIII Subpopulation Analyzed 104 XIV Variables Considered i n the S t a t i s t i c a l Analysis 127 XV Counterpart Questionnaire Variables 132 XVI Mean BREAKDOWN of V004, number of employees, by V005, location 136 XVII Mean BREAKDOWN of V004, number of employees, by location group for each subpopulation 137 XVIII Crosstabulation analysis of sector, number of employees and location for a l l sectors 140 XIX Crosstabulation analysis of number of employees and location for each sector group 140 X ACKNOWLEDGEMENTS Many individuals have helped i n the preparation of t h i s thesis and i t mould be impossible to thank them a l l by name. Suffice i t tD say that without the co-operation of the businessmen actively engaged in the economic sectors of the Vancouver Metro-politan Input-Output Study i t could not have been completed. My thanks are also due to Dr. M. A. Goldberg f a r his valuable a s s i s t -ance throughout the course of the study. Others of note include Dr. G. K. White, Mr. P. 3. Rnyce, Mr. S. Kita , and Mrs. M. Brown. My greatest debt, as always, i s to my parents, Mr. H. E. Morris and Mrs. V. A. Morris. The f i n a l product of the research and p r a c t i c a l study as represented in th i s thesis i s e n t i r e l y my own, and I therefore remain sol e l y responsible for any errors or omissions. CHAPTER I INTRODUCTION A. J u s t i f i c a t i o n for the Study This thesis i s related to another thesis e n t i t l e d The Analysis  of Manufacturing Location i n Greater Vancouver by G. M. Richmond.^ Although the same location survey questionnaire i s used i n both studies, the present study d i f f e r s in two major respects: 1. This study considers the major industry subpopulations, i . e . r e t a i l , wholesale, f i n a n c i a l , etc., rather than just the manufacturing papulation. 2. This study u t i l i z e s the data i n a decidedly intrametropolitan context, given that some general interregional r e s u l t s are derived. The interregional r e s u l t s depict which variables are important in the location and relocation decisions for each subpopulation. The s i m i l a r i t y of response between these two decisions i s determined with Spearman rank c o r r e l a t i o n c o e f f i c i e n t s . The intrametropolitan approach, i n contrast to these r e s u l t s , i s recommended by Richmond: " . . . i t would be worthwhile to incorporate the s p a t i a l element into an expanded analysis of the location survey questionnaire returns. The...analysis of the i n t r a -metropolitan s p a t i a l pattern of response...(is motivated b y ) . . . s p a t i a l l y oriented studies of location within urban areas (Goldberg, 1969). Such studies suggest that i t would be worthwhile to analyze variation i n location factor preferences between central c i t y and suburban operations. The location requirements and policy implic-ations regarding the accommodation of ...(subpopulations) . . . i n these two areas of the city...(may) possess 2 d i s t i n c t differences...Knowledge of the patterns... i n t h i s regard would be of relevance to the formu-l a t i o n of...zoning schemes to accommodate various types and sizes o f . . . ( b u s i n e s s ) . . . a c t i v i t i e s within the metropolitan area."2 Consideration of location factors provides a l o g i c a l basis for, and avoids a maldistribution of, the location of subpopulations. Although i t i s beyond the scope of t h i s thesis to develop intertemporal questionnaire data, analysis of such data i s recommended to approp-r i a t e l y study l o c a t i o n a l dynamics. Proper location further avoids losses which would otherwise accrue to entrepreneurs and the c i t y as a whole under a system of lo c a t i o n a l i n e f f i c i e n c y . Therefore, an empirical basis for intrametropolitan location policy i n the G.V.R.D. i s derived from the analysis herein. Aside from the empirical value, t h i s thesis i s also of value in terms of methodological and a n a l y t i c a l procedure. Modifications of the location survey procedure and format suggested i n the text are applicable to business location surveys in general. The regression transformation technique i s applicable to other questionnaire studies where the type of response scale constructed i s i n question. Furthermore, the overview of location theory and Metropolitan Vancouver are thought to provide an appropriate background to t h i s study as well as represent-a substantial l i t e r a r y contribution. B. Objectives and Limitations of the Study This study empirically determines which questionnaire v a r i -ables (factors) influence the r e l a t i v e location/relocation of various firms located i n the G.V.R.D. The location survey questionnaire comprises a portion of the HPS project which i s a large-scale, speci a l research study of the G.V.R.D. The location survey question-3 naire was to be used i n conjunction with the Input-Output question-naire. The location survey questionnaire measures the l e v e l of importance of nineteen factors i n a firm's actual decision to locate in the G.V.R.D., as well as a firm's hypothetical decision to relocate outside the G.V.R.D. The Input-Output questionnaire re-quests precise revenue/sales and expenditure by s p a t i a l sector i n order to construct an input-output matrix. The SIC number, sector, number of employees, and street address are known for both question-naires. Thus, wide scape for s t a t i s t i c a l analysis i i passible with both questionnaires. Meagre response was unfortunately received for the Input-Output questionnaire. Presumably, firms were reluctant to divulge extremely co n f i d e n t i a l information for the public good. Thus, the location survey questionnaire i s presently of limite d u t i l i t y to the economics group. The land use group, however, w i l l f i n d the location survey questionnaire r e s u l t s u s e f u l . This group i s developing models to allocate economic and r e s i d e n t i a l a c t i v i t i e s across the Region. Emphasis i s upon the development of rigorous housing models to assess the impact of a l l levels of government p o l i c i e s on the supply and demand for regional housing. However, the s t a t i s t i c a l analysis and regression models of the present location survey questionnaire study, provide an empirical data base for the land use group i n th e i r develop-ment of models which allocate economic a c t i v i t i e s across the Region. The empirical data base for t h i s thesis consists of 300 usable returns of the location survey questionnaire received by February 1972. Approximately 20 responses were unusable due to i n s u f f i c i e n t inform-ation with respect to answering the questionnaire, sector number or I* l o c a t i o n . This represents a t o t a l usable response rate of 7.9% which i s quite poor. Consequently, inferences about the lo c a t i o n / relocation of some subpopulations are constrained by the limited number of cases for these subpopulations. The usable response rate i s further constrained by missing values. Although a feu respondents did not reveal the number of employees or attribute importance to a pa r t i c u l a r factor, several f a i l e d to answer either questions 1 or 2 of the location survey questionnaire. 15 f a i l e d to answer question 1; 83 f a i l e d to answer question 2. Thus complete responses, i . e . answers to both questions 1 and 2, were only received from 202 firms or 67.3 per cent of the t o t a l number of firms included i n t h i s survey. Given the simil a r format on both sides of the questionnaire i n Figure 4.II and the larger number of n u l l responses to question 2, i t appears that several respondents did not r e a l i z e that there i s a question 2. A major disadvantage of questionnaires i n general i s that there i s always some (uncertainty as to whether scores are true or merely represent some degree of perceptional bias. There are some l i m i t a t i o n s to the present questionnaire which could be r e c t i f i e d to obtain better data. 1. This study i s severely limited because i t i s unknown when the decision was made by firms to locate i n the G.V.R.D. 2. It i s unknown whether respondents actually intend to move. 3. Although i t i s possible to i n d i r e c t l y perform intrametro-politan location analysis, the importance of the location factors at the regional and intrametropolitan levels could be f u l l y established and compared i f a supplement to question 1 states, "For each of the following factors would you please indicate the l e v e l of importance 5 i n your decision to locate your business i n the p a r t i c u l a r munici-p a l i t y i n the Vancouver Region." 4. More precise d e f i n i t i o n of the factors i s required i n future studies. For example, i s the factor "Truck transportation" used i n the context of a v a i l a b i l i t y of, cost of, Dr both? Is the " A v a i l a b i l i t y of large tracts of land" required for a large plant, onsite expansion, or both? From the above, i t becomes apparent that the quality, r e l i -a b i l i t y and completeness of the location questionnaire survey i s quite limi t e d for an intrametropolitan location study of the G.V.R.D. Only through the continual "de-bugging" of t h i s and subsequent question-naire studies can the questionnaire's u t i l i t y as an empirical data base be improved. C. General Approach of the Study As suggested above, i t i s only possible to i n d i r e c t l y perform intrametropolitan location analysis. Intrametropolitan location i s concerned with choosing a location within an urban area; interregional location i s concerned with choosing a location from among s p a t i a l l y separate and heterogeneous regions considered to be points i n space. The independent variables of interregional location theory are con-sidered i n the l i t e r a t u r e to be inapplicable to intrametropolitan location theory because these variables display l i t t l e v a r i a t i o n over 3 the r e l a t i v e l y homogeneous urban environment. This thesis determines which factors influence d i f f e r e n t industry subpopulations to choose Metropolitan Vancouver as a regional l o c a t i o n . Since the i n t r a -metropolitan firm size ( i . e . number of employees) and location are known for most respondents, t h i s thesis attempts a limited i n t r a -6 metropolitan analysis. Thus, only one of the following two hypothesis i s operative: 1. Interregional factors influence a firm's choice of Metro-politan Vancouver as a regional l o c a t i o n . These factors are from a mutually exclusive set d i s j o i n t from a set of intrametropolitan factors which influence a firm's l o c a t i o n a l choice within Metro-politan Vancouver. 2. Interregional factors influence a firm's choice of Metro-politan Vancouver as a regional l o c a t i o n . Some of these factors can also influence a firm's l o c a t i o n a l choice within Metropolitan Van-couver. I f hypothesis 1 i s true, then none of the interregional factors would vary s i g n i f i c a n t l y with intrametropolitan l o c a t i o n . Hypothesis 1 i s f a l s e because some interregional factors vary with size which i n turn varies with intrametropolitan l o c a t i o n . Therefore, some i n t e r -regional factors can also influence a firm's l o c a t i o n a l choice within Metropolitan Vancouver. More of the questionnaire variables ( i . e . interregional factors) t y p i c a l l y influence the inte r r e g i o n a l rather than intrametropolitan location/relocation decisions due to the greater variation of these factors at the interregional l e v e l . An empirical synthesis via some common independent variables i s suggested to exi s t , at least for the G.V.R.D., between i n t e r -regional and intrametropolitan l o c a t i o n . This w i l l aid i n the con-struction of future questionnaire studies for each subpopulation at the interregional or intrametropolitan levels in the G.V.R.D. Further questionnaire studies are however required to establish a stronger comparison between the same set of variables at both location l e v e l s . D. Overview of Interregional Location Theory 7 a) Least-cost location theory n The o r i g i n of location theory i s attributable to von Thunen. His theory i s applied to the intrametropolitan context i n Chapter II n but i t i s also relevant to the interregional l e v e l , von Thunen's approach i s : given the location, determine which product i s to be produced at that l o c a t i o n . Approximately 75 years l a t e r , the Weberian least cost location theory took an opposite viewpoint: given the product, determine an interregional location for that product. Greenhut further notes that, it "von Thunen assumes a homogeneous land surface and one consuming centre; Weber assumes uneven deposits of f u e l and raw material and several consuming centres, though his geometrical representations and general discussions are framed in terms of a given buying p o i n t . " 5 Weber's theory i s based upon a firm's cost minimization of three basic location factors: transportation cost, labour cost, and agglomerating forces. Fuel and raw material costs are included i n transportation costs to simplify the analysis. When transfer costs are the only s i g n i f i c a n t location factor, the least cost transportation s i t e depends upon the product c h a r a c t e r i s t i c s . Figure 1.1 shows that a "weight gaining" product such as soft drinks locate near the market to min-imize transport costs. 8 Figure 1.1. "Weight-gaining" process Transportation cost per unit Transportation cost of inputs Total transportation costs •Transportation cost of outputs Locate here Rat-material Market Source: Smith, W.F., "Principles of Urban Development," (Unpublished manuscript, 1972), p. 51a. Alt e r n a t i v e l y , a product such as iron locates at the source of rat-material, as shown in Figure l . I I , due to the "weight-losing" process. Figure l . I I . "Weight-losing" process Transportation . j cost per unit | ---- i^ Transportation cost of inputs Total transportation costs Transportation cost of outputs Raw material Market Source: Smith, W.F., "Principles of Urban Development," (Unpublished Manuscript, 1972), p. 51a. Unlike von Thunen i Weber acknowledges the regional variation of labour costs which can o f f s e t transfer costs i n the location decision of a labour intensive firm. Agglomerating or deglomerating farces respectively i n t e n s i f y or counteract the rel a t i o n s h i p between trans-portation and labour costs. Agglomeration t y p i c a l l y exists when labour constitutes a s i g n i f i c a n t portion of value added i n the pro-duction process because such firms can reduce costs by agglomerating. In general, agglomerating advantages, i . e . proximity to a u x i l i a r y industries, better marketing outlets, or economics of s i z e , influence the location decision whenever transportation and labour d i f f e r e n t i a l s are s l i g h t at alternative s i t e s . ^ Weber excludes . i n s t i t u t i o n a l and demand factors, i . e . interest insurance, taxes, climate and management, and only accepts forces which are independent of s p e c i f i c economic systems. Items such as gas 7 water mains and streets are included as lo c a t i o n a l f a c t o r s . Substitution between transport and non-transport cost factors i s possible. Weber's isodapane concept i s used to determine the optimum plant location when there exist s p a t i a l l y d i s t i n c t transport and labour cost optima. It i s evident that multiple inputs or markets can accordingly influence the location of firms at the least Q cost point somewhere i n the Weberian polygon. Hoover, also a least-cost t h e o r i s t , d i f f e r s from Weber i n approach rather than theory. Location cost factors are functionally separated as either transportation or production factors; demand de-g terminants are mentioned. Transportation costs include the costs of procuring raw mat-e r i a l s and d i s t r i b u t i n g finished products, as well as the costs assoc-iated with holding large inventories and customer d i s s a t i s f a c t i o n due to distance and slow service. The ch a r a c t e r i s t i c s of freig h t costs are of greater concern to Hoover than Weber. Transfer costs do not increase proportionately with distance due to the recognition of fixed terminal costs which vary by transport mode. Therefore, the higher terminal cost, the greater i s the economy i n a long distance shipment. Hoover further provides a more comprehensive analysis of the agglomerating and deglomerating forces as well as i n s t i t u t i o n a l cost factors; a l l of which comprise p a r t i a l determinants of production costs. Better transfer services, a broader more f l e x i b l e labour market, more advanced banking f a c i l i t i e s , better public services, and lower insurance and u t i l i t y rates constitute agglomeration. Inclusion of i n s t i t u t i o n a l factors gives Hoover's analysis a c a p i t a l i s t i c context. Hoover's analysis considers a l l possible locating factors rather than only general factors applicable to a l l plant l o c a t i o n s . 1 1 Therefore, 12 Hoover adopts Weber's theory to be applied to existing s i t u a t i o n s . The greatest weakness of Hoover's work i s the exclusion of l o c a t i o n a l interdependence (demand) to j u s t i f y a location. Rather, the location i s assumed; market and supply areas are accordingly derived. 1"^ b) Market area analysis Unlike the least-cost theorists who assume location under per-fect competition, market area analysis assumes location with scattered buyers whose s e l l e r s function under some form of imperfect competition. Consequently, s e l l e r s locate to control d i f f e r e n t groups of buyers whose demand curve i s not horizontal at each l o c a t i o n . The size and 14 shape of a firm's market area i s accordingly derived. Goldberg mentions two basic assumptions which underlie market area analysis: "1. Prices are f.o.b. m i l l prices ( i . e . quoted at the factory door. 2. Transportation costs are assumed proportional to distance (there are no quantity discounts on tonnage or distance, and there are no discon-t i n u i t i e s such as occur at transfer points)."15 From the above, i t i s evident that the market area analysts neglect costs while least cost theorists neglect demand i n th e i r theories. Attempts to synthesize these two theories are made by II Hoover, a least cost theorist, and Loach, a market area analyst. Hoover emphasizes costs and only considers demand with respect to n market area s i z e , shape and number of producers. Losch does not emphasize costs but expands the market area theory with the d e f i n i t i o n of the firm's minimum size market area and the overview of i n d u s t r i a l 16 " agglomeration. Losch's theory i s interregional yet i t i s further outlined i n Chapter II to provide a basis for central place theory which i s applicable to the intrametropolitan context. Isard, who i s primarily concerned with international trade, does however provide a 17 synthesis of the UJeberian and market area analysis, c) Locational interdependence In contrast to the market area approach which assumes fixed locations and e s s e n t i a l l y analyzes short-run phenomenon, the l o c a t i o n a l interdependence theorists hypothesize either movable locations (without cost) or planned future locations i n order to f i n d reasons for a p a r t i c u l a r l o c a t i o n . Locational interdependence considers long-run 18 equilibrium analysis i n the market area context. The following example i l l u s t r a t e s t h i s theory. A l i n e a r market i s assumed for s i m p l i c i t y i n Figure l . I I I ; s i z e , shape and market area are e s s e n t i a l l y ignored. 12 Figure l . I I I . S p a t i a l competition i A -BB' " ^ ' An i n f i n i t e l y i n e l a s t i c demand for the product causes two competing firms to concentrate at the mid-point BB' of the entire market area rather than to disperse to A,A 1. I n f i n i t e l y i n e l a s t i c demand pre-cludes a lessening of sales due to increased transportation costs at BB'. Therefore, l o c a t i o n a l interdependence explains concentrations of sim i l a r firms at a few production centres. Conversely, market area analysis inadequately explains the case where (1) market demand i s concentrated at a point or (2) the market areas of firms are 19 i d e n t i c a l . Goldberg further notes reformulations of c l a s s i c a l location theory by Alonso and C h u r c h i l l . Alonso, for example, introduces economies of scale and factor s u b s t i t u t i o n . Variable factor prices cause variable factor proportions over space whence transport cost 20 minimization does not necessarily coincide with p r o f i t maximization. E. Subsequent Chapter Organization The remainder of t h i s thesis consists of f i v e chapters. Chapter II b r i e f l y reviews some of the rather extensive, major theories which underlie the intrametropolitan location theory of certain firms. The t h i r d chapter presents an h i s t o r i c a l , economic and business sector, synopsis of Metropolitan Vancouver. This synopsis outlines some topics which are relevant to the present location/relocation, question-aire study of firms located i n the G.V.R.D.: 13 - h i s t o r i c a l development, s p a t i a l form and s i t e q u a l i t i e s ; - land j u r i s d i c t i o n and ownership; and - population and economic development. Very b r i e f consideration i s given to the intrametropolitan location theory of each subpopulation. Chapter IU considers the location survey questionnaire i n the context of the HPS project. Discussion of the questionnaire technique and the s p e c i f i c variables used in the present study are a prelude to the s t a t i s t i c a l analysis of the questionnaire data i n Chapter V. The f i f t h chapter explains the gen-e r a l method and summarizes the s i g n i f i c a n t a n a l y t i c a l r e s u l t s of the location survey questionnaire. Chapter UI provides a summary of con-clusions and recommendations with suggestions for further research. Five appendices are further presented. Appendix I outlines the business sectors i n the Vancouver Metropolitan Input-Output Study. Location, size and economic data appear in Appendix I I . A b r i e f mathematical Appendix IV i s included for the reader's convenience; Appendix III contains data which i s pertinent to Chapter V. Appendix V discusses the coding of the data. F. References Richmond, G. M., The Analysis of Manufacturing Location i n  Greater V/ancouver (unpublished M.A. Thesis, U.B.C: 1973). 2 I b i d . , p. 54. ^Goldberg, M. A., Intrametropolitan Industrial Location: Plant Size and the Theory of Production, (University of C a l i f o r n i a , Berkeley, 1969), p. 4. ^Greenhut, M. L., Plant Location: In Theory and In Practice, (University of North Carolina Press, 1956), pp. 8-9. 5 Loc. c i t . 6 I b i d . , pp. 9-11. 7 I b i d . , pp. 11, 12. 8Goldberg, M.A., Op. c i t . , pp. 30-32. 9 Greenhut, M. L., Op. c i t . , p. 17. 1 D I b i d . , pp. 17, 18. 1 1 I b i d . 1 p. 19. 12 Goldberg, M.A., Op. c i t . , p. 33. 1 3Greenhut, M. L., Op. c i t . , p. 21. l f*Ibid., p. 23. 15 Goldberg, M.A., Op. c i t . , p. 41. 1 6Greenhut, M.L., Op. c i t . , pp. 34-37. 1 7 Goldberg, M.A., Op.cit., pp. 33-34. IS Greenhut, M.L., Op. c i t . , p. 25. 1 9 I b i d . , pp. 39, 40. pn Goldberg, M.A., Op. c i t . , pp. 35-37. 15 CHAPTER II THE THEORETICAL BACKGROUND - A REVIEW OF THE LOCATION THEORY LITERATURE A. Introduction It i s d i f f i c u l t to apply a general intrametropolitan location theory to Canadian c i t i e s due to the diverse types of firms located therein. Friedmann and Alonso suggest that the d i s t r i b u t i o n of human a c t i v i t i e s : "....result...from the interdependencies that give form to economic space. S p a t i a l patterns u i l l change with s h i f t s i n the structure of demand and of pro-duction, i n the l e v e l of technology, and i n the s o c i a l and p o l i t i c a l organization of the nation.""• Since people tend to make d i f f e r e n t location decisions over time or in other regions, i t i s d i f f i c u l t to develop a general theory which anticipates or even explains t h e i r behaviour. Nevertheless, there are several broad theories which underlie the intrametropolitan location theory of certain firms. This chapter i s merely a b r i e f review of some of the rather extensive, major theories which underlie the intrametropolitan location theory of certain firms. Economic location, central place, ecological and other theories of urban land use are b r i e f l y summarized. The interested reader w i l l kindly refer to the footnotes for greater el u c i d a t i o n . 16 B. Economic Location Theory of Urban Land Use The foundations of an urban economic location theory are II 2 attributable to the a g r i c u l t u r a l location theory of von Thunen. U t i l i z i n g the basic concept of a g r i c u l t u r a l location, land rent, a theory of urban economic location i s derived. The p r i n c i p l e feature of t h i s theory, as Nourse^ suggests, i s that the c r i t e r i a for the r a t i o n a l choice of a location for a firm or residence are given. Residential or business location respectively r e s u l t s from u t i l i t y or p r o f i t maximization. Ricardo f i r s t mentioned the concept of a g r i c u l t u r a l land rent which i s defined as the excess that an i n d i v i d u a l located at the margin would be w i l l i n g to pay a person located at the centre for his better land, von Thunen*' f u l l y developed the rent concept to suggest that, ceteris) paribus, intensity of a g r i c u l t u r a l land use decreases as distance from the central market increases due to the increase of transportation costs. This statement i s based upon the following assumptions: "1. A uniform physical environment; 2. A completely commercial economy in which the farmer was both desirous and capable of maximizing his p r o f i t ; 3. Only one means of land transportation and that with costs d i r e c t l y proportional to distance; and 4. An area i n which both market and hinterland were sole l y dependent on each other for t h e i r existence (the 'isolated state', as Thunen expressed i t ) . " 6 Upon examining the choice of alternative uses to which they may put t h e i r land, landowners a l t e r t h e i r p a r t i c u l a r combination of the factors of production accordingly. The slope of each economic rent function varies 7 with the land in question. Therefore, Figure 2.1 shows the 17 location of d i f f e r e n t a g r i c u l t u r a l land uses which might arise under von Thflnen's assumptions. Figure 2.1 Economic Rent and Relative Location of Competing A g r i c u l t u r a l Land Uses. Economic Rent $'s Distance Potatoes Peas It i s possible to transform von Thflnen's a g r i c u l t u r a l location theory into an urban economic model. Isard suggests that, i n the urban context, bid rent i s determined by the following f a c t o r s : 1. E f f e c t i v e distance from the core. 2. A c c e s s i b i l i t y of the s i t e to potential customers. 3. Number, nature and locations of competitors. k. Proximity to land of complementary use or uses which both a t t r a c t customers and minimize costs.8 This l i s t i s by no means exhaustive; the questionnaire variables, for example, are further factors which determine bid rent. It i s however, beyond the scope of t h i s study to precisely determine the bid rent for d i f f e r e n t categories of firms. Nevertheless, the location and re-location decisions i n the urban economic model are wrought by the following chain of events: factors »» bid rent «- r e l a t i v e location The scope of t h i s study i s to empirically determine which questionnaire variables (factors) influence the r e l a t i v e location/relocation of various firms located i n the G.V.R.D. From Isard's factors above, i t seems i n t u i t i v e that d i f f e r e n t 18 types of firms are influenced by d i f f e r e n t factors whence r e l a t i v e l o c a t i o n . Commercial and service firms, for example, tend to maximize th e i r revenue i n a C.B.D. loca t i o n . The further they locate from the C.B.O., revenue decreases and costs such as advertising increase to offs e t decreased a c c e s s i b i l i t y . Consequently, the bid rent function of these firms i s influenced by the a c c e s s i b i l i t y factor in th e i r location decision. The bid rent function i i further influenced by rent per acre which decreases faster with distance from the market centre. The slope of the bid rent function i s very steep because advertising costs increase faster than rent per acre decreases with respect to distance. Since net costs increase with distance, greater revenue per square foot of f l o o r space i s required. This required revenue be-comes increasingly d i f f i c u l t to obtain as land i s substituted for non-land inputs. After a certain distance, t h i s breakeven revenue i s un-obtainable. A d i f f e r e n t bid rent function arises for manufacturing firms. Here, t o t a l revenues are r e l a t i v e l y unchanged but t o t a l costs vary s p a t i a l l y for each type of manufacturer. Goldberg demonstrates the tradeoffs which d i f f e r e n t types of manufacturers make, "between external economies at central locations and i n t e r n a l economies at more distant g ones." Since certain manufacturers take advantage of in t e r n a l economies of scale at peripheral s i t e s , the bid rent function of manufacturing firms i s r e l a t i v e l y f l a t t e r than commercial and service firms. It i s noted that i n a mathematical approach towards an urban economic model, Alonso only considers one of Isard's factors as a rent determinant. This i s e f f e c t i v e distance from the core. Alonso assumes, "a completely centralized city....Other factors, which relate to the interdependence of business locations, are too complex for analysis here." The concept of a bid price curve, which, " . . . . i s a set of combinations of land prices and distances among which the i n d i v i d u a l i s indifferent," 1*'' condenses the notions of u t i l i t y , land, distance, composite goods and money into land cost and money. Consequently, the ind i v i d u a l chaoses the location, "at which the pries structure touches 12 the lowest of the bid price curves with which i t comes i n contact." Figure 2.II demonstrates the competitive equilibrium obtained from the bid rent curves determined by various factors associated with the d i f f e r e n t urban land uses. Figure 2.II Economic Rent and Relative Location of Competing Urban Land Uses. Economic Distance from market centre 1 Manufacturing (Peripheral) ' Residential Manufacturing (Central) Commercial and service firms Source: Nourse, H.O., Regional Economics, (New York: McGraw-Hill Book Company, 1968) p. 115. 20 Therefore, the urban economic model demonstrates the r e l a t i v e location of d i f f e r e n t urban land uses i n aggregate; not at the l o c a l l e v e l . C. Central Place Theory Implicit i n the urban economic model i s the theory of central place. Berry states that t h i s i s the theory of "....the location, s i z e , nature and spacing of..... clusters of (economic) a c t i v i t y , and i s the t h e o r e t i c a l base of much....M"-3 urban ana l y s i s . This theory p a r t i c u l a r l y applies to r e t a i l and service businesses. It assumes that i d e n t i c a l , cost minimizing, uniformly dist r i b u t e d customers can move i n any di r e c t i o n over an unbounded p l a i n . In essence, the theory suggests that consumers are b a s i c a l l y lazy. For items required most frequently, they t r a v e l to the location which r e -quires the least e f f o r t to v i s i t . Moreover, consumers postpone less frequent purchases so that only a single t r i p i s required. Berry further states "For d i f f e r i n g a c t i v i t i e s c e n t r a l i t y therefore has meaning at dif f e r e n t scales; i n any area a variety of central places w i l l thus e x i s t . Businessmen located i n some u i l l a t tract consumers on a frequent basis, but only over short distances. Other places u i l l be able to provide a greater variety of goods to much uider areas. The clusters of a c t i v i t y i n these places vary, along u i t h the sizes of the urban places i n which the markets locate."15 The bases of central place theory are attributable to Losch 17 and C h r i s t a l l e r . Berry suggests that "In C h r i s t a l l e r much of the underlying theory i s i m p l i c i t , and i t uas Losch uho, i n an independent derivation, made i t e x p l i c i t . In each case, the theory i s developed e s s e n t i a l l y detached from considerations of the behavior of r e t a i l e r s and consumers over time and i n space. Both theorists agree on the s p a t i a l arrangement of stores required for optimal d i s t r i b u t i o n of a single good to a dispersed population. However, t h e i r arguments diverge s i g n i f i c a n t l y when they seek to obtain locations for many kinds of goods considered simultaneously, with r e s u l t s that make Lflsch's "economic landscapes" more relevant to secondary production at i t s l a t e r market-oriented stages, and C h r i s t a l l e r * s hierarchies most appropriate i n analysis of r e t a i l and service business i n the t e r t i a r y sector.""-"* L o s c h ' s ^ analytic approach, based on Chamberlin's economic theory, assumes a triangular d i s t r i b u t i o n of nucleated a g r i c u l t u r a l v i l l a g e s . Producer's location i s conceived as one type of product d i f f e r e n t i a t i o n . Figure 2 . I l l demonstrates that the consumer price for good x increases l i n e a r l y with respect to distance when transport costs, mt, are l i n e a r . Figure 2 . I l l Consumer price/distance relationship Cost p + r t p + mt P Distance m Source: Berry, B.J.L., Geography of Market Centers and R e t a i l  D i s t r i b u t i o n , (Prentice-Hall, Inc., Englewood C l i f f s , M.J., 1967) p. 60. The price that a consumer pays for good x i f he i s located at m i s p + mt where m i s the number of miles and t i s the transport cost per mile. Since a l l consumers are assumed to have equal demand for good x Figure 2.IV shows that the quantity, q l , consumed depends on the con-sumers 's price at his p a r t i c u l a r residence. 22 Figure 2.IV. Consumer price/quantity relationship price p + r t p + mt quantity Source: Berry, B.J.L., Geography of Market Centers and R e t a i l  D i s t r i b u t i o n , (Prentice-Hall, Inc., Engleuood C l i f f s , N.J., 1967) p. 60. The demand cone in Figure 2.V i s derivable from Figures 2.III-IV, Figure 2.V. The s p a t i a l demand cone quantity Source: Berry, B.3.L., Geography of Market Centers and R e t a i l  D i s t r i b u t i o n , (Prentice-Hall, Inc., Engleuood C l i f f s , N.J., 1967) p. 61. Quantity consumed decreases u i t h distance due to higher transport costs. The area D beneath the demand cone represents the t o t a l quantity of good x consumed by customers uhich l i v e no further than r miles from 20 the store. Berry states that: "Since quantity demanded, q, varies i n response to l e v e l of r e t a i l price plus transport cost, p + mt, D i s found 23 by integrating the function q = f(p + mt) out to the maximum radius r , and multiplying by population density S. Di ( = S J h f ( p ^ + mt)mdm dB (Eq.2.1) If t h i s c a l c u l a t i o n i s repeated for a variety of dif f e r e n t store s e l l i n g prices, p., cones of varying heights and maximum r a d i i m i l l r e s u l t , and di f f e r e n t levels of t o t a l demand D. may be calculated. If these values of p. and D. are plotted i n a graph and a l i n e i s f i t t e d to the r e s u l t s , an aggregate-^ demand curve D for the market area can be drawn." Figure 2.1/1 shows that a firm can s t i l l remain viable with i t s size reduced from XY to X ^ 1 . Figure 2.VI. Aggregate supply and demand Store price or production cost Quantity demanded or produced Source: Lflsch, A., The Economics of Location (New Haven: Yale University Press, 1954) p. 106. As firms enter the industry which i s assumed to be monopolistically competitive, p r o f i t s are competed away to zero. This s h i f t s the demand curve 0 to D 1 since an hexagonal market area i s smaller than the c i r c u l a r market area which circumscribes i t . The hexagon shrinks u n t i l Dl i s tangent to the long-run average cost, LAC, curve at Y 1. Thus, XY and X^Y1 respectively determine the maximum and minimum shipping 22 radius. Having started above with the lowest order good, Losch develops trading areas which look l i k e various sized hexagonal nets, depending on the product* Figure 2.VII shows the resultant hexagonal trading areas each of which contains 18 outlying v i l l a g e s and one central v i l l a g e (black dots represent a v i l l a g e ) . Figure 2.VII. Lflsch's three smallest market area s i z e s . Source: Berry, B.3.L., Geography of Market Centers and R e t a i l D i s t r i b u t i o n , (Prentice-Hall, Inc., Englewood C l i f f s , N.J., 1967) p. 71. The economic landscape, shown i n Figure 2.VIII, i s comprised of s i x sectors where centres of production are scarce and s i x sectors where 23 they are frequent. This landscape, predicated upon e f f i c i e n t transportation linkages, provides a n a l y t i c a l corroboration of Hoyt's sector theory. 25 Figure 2.VIII. The Laschian economic landscape. Source: Berry, B.J.L., Geography of Market Centers and R e t a i l D i s t r i b u t i o n , (Prentice-Mall, Inc., Englewood C l i f f s , N.J., 1967) p. 73. it C h r i s t a l l e r takes a more inductive approach than Losch and begins with the most national commodity. I t i s assumed that consumers, l i v i n g 2k on a uniform p l a i n , require several goods and services. In t h i s regard, Berry relates that "each highest-order store location defines a central place from which a l l other goods and services w i l l be provided. But the minimum size of market area required for support of successively lower-order goods w i l l be progressively less than the hexagons for the highest-order good. Given that e x i s t i n g centers already provide a l l goods,...(an enterprising businessman succeeds at a new)...location exactly at the midpoint between three of the o r i g i n a l places. The good w i l l be one whose threshold market area around the neu location i s a hexagon exactly equal to the hexagonal market area for the same good as provided by each of the three e x i s t i n g centers. New centers providing the good may be located at the midpoint of every tr i a n g l e of three metropolitan centers, and a second network of hexagons can be drawn completely covering the p l a i n . A l l goods with threshold require-ments greater than hexagons of the smaller set and less than or equal to the larger are provided exclusively by the larger centers. A l l other goods may be provided by both l e v e l s of c e n t e r s . 0 2 5 Figure 2.IX shows the resultant hierarchy of market areas and centers such that goods are grouped into orders dependent on market area s i z e s . 26 Figure 2.IX. C h r i s t a l l e r hierarchy based on the marketing p r i n c i p l e . Source: Berry, B.J.L., Geography of Market Centers and R e t a i l D i s t r i b u t i o n , (Prentice-Hall, Inc., Engleuood C l i f f s , N.J., 1967) p. 65. Figure 2.IX i s based on the marketing p r i n c i p l e because competing firms agglomerate on the assumption that the largest market centres provide a f u l l range of d i f f e r e n t goods and services. C h r i s t a l l e r further developed two alternative hierarchies based upon the transport p r i n c i p l e and administrative p r i n c i p l e . The transport p r i n c i p l e suggests that after the hexagonal d i s t r i b u t i o n of metropolitan centres with corresponding market areas i s derived, the next lowest centres locate at the midpoints of the transportation routes which bisect these metropolitan centres. Figure 2.X shows market areas, centre locations and transport routes i n a hierarchy based on the transportation p r i n c i p l e . Therefore, new centres locate between each pair of metropolises rather than l i e midway among three metro-politan centres. This hierarchy maximizes the number of centres which locate on main transportation linkages. To enable areal delegation of power, the administrative p r i n c i p l e requires that each higher-order centre completely control an 27 Figure 2.X. C h r i s t a l l e r hierarchy based on the transport p r i n c i p l e . Source: Berry, B.J.L., Geography of Market Centers and R e t a i l d i s t r i b u t i o n , (Prentice-Hall, Inc., Engleuood C l i f f s , N.J., 1967) p. 66. adjacent array of s i x louer-order centres. Figure 2.XI demonstrates the arrangement, nesting, and transport routes of a hierarchy based on 26 the administrative p r i n c i p l e . Figure 2.XI. C h r i s t a l l e r hierarchy based on the administrative Source: Berry, B.J.L., Geography of Market Centers and R e t a i l D i s t r i b u t i o n , (Prentice-Hall, Inc., Engleuood C l i f f s , N.J., 1967) p. 66. Given the above overview of central place theory, i t i s possible to extend the urban economic model so that the bid rent functions exist u i t h i n a s p a t i a l hierarchy of centres. Figure 2.XII demonstrates p r i n c i p l e . 28 t h i s extension where simplifying assumptions such as uniform transport costs are inoperative. Figure 2.XII. Economic rent and a hierarchy of centres. Economic Rent S's Metropolitan/ \ Regional Centre |W Neighborhood i Centre Reg.Shopping Centre 1 1 1 i ^ T 8 5 I 1 i ! ! « i ! i i i i i . i i I I I ! • V ! ! i —i i i S a t e l i t e v. C i t y * r i ! FY-Source: Nourse, H.O., Regional Economics, (New York: McGraw-Hill Book Company, 1968) p. 120. Central place theory and i t s extensions further enable e f f i c i e n t location decisions of Bervice and r e t a i l functions, as well as an understanding of urban s p a t i a l r e l a t i o n s h i p s . R e i l l y , for example developed laws of r e t a i l gravitation which suggest that the trade area boundary between two towns X and Y, i s , i n kilometres from Y, equal to: kilometres between X and Y 1 + aize o f " x (Eq.2.2) V size of Y Good surrogates for size are population or number of central functions. Eq. 2.2 applies only to c i t i e s , larger regional centres, and r u r a l areas. Eq. 2.3, an alternative equation to Eq. 2.2, i s required for metropolitan regions because an absolute breaking point does not e x i s t . where: P.,:s probab i l i t y that a consumer located at A w i l l v i s i t centre 1. r: the number of d i f f e r e n t shopping opportunities 5.: the size of a par t i c u l a r shopping opportunity T ^ : t r a v e l time from A to a shopping opportunity of size S ^ c PAi= i - 0 oc: a parameter which varies for di f f e r e n t levels of the hierarchy. Thus, Eq. 2.3 enables the computation of s p a t i a l probability curves for 27 v i s i t i n g a given metropolitan centre. Although central place theory provides some th e o r e t i c a l basis for intrametropolitan location theory, i n pa r t i c u l a r service and r e t a i l firms, some c r i t i c i s m i s i n order. E s s e n t i a l l y , much of the c r i t i c i s m of central place and other theories i n t h i s chapter, stems from t h e i r a p r i o r i reasoning. Conclusions are v a l i d to the extent that the assumptions are correct; many of the assumptions, which seem i n t u i t i v e l y appealing, are oversimplified. Isard suggests Losch only considers production s i t e s which do not require raw materials, i . e . service firms, or e x i s t i n an environ-ment where raw materials are rea d i l y available at equal costs. The 28 r e a l i s t i c a f f e c t of s p a t i a l variations i n input costs i s ignored. Vance further notes several c r i t i c i s m s , some of which are reproduced here: "1. I ts existence i s an outgrowth of an ar e a l l y based support within which r e l a t i v e l y consistent s p a t i a l economies must be assumed. 2. "Re t a i l g r a v i t a t i o n " i s the main force shaping s e t t l e -3D ment patterns. 3. This gravitation i s shaped by customer convenience, with distance b u i l t into the system i n terms of a time-and-cost factor that determines decisions customers make about the "central place" they m i l l v i s i t . 4. Expansion i n the system comes from growth i n consumption, rather than production. Thus, growth i s dispersed and must be focused through r e t a i l gravitation on a p a r t i c u l a r place to bring about change. 5. In central-place theory there i s the basic assumption that the customer goes to the central place and, f o r that reason, access to goods and services can be seen i n terms of the willingness of persons to move over a certain distance. Willingness i s measured by distance not time. 6. The expression of change i s mechanistic rather than variable, and i t does not comprehend differences i n human behavior or s o c i a l objectives, either e x i s t i n g or h i s t o r i c a l . 7. Thus, the role of the entrepreneur i s missing from central-place theory. Furthermore, the central-place structure i s predicated upon a geographically closed system with the constraints i t introduces. Notable among these i s the i n h i b i t i o n of innovation i n goods and demands. 8. It i s not i l l o g i c a l , or against actual experience i n some places, to argue for a central-place model. It i s , however, both u n j u s t i f i e d and unsupported to argue for the model as a timeless universal rather than an h i s t o r i c a l l y relevant s p e c i a l case."29 D. Ecological Theories of Urban Land Use Alternative formulations derive a concentric location pattern of d i f f e r e n t urban land uses s i m i l a r to the above urban economic model. Burgess, 3 0 i n his study of the eco l o g i c a l processes i n Chicago, developed a theory of "invasion and succession" i n urban land use change. This change i s characterized by the degree to which land i s u t i l i z e d for r e s i d e n t i a l , commercial or i n d u s t r i a l a c t i v i t i e s . Figure 2.IV/ shouts Burgess 1 view of the c i t y i n f i v e con centri c zones. Figure 2.IV. Burgess' Concentric Ring Theory The f i r s t zone i s the central business d i s t r i c t (C.B.D.). The second i s the t r a n s i t i o n a l zone where older private houses are either i n the process of being usurped by o f f i c e s and l i g h t industry, or being subdivided to form smaller dwelling u n i t s . People i n t h i s zone l i v e either i n poor housing or i n the higher classed high r i s e apartments. In the t h i r d zone are the independent working men's homes. These labourers l e f t the deteriorating t r a n s i t i o n zone to l i v e i n an area accessible to t h e i r work. The r e s i d e n t i a l zone consists of quality apartment and duplex accommodation, as well as exclusive d i s t r i c t s of single family dwellings. The commuter zone, within one hour from the C.B.D., consists of people from both inner and outlying areas. This zone i s e s s e n t i a l l y r e s i d e n t i a l , i t s inhabitants trade o f f commuting costs for e c o l o g i c a l amenities. Growth depends upon the expansion of population and the economy 32 each zone invades the adjacent outer zone. Colby suggests that c e n t r i f u g a l and c e n t r i p e t a l forces cause changes i n urban land use patterns. Centrifugal forces, i . e . higher land costs, increased congestion, etc., compel certain functions to migrate outward from the C.8.D. Conversely, c e n t r i p e t a l forces, i . e . a c c e s s i b i l i t y to inputs, p r o f i t a b i l i t y , etc., a t t r a c t other functions toward the C.B.D. These forces cause movement and interaction between zones whence the process of "invasion and succession" of urban land use evolves. The "invasion" process, caused by c e n t r i p e t a l forces, commences with an inward migration of certain functions. The "succession" process i s the aftermath of the "invasion" process. Hers, c e n t r i f u g a l forces cause an outward migration of certain functions. Therefore, urban land use patterns continually change under the process of "invasion and succession". Burgess' model ignores topography and transportation routes. Moreover, t h i s i s a model of a completely l e v e l c i t y with equal access-i b i l i t y i n a l l d i r e c t i o n s . Hoyt's 3" 5 sector theory i s a refinement over Burgess 1 theory because i t considers the growth of s i m i l a r land uses along transport-ation c o r r i d o r s . The sector theory applies mainly to r e s i d e n t i a l land uses although extensions to other land uses are conceivable. Insofar as r e s i d e n t i a l land uses are beyond the scope of t h i s t h e s i s , the location of residences influences where various firms cannot locate. The sector theory suggests that: 1. The c i t y i s c i r c u l a r with d i f f e r e n t r e s i d e n t i a l areas appearing as wedge shaped sectors which radiate outward from the C.B.D. and 2. High priced areas tend over time to move outward to the periphery of a given sector. This i s based on the following assumptions: 33 "1. The various groups i n the s o c i a l order tend to be segregated into rather d e f i n i t e areas according to t h e i r incomes and s o c i a l positions. 2. The highest income groups l i v e i n the houses which command highest prices and rents, while the lower income groups l i v e i n houses which are offered for the lower prices and rents. 3. The p r i n c i p a l growth of American c i t i e s has taken place by new building at the periphery rather than the rebuilding of older areas."34 Hoyt relates that over time as the houses deteriorate the upper income people seek neu housing. They must move further away from the c i t y i n order to obtain available building space for a neu home. As they move, t h e i r o l d homes become occupied by louer income people. Eventually the whole neighbourhood changes. This process of upper income people moving touards the periphery and louer income groups moving into the old homes of the upper income people i s c a l l e d the " f i l t e r i n g " process. Some causes of the " f i l t e r i n g " process are: deterioration with age, outdated s t y l e , and a general decline i n the neighbourhood's character. Since mobility i s a major 35 contingency of the " f i l t e r i n g " process, Hoyt's sector theory i s over-s i m p l i f i e d . E. Other Theories of Urban Land Use P a r a l l e l to the development of the l i t e r a t u r e i n ec o l o g i c a l theories of urban land use uere the land economists of the 1920's. The most notable, Haig, suggests that location r e s u l t s from the tradeoff betueen the limited complementarity of rent and the saving of transport costs so as to maximize a c c e s s i b i l i t y . These two cost items are only complementary to a degree because t h e i r sum varies with the s i t e . 3 6 Therefore, the s p a t i a l pattern of a metropolis, "••.tends to be de-termined by a p r i n c i p l e which may be termed the minimizing of the costs of f r i c t i o n . " Haig's argument i s c r i t i c i z e d because s i t e size i s not considered. Everyone could minimize the costs of f r i c t i o n and maximize a c c e s s i b i l i t y with the purchase of a small l o t i n a very dense c i t y centre. Moreover, firms such as r e t a i l e r s , tradeoff sales volume with costs of f r i c t i o n rather than merely minimize the costs of f r i c t i o n . Therefore, minimizing the costs of f r i c t i o n i s a s u f f i c i e n t c r i t e r i o n for intrametropolitan location only i f a l l 38 other costs are assumed to be held equal. Harris and Ullman improved upon the single centre assumption of Burgess' and Hoyt's theories by considering the propensity for various land uses to clu s t e r about several d i f f e r e n t nuclei throughout the c i t y . These nuclei develop due to topography, transportation, the interdependency of various a c t i v i t i e s and the a v a i l a b i l i t y of certain 39 supporting functions at a given nucleus. Ulendt, R a t c l i f f and Dingo make further modifications of the theories of urban land use. Uendt c r i t i c i z e s the s i m p l i s t i c approach of Haig, i . e . a single centre, and o f f e r s a "kitchen sink" t h e o r e t i c a l model for the aggregate value of urban land. Aggregate value i s the discounted aggregate income. Therefore, Ulendt's theory deals with c y c l i c a l changes i n aggregate land values rather than the s t a t i c e q u i l ibrium and variations of intrametropolitan land values at one point , *.* k0 i n time. R a t c l i f f provides a theory of urban dynamics based on "land use succession". He states that, "...redevelopment...(or development) . . . i s j u s t i f i e d i f the present value of the new enterprise less the c a p i t a l cost of the new improvement i s greater than the present value kl of the existing property i n o r i g i n a l form." This decision c r i t e r i o n consistent with the notion of competition, suggests that l o c a t i o n / 35 relocation decisions r e s u l t from the propensity of one use to outbid another. Ulingo developed an e x p l i c i t mathematical model of the r e s i d e n t i a l land market founded upon t r a f f i c analysis and the theories of land economists. Rents and transport costs are complementary, summing to the transport costs of the most peripheral s i t e . Transport costs incorporate the d o l l a r value of commuting time based on the marginal value of leisure time. Therefore, Ulingo's model p a r a l l e l s n von Thunen's a g r i c u l t u r a l model. F. Summary This chapter i s a b r i e f review of some major theories which underlie the intrametropolitan location theory of certain firms. Although these theories o f f e r some explanation of the urban land use of certain firms, they are too general and inadequate to s p e c i f i c a l l y apply to a given metropolitan region. Their inadequacy r e s u l t s from a p r i o r i reasoning and over s i m p l i f i e d assumptions whence a form of generality couched i n terms of imprecision. Therefore, the scope of th i s thesis i s to empirically determine which questionnaire variables (factors) influence the r e l a t i v e location/relocation behaviour of various firms located i n the G.V.R.D. The next chapter considers metropolitan Vancouver i n an h i s t o r i c a l and s t a t i s t i c a l context which i s relevant to the intrametropolitan location of various firm categories located therein. This i s reinforced with an overview of each firm category. 36 G. References ""Triedmann, J . and Alonso, UJ., Regional Development and Planning (Cambridge, Massachusetts: The M.I.T. Press, 1964), p. 2. 2von Thflnen, J.H., Per i s o l l e r t e Staat i n Beziehung auf  Landwirtschaft und Wational~konomie, Vol. I, (Hamburg, 1626). ^Nourse, H.Q., Regional Economics, (New York: McGraw-Hill Book Company, 1968), p. 1. Ricardo, D., P r i n c i p l e s of P o l i t i c a l Economy and Taxation, "On Rent", (London: J . M. Dent & Sons Ltd., 1911), pp. 33-41. 5 n von Thunen, J . H., as summarized by Gregor, H. F., ed., Geography of Agriculture: Themes In Research, (Englawood C l i f f s , N.J.: Prentice-Hall, Inc., 1970), pp. 57-68. 6 I b l d . , p. 57. 7 I b i d . , pp. 57-68. g Isard, Ul., Location and Space Economy, (New York: John Uliley and Sons, Inc., 1956), p. 200. g Goldberg, M. A., Intrametropolitan Industrial Location: Plant  Size and the Theory of Production, (University of C a l i f o r n i a , Berkeley, 1969), p. 96. ""^Alonso, Ul., Location and Land Use, (Cambridge, Massachusetts: Harvard University Press, 1964), p. 44. 1 1 I b i d . , p. 71. 1 2 I b i d . , p. 72. 1 3 B e r r y , B.J.L., Geography of Market Centers and R e t a i l Dis- t r i b u t i o n , (Prentice-Hall, Inc., Englewood C l i f f s , N.J., 1967), p. 3. ^ L o c . c i t . 1 5 L o c . c i t . ^ L f l s c h , A., Die raumliche Ordnung der Ulirtschaft, (Jena: Fischer, 1941). 37 1 7 n C h r i s t a l l e r , Ul., Die zentralen Orte In Suddeutschland, (Jena: Fischer, 1933). i n Berry, B.J.L., Op. c i t . , p. 59-60. This i s e s s e n t i a l l y Edwin von Boventer's conclusion i n "Towards a Unified Theory of S p a t i a l Economic Structure," Papers of the Regional Science Association, Vol. 10 (1962), pp. 163-87. 19 n Losch, A., The Economics of Location, (New Haven: Yale University Press, 1954). 20 Berry, B. J . L., Op. c i t . , pp. 60-61. 2 1 I b i d . , p. 61. 22 II Losch, A., The Economics of Location, (New Haven, Yale University Press, 1954), pp. 105-108. 2 3 B e r r y , B. J . L., Op. c i t . , pp. 68-73. 2**von Boventer, E., "Toward a u n i f i e d theory of s p a t i a l economic structure," Papers and Proceedings of the Regional Science Association, Vol. 10: 1963, pp. 168-172. 25 Berry, B. J . L., Op. c i t . , p. 64. 26 Berry, B. J . L., Dp. c i t . , pp. 63-68. 2 7 I b i d . t pp. 40-42, 128. 2B Isard, Ul., Location and Space Economy, (Cambridge: M.I.T. Press, 1956), p. 274. Vance, J . E., The Merchant's Ulorld: The Geography of Ulhole-* " ) , pp.:" sal i n g , (Englewood C l i f f s , N.J., Prentice-Hall, Inc., 1970), 140-142. 3 DBurgess, E.UI., "The Growth of the C i t y " , Park, R.E. e t . a l . (eds.), The City, (Chicago: University of Chicago Press, 1925), pp. 47-62. 3^Johnson, J . H., Urban Geography: An Introductory Analysis, (Oxford, Permagon Press, 1966), p. 163. 32 Colby, C.C., Centrifugal and Centripetal Forces i n Urban  Geography from Mayer and Kohn's Readings i n Urban Geography, (Chicago: University of Chicago Press, 1959), p. 287. 38 3 3Hoyt, H. and Uleimer, E.UI., Real Estate, (Neu York: The Ronald Press Co., 1966), pp. 292-293. 3 f f I b i d . , pp. 293. 3 5 I b i d . , pp. 292-294, 5DQ-5Q1. 3 6 A l o n s o , Ul., Op. c i t . , pp. 6-7. 37 Haig, R.M., "Touard an Understanding of the Metropolis," Quarterly Journal of Economics, Vol. 40 (May 1926) pp. 421-423. As quoted i n Alonso, Ul., Ibid., p. 7. 38 Alonso, Ul., Op. c i t . , pp. 7-8. 3 9 Harris, C C . and Ullman, E.L., "The Nature of C i t i e s " i n Mayer, H.M. and Kohn, C F . (eds.), Readings i n Urban Geography, (Chicago: University of Chicago Press, 1959), pp. 277-286. 40 Ulendt, P.F., "Theory of Urban Land Values," Journal of Land  Economics, Vol. 33, (August 1957), pp. 228-240. Ul R a t c l i f f , R.U., Real Estate Analysis. (London: McGrau-Hill Book Co., Inc., 1961) p. 132. 42 Alonso, Ul., Op. c i t . , p. 15. 39 CHAPTER III METROPOLITAN VANCOUVER - AIM HISTORICAL, ECONOMIC AND BUSINESS SECTOR SYNOPSIS A. Introduction This chapter presents an h i s t o r i c a l , economic and business sector synopsis of Metropolitan Vancouver. This synopsis i s only i n -tended to outline some topics which are relevant to the present lo c a t i o n / relocation, questionnaire study of firms located i n the G.V.R.D. It i s beyond the scope of t h i s thesis to develop these topics in d e t a i l . More s p e c i f i c a l l y , Metropolitan Vancouver i s discussed i n terms of: - h i s t o r i c a l development, s p a t i a l form and s i t e q u a l i t i e s ; - land j u r i s d i c t i o n and ownership; and - population and economic development. Although these are very broad topics, a b r i e f summary provides some understanding of the study area of t h i s intrametropolitan location study. Furthermore, the generalized l o c a t i o n a l response of business sectors to the study area i s outlined for each firm category. Very b r i e f consideration i s given to the intrametropolitan location theory of each category; a map and the area of each category i s presented where fe a s i b l e . 40 B. Metrc-politan Vancouver Overview of H i s t o r i c a l Development, S p a t i a l Form and Site  Qualities a) H i s t o r i c a l development The beginnings of Vancouver came in 1884 with the extension of the C.P.R. to the town of Granville, an area highly suited for a deepsea port. Vancouver was incorporated i n 1886; the f i r s t transcontinental t r a i n arrived one year l a t e r , and the boom commenced. The population reached some 13,000 people by 1890. A port flourished between Cambie and Granville Streets. East of Cambie Street and north of Hastings Street, the o r i g i n a l r e t a i l and o f f i c e centre was established i n the area known as Gastown. By 1900, the population doubled and Vancouver became an established lumber manufacturing and port centre. Between 1900 and 1910, streetcar and other infrastructure accelerated growth to a population of 100,000 people. Fishing became an important industry. By 1915, some parts of B.C.'s i n t e r i o r were s t i l l quite remote to Vancouver; di r e c t r a i l and improved road l i n k s into the Caribou and Peace River came in the 1950's.* Siemens relates that Vancouver, "...experienced economic ups and downs in the war and interwar years, with commensurate acceleration and deceleration of expansion i n the various functions of the c i t y and in in-migration. World War II and the post-war years saw a renewal of industry and trade, as well as major s h i f t s i n the c i t y ' s functional zonation and a rapid areal expansion. Industry moved beyond the old i n d u s t r i a l areas around Burrard Inlet and False Creek to the North Shore and the north arm of the Fraser and eastward along the Great Northern and Canadian National tracks. Suburbanization became "sprawl," and unsightly "ribbon developments" extended along the main roads out of the metropolitan area."2 b$ S p a t i a l form Concommitant with Vancouver's rapid growth has been i t s integ-ration with the surrounding, low density, nucleated settlements such as New Westminister. The broad theories outlined i n Chapter II are kl either too general or of an h i s t o r i c a l nature, and inadequately explain the resultant s p a t i a l form. Hardwick describes the present s p a t i a l form of metropolitan Vancouver as two concentric rings -hereby: "The centre ring i s a r a d i a l l y organized c i t y focused on the t r a d i t i o n a l central business d i s t r i c t . The outer ring i s a circumferentially-organized urbanized area made up of a series of interconnected communities and uiork-places. Although some interaction takes place along the interface between the tuo systems, there i s ^ more interaction u i t h i n the systems than betueen them." This "core-ring" form i s characterized by the region's unique s i t e q u a l i t i e s . Figure 3.1 shous the 20 minute isochrone uhich forms the boundary betueen the central and peripheral system. The central system con-s i s t s of Vancouver, West Vancouver and a r e s i d e n t i a l portion of North Vancouver d i s t r i c t (not c i t y ) . Since the urban models of the 1920's influenced Vancouver's zoning, Vancouver has r e s i d e n t i a l areas pro-jected upon a modified concentric r i n g pattern of central land uses. Harduick states that: "....Office touers dominate the uaterfront-facing C.B.D. and high-rise apartments croud the adjacent West End. Surrounding t h i s central area i s a zone of t r a n s i t i o n where waterfront, warehouse, and i n d u s t r i a l functions are being phased out. Beyond t h i s zone, apartments and converted homes provide a large inner c i t y housing area, t e s t i f y i n g to the existence of a f i l t e r i n g process in past decades. This high-density r e s i d e n t i a l zone blends into the old suburban single family areas, where, as i n many c i t i e s that expanded rapidly i n the 1920's, there are socially-segregated neighbourhoods organized along streetcar ribbons." 5 The northern component of the central system consists of r e s i d e n t i a l commuters who l i v e within 6 miles of the C.B.D."' The peripheral system, with i t s discontinuous settlement, includes the municipalities of New Westminister, Coquitlam, Surrey, Coast Mountains Grouse Mtn. Major single family areas Rurban Surrey Upland Main Apartment Areas J Main I n d u s t r i a l Areas •CBDs and Major Shopping Centers Main Public Open Space •Non-urban Uses - Ag r i -c u l t u r a l and Forest Lano] Freeway and a r t e r i a l s 20 minute CBD Isochrohi •Core-Ring Model" r—i Central Radially-Organ-—' ized System r—I Peripheral Circumferent-f —' ially-Organized System Figure 3.1 Greater Vancouver Region, 1971. Source: Harduick, W.G., "Vancouver: the Emergence of a 1 Core'Ring' Urban Pattern" i n 1 Geographical Approaches to Canadian Problems, Gentlicore, R.L., (ed.), (Scarborough, Ont.: Prentice-Hall, Inc., 1971) pp. 113. 43 and Rmnd., and large portions of Burnaby and Delta. Harduick suggests that, "...The peripheral system i s poly-nucleated, i n t e r -connected by a u e l l developed system of freeways, a r t e r i a l roads, railways, and navigable waterways. As suggested by the "core-ring" model, more residents f i n d employment, shopping, and recreational opportunities within t h i s system,than within the Vancouver C.B.D.-oriented system... The recent expansion of population i n the peripheral ring i s related to growth of l o c a l economic a c t i v i t y rather than to growth i n the core c i t y . The construction of freeways has improved access between r e s i d e n t i a l areas, work, and shopping within the outer municipalities, but because the freeways stop at the borders of Vancouver interaction with the core system i s restricted."8 In summary, the managerial, professional, c l e r i c a l and service occu-pations characterize the central system; some i n d u s t r i a l and wholesale firms are moving to the peripheral system. Regional shopping centres and related services, as well as public i n s t i t u t i o n s , also f u l f i l l the g needs of peripheral neighbourhoods. Metropolitan Vancouver i s comprised of a l l fourteen municipal-i t i e s i n Greater Vancouver as well as the e l e c t o r a l areas of the University Endowment Lands, Ioco-Buntzen, and Bowen Island. The Greater Vancouver municipalities are: Vancouver, Burnaby, New Westminister, North Vancouver City and D i s t r i c t , West Vancouver, Coquitlam, Port Coquitlam, Port Moody, Richmond, Surrey, White Rock, Delta, l_ions Bay. Metropolitan Vancouver and the Greater Vancouver Regional D i s t r i c t (G.V.R.D.) are both the same geographical areas by d e f i n i t i o n . However, the G.V.R.D. also refers to the regional government whose domain i s Metropolitan Vancouver. c) Site Qualities Metropolitan Vancouver, situated at the western end of the Lower Fraser Valley, i s located in the southwest corner of the B r i t i s h Columbia mainland. Vancouver " . . . i s the t h i r d largest metropolitan 44 area i n Canada encompassing...(approximately)...half of the p r o v i n c i a l population of over 2 , • • • , 0 0 0 . H e r e , "...the Lower Fraser valley affords a r e l a t i v e l y easy route way through the coast batholith, and v i r t u a l l y the only part of the coast with a climate, topography and s o i l s conducive to intensive a g r i c u l t u r a l and urban development.""^ Stager and Wallis suggest that t h i s climate i s r e l a t i v e l y mild with a "...mean annual temperature...around 50°F. It may be one or two 12 degrees higher i n and around Metropolitan Vancouver...." Greater Vancouver has at least 200 fr o s t free days. However, the v a r i a b i l i t y of f r o s t i s a pa r t i c u l a r concern of farmers because i t i s uncertain precisely when the l a s t spring f r o s t i s over. Compared to other Canadian urban areas, the region i s a rather wet climate with great s p a t i a l v a r i a b i l i t y i n i t s p r e c i p i t a t i o n l e v e l s . ^ Examples of yearly p r e c i p i t a t i o n levels are: "Ladner 36", Vancouver Airport 41", Vancouver Dunbar 52", Vancouver City 60", Cypress Park (West Vancouver) 67", Hollyburn Ridge 113"."1** It i s noted that most of the p r e c i p i t a t i o n f a l l s as r a i n ; only about 5% f a l l s as snow.''""' The topography of the Lower Fraser Valley i s quite f l a t with less than 500 feet of r e l i e f i n most a r e a s . ^ This p l a i n , which often requires dyking, i s subject to periodic flooding i n several areas l7 and poses a constraint on potential uses. The region i s bounded to the north by the Coast Mountain Range and to the southeast by the Cascade Mountains. Elevations of 3,000 to 4,000 feet are common i n the 18 mountainous areas. A further topographic feature of Metropolitan Vancouver i s i t s i c e - f r e e , natural harbour. This harbour i s readily accessible to the P a c i f i c Ocean yet sheltered from open waters by Vancouver Island. Although about one-half of the Valley has good s o i l for 19 agriculture , Winter states that, "...an unfortunate truth about the Lower Fraser Valley i s that i t has no r e a l l y f i r s t - c l a s s a g r i c u l t u r a l 2D s o i l s . " S o i l foundation conditions, p a r t i c u l a r l y important for urban areas, are discussed l a t e r i n t h i s chapter. Outline of Land J u r i s d i c t i o n and Ownership a) Land j u r i s d i c t i o n Given the above overview of Metropolitan Vancouver's h i s t o r i c a l development, s p a t i a l form and unique s i t e q u a l i t i e s , a b r i e f review of the j u r i s d c i t i o n and ownership of the port and dry land i s required. Figure 3.II shows the three federal organizations which administrate certain waterways in Metropolitan Vancouver. Control exercised depends on the nature of ownership of the land covered by water (Figure 3.III). National Harbours Board (N.H.B.) exert the strongest control over the inner harbour. This i s because i t s ownership of the ocean f l o o r and control of shipping and navigation enables t h i s Board to lease these lands for a given use. In those waterways where the P r o v i n c i a l Govern-ment or private interests own the sea, r i v e r bottom or foreshore; Federal control i s lessened because the precise nature of t h i s j u r i s -21 d i c i t i o n i s not c l e a r l y established. The two Harbour Commissions receive minimal interference from the N.H.B. because they consistently provide a p r o f i t a b l e operation. Moreover, there i s cooperation with the P r o v i n c i a l Government who provide t h e i r water lands and a share of the revenue in return for the administration of t h e i r harbour j u r i s d i c t i o n . Two factors further contribute to the Harbour Commission' success: 1. The p r o f i t motive creates an e f f i c i e n t operation. 2. Constraints and contingencies are dealt with e f f e c t i v e l y because several of the commissioners are l o c a l l y based members.22 Figure 3.II, Greater Vancouver Regional D i s t r i c t : Harbour Administration. CD* I N Fras«r River Vtabour CommCsston NortY* FrfcS**" Harbour Commissioners National Harbours Board o 1 £ 3 Source: Griggs, N.J.F., Urban Grouith and Transportation Implications  in Port Development: A Case Study, Vancouver, B.C. (Unpublished M.A. Thesis, U.B.C.: 1967) p. 197. k7 Figure 3 . I l l Greater Vancouver Regional D i s t r i c t : Ownership of Land Covered by Water N I I Gov't of Canada I I Gov't of B.C. I f e Private Source: Griggs, N.J.F., Urban Growth and Transportation i m p l i c a t i o n s  in Port Development: A Case Study, Vancouver, B.C. (Unpublished M.A.Thesis, U.B.C: 1967) p. 196. UB Further control of navigable waters i s attributable to the planning function of Municipal organizations. A l l municipalities i n the Greater Vancouver area border on, or extend into navigable water. To implement planning and land use decisions, a l l municipalities use zoning by-laws. Municipal zoning i s ef f e c t i v e only to the extent that a municipality can forego increased tax and assessment revenue rendered by market demands for changes i n land use or i n t e n s i t y . Few, i f any, municipalities can afford losses of revenue opportunities. The P r o v i n c i a l government can also amend or improve a l l Municipal l e g i s l a t i o n . Therefore, Municipal control of navigable waters as well 23 as dry land i s r e l a t i v e l y l i m i t e d . A regional government, the G.V.R.D., coordinates the r e l a t i v e l y i n e f f e c t i v e control of the mu n i c i p a l i t i e s . The G.V.R.D. assumes functions which are impractical for a given municipality to undertake, either because they involve several municipalities or because they require large finances. The G.V.R.D. approaches area problems and provides necessary services such as regional planning on a cooperative basis. Consequently, a l l municipalities in the G.V.R.D. participate in the planning function. The G.V.R.D. i s further responsible for hospitals, parks, water supply, provision of sewerage f a c i l i t i e s , 2k housing and a i r p o l l u t i o n . Railroads have further j u r i s d i c t i o n over dry land due to th e i r incorporating l e g i s l a t i o n . This l e g i s l a t i o n provides for the right of expropriation and the right to acquire land. Railroads are also 25 subject to both Federal and Pro v i n c i a l l e g i s l a t i o n . The Federal Government gains j u r i s d i c t i o n over dry land primarily through The Expropriation Act of Canada. Section 3 of t h i s 49 Act provides: "Any interest i n land, that, i n the opinion of the Minister, i s required by the Crown for a public work or other public purpose may be expropriated by the ^ Crown in accordance with the provisions of t h i s Part." and Section 4(1): "Whenever, in the opinion of the Minister, any interest i n land i s required by the Crown for a public work or other public purpose, the Minister may request the Attorney General of Canada to register a notice of i n -tention to expropriate such interest, etc."27 b) Land Ownership Given the above j u r i s d i c t i o n a l considerations, very b r i e f attention must be paid to the rights of ownership over port and dry land. The greatest i n t e r e s t i n r e a l property i s c a l l e d fee simple. Ring suggests that even a fee simple estate, " . . . . i s subject to certain Government li m i t a t i o n s on ownership, imposed for the mutual welfare of a l l c i t i z e n s . These l i m i t a t i o n s f a l l under: 1. The police power of government. 2. The r i g h t of eminent domain. 3. The right of taxation. 4. Escheat to the s t a t e . " 2 8 The Land Registry Act of B r i t i s h Columbia implements the modified Torrens system in order to establish land i n t e r e s t s . Aside from the r e g i s t r a t i o n of t i t l e s , modifications enable the r e g i s t r a t i o n of any acceptable instruments, i . e . options, agreements for sale, etc. under 29 Section 53 and the r e g i s t r a t i o n of trusts under Section 149. An advantage of the Torrens system i s the clear d e f i n i t i o n of the rights of a l l p a r t i e s . Security of t i t l e i s provided by the p r i n c i p a l of i n d e f e a s i b i l i t y which means that which cannot be made void, destroyed or f o r f e i t e d . Invoking t h i s p r i n c i p a l , "...The main object of the Act...is to save persons dealing with registered proprietors from the trouble and expense of going behind the r e g i s t e r , i n order to investigate the history of t h e i r author's t i t l e , and to s a t i s f y themselves of i t s v a l i d i t y . That end 50 i s accomplished by providing that every one mho purchases, i n bona fide and for value, from a registered proprietor, and enters h i s . . . ( i n t e r e s t ) ...on the r e g i s t e r , s h a l l thereby acquire an i n -defeasible r i g h t , notwithstanding the i n f i r m i t y of his author's t i t l e . " 3 0 Should anyone lose his right to land through the operation of the Act, an assurance fund provides reimbursement.'5''' Lands completely covered with water are not t y p i c a l l y the subject of c e r t i f i c a t e s of indefeasible t i t l e . However, Davis suggests that i f a stream flows through private land, "...there i s ownership i n the bed of the r i v e r . . . If the stream i s navigable the public w i l l have a . right to pass up and down upon the water, the con-verse holds i f i t i s not navigable. I f the r i v e r forms the boundaries of two properties, each owner w i l l own to the middle."32 In Johnson v. Anderson, i t i s held that, "...the r i p a r i a n owner s t i l l has the right to make use of such water and s t i l l has a remedy against a wholly wrongful and unauthorized diversion of the stream which deprives him of such right..."33 Therefore, in the case of land covered with water, as well as dry land, l e g i s l a t i o n covers the rights of ownership. Figure 3 . I l l shows the ownership of land covered by water. Most of the inner harbour i s ouned by the Federal Government except for a few private ownerships of which the Canadian P a c i f i c Railway Company (C.P.R.) i s the p r i n c i p a l owner. Griggs further rela t e s that, "...the Federal Government i s the owner of a l l lands seaward from the ordinary low water mark, outside of the bays, harbours and estuaries, to the outer l i m i t of the t e r r e t o r i a l sea of Canada..."35 The P r o v i n c i a l Government owns, "...most of the lands seaward from high water from the F i r s t Narrows to the Port of Vancouver l i m i t s , and of most of the remaining lands below high water mark in the metropolitan Vancouver area, including the Fraser River and False Creek." 3 6 51 Private interests have some holdings i n the Fraser River and False Creek. •n dry land, the Federal Government, " . . . i s limited to holdings of Indian reserves, defence establishments,...(Vancouver International A i r p o r t ) . . . , and some other waterfront lands in Burrard Inlet and 37 False Creek." The Pro v i n c i a l Government owns a l l dry land, "...that has not been a l i e n a t e d , . . . ( i n c l u d i n g ) . . . a l l streets and roads i n 38 unorganized t e r r i t o r y and municipalities except Vancouver." The Municipality of Vancouver owns a l l streets and public access within 39 i t s j u r i s d i c t i o n . Railways such as the C.P.R. further own the lands associated with t h e i r trackage and other f a c i l i t i e s . The remaining land i n the G.V.R.D. i s privately held by several individuals and private corporations. Population and Economic Summary a) Population Any discussion of a regional economy must necessarily consider that region's population. Table 3.1 shows that for the past twenty years, the population of the G.V.R.D. has remained at about k&% of the population of B.C. The present G.V.R.D. population i s approximately one m i l l i o n persons. Table 3.II shows the population d i s t r i b u t i o n of locations used i n th i s study. (A map of these locations i s shown i n Figure 5.1 ). The larger populations reside i n the municipalities of Vancouver, Burnaby, and Surrey. The rapid growth of both the G.V.R.D. and B.C. populations i s attributable to r e l a t i v e l y high migration and low b i r t h rates. It i s f e l t that various amenities such as transportation f a c i l i t i e s , Table 3.1 Population of the G.V.R.D. Compared to B.C Population of B.C. Population G.V.R.D. Year CQDD's) COOO's) % 1971 2,184.6 1,021.8 47 1965 1,797.0 887.4 49 1961 1,629.1 783.7 48 1956 1,398.5 664.6 48 1951 1,165.2 557.1 48 Sources: Municipal S t a t i s t i c s , 1951-1971, The Department of Municipal A f f a i r s , V i c t o r i a , B.C. "Population 1921-1971", D.B.S., Ottawa: Catalogue #91-512. Table 3.II Population of Locations used i n t h i s Study. Municipality 1971 Census 1966 Census 1961 Census 1956 Census 1951 Census Neu Westminster 42,835 38,013 33,654 31,665 28,639 North Vancouver 31,847 26,851 23,656 19,951 15,687 Port Moody 10,778 7,021 4,789 2,713 2,246 Vancouver: C.B.D. 44,260 40,793 33,577 32,482 36,221 Zone 2 101,770 102,428 95,774 95,299 74,182 Zone 3 104,300 100,813 90,845 83,577 99,914 Zone 4 179,445 169,320 155,833 146,695 136,636 Burnaby 125,660 112,036 100,157 83,745 58,376 Coquitlam 53,230 40,916 29,053 20,800 15,697 Delta 45,860 20,664 14,597 8,752 6,701 Richmond 62,121 50,460 43,323 25,978 19,186 Surrey 98,601 81,826 70,838 49,366 33,670 West Vancouver 36,440 31,987 25,454 19,197 13,990 Source: Municipal S t a t i s t i c s , 1951-1971, The Department of Municipal A f f a i r s , V i c t o r i a , B.C. 54 a favourable environment and other factors, some of which comprise the questionnaire variables, cause the economic base to grow whence the population increment via migration. Growth of Metropolitan Vancouver i s expected to increase at about 14% for each of the next fi v e year periods. Larger rates of growth are anticipated for the North Shore, South Vancouver, Richmond, Delta, and Port Moody, b) Economic Development The structure of Metropolitan Vancouver's economic base i s characterized by, "...a transportation focus where transcontinental highways, railways and airways converge on the Greater Vancouver port." The destinies of Vancouver's economy and i t s port are d i r e c t l y r e l a t ed. Duncan suggests that, This i s i l l u s t r a t e d by the f a c t that the 1971 p a y r o l l covering Longshoremen in the Lower Mainland amounted to more than $50 m i l l i o n . Aside e n t i r e l y from direct wages, there are many businesses i n a l l port c i t i e s that are dependent on port a c t i v i t i e s . These include a l l manner of services from ships chandlers and tug boats to laundries and t a x i cabs. It i s estimated that for each ton of cargo passing through the port of Vancouver, the l o c a l economy i s enhanced by about f i f t e e n d o l l a r s . This suggests that the 35 m i l l i o n tons of cargo handled in 1971 generated some $500 m i l l i o n . n L * 2 Table 3 . I l l summarizes the cargo tonnages for Vancouver Harbour i n 1969 and 1970. Table 3.III. Summary S t a t i s t i c s for Vancouver Harbour, 1969 and 1970 Vessel A r r i v a l s No. Vessel Tonnage No. Cargo Tonnage No. Grain Elevator Shipments Bu. 1970 1969 19,105 17,276 21,283,905 23,853,639 23,080,469 27,158,913 162,292,838 215,712,297 Source: Canada Year Book, 1972, D.B.S., Cat. No. CS-11-202/1972 Approximately 38 m i l l i o n tons of cargo mere shipped from Vancouver 43 Harbour i n 1972. New Westminster shipped about 5 m i l l i o n tons i n 1969. The largest international export tonnages shipped from Vancouver Harbour i n 1969 mere: wheat,ppotash, sulpher i n ores, and bituminous coal i n that order. The largest international import tonnages con-si s t e d of: sand and gravel, f u e l o i l , s a l t , and other commodities not l i s t e d . Coastwise tonnages were largest for exports of: pulpwood, f u e l o i l , hogged f u e l , and gasoline while the largest imports con-44 s i s t e d of: sand and gravel, logs, newsprint. Therefore, resource industries s i g n i f i c a n t l y depend on the port of Vancouver to d i s t r i b u t e t h e i r goods to market. In order to comprehend the meaning of these shipping tonnages, a comparison with other ports i s required. Duncan states that, "The port of Vancouver i s the largest on the west coast of North America, substantially exceeding the tonnage handled by such ports as Seattle, San Francisco, and Los Angeles. Indeed, the port of Vancouver ranks within the leading f i f t e e n ports of the world."45 Port a c t i v i t y also flourishes i n peripheral areas due to i n -creased shipments of coal, sulphur, and f e r t i l i z e r s through the terminals at Port Moody, North Vancouver and Roberts Bank. Table 3.IV shows that these commodities rather than lumber or grain explain the 46 continued growth of peripheral ports and port related a c t i v i t i e s . 56 Table 3.IV/. Foreign Cargo by Commodity, in mill i o n s of tons. 1965 1966 1967 Wheat 3.6 4.2 3.4 Lumber 1.3 1.1 1.2 Coal .4 .8 1.1 Sulphur .5 .5 .8 F e r t i l i z e r .7 1.1 1.1 Source: Hardwick, W.G., "V/ancouver: the Emergence of a 'Core-Ring 1 Urban Pattern" i n Geographical Approaches to Canadian  Problems, Gentlicore, A.L. (ed.), (Scarborough, Ont.: Prentice-Hall, Inc., 1971) p. 117, as quoted from the Dominion Bureau of S t a t i s t i c s Report, Cat. #5^-203, 1968. The following discussion of Greater V/ancouver's economic base i s limited to the number of categories with available s t a t i s t i c s . This s i t u a t i o n i s due to the secrecy provisions of the S t a t i s t i c s Act. The economic base of Metropolitan V/ancouver i s somewhat re-f l e c t e d by the d i s t r i b u t i o n of the labour force amongst the various economic sectors. It i s noted that the economic base i s not s o l e l y re-f l e c t e d by the number of employees because productivity can increase with automation and fewer employees. Thus, a large portion of the primary sector i s c a p i t a l rather than labour intensive. Table 3.V/ shows the t o t a l employment for Greater V/ancouver by industry. In general, much of the labour force i s employed in the manufacturing and service sectors. The majority of employees work in the durable goods category of the manufacturing sector and i n either the finance/real estate or personal services category of the service sector. Table 3.V also shams that i n the past ten years, substantial employment growth occurred i n the manufacturing, service, trade, and infrastructure categories. wages provide some indication of the more pro f i t a b l e portions of the economic base. Table 3.VI shows the average weekly earnings by industry for Greater Vancouver. Construction categories by far have the highest weekly s a l a r i e s . This i s followed by the manu-facturing sector, i n p a r t i c u l a r the paper and a l l i e d industries category; wholesalers; and the transportation and water service categories of the infrastructure sector. R e t a i l and service sectors earn considerably lower weekly s a l a r i e s than the other sectors. Thus, the manufacturing sector employs the largest number of people and pays r e l a t i v e l y well, while the service sector pays quite low and employs a large number of people. It therefore appears that, i n terms of wages and number of employees, manufacturing i s the most dominant sector of Metropolitan Vancouver. The location quotient method helps to i d e n t i f y those sectors of the Greater Vancouver economy which s i g n i f i c a n t l y contribute to the economic base. The location quotient measures, "...the extent to which employment in a given industry category i n the c i t y exceeds or f a l l s short of the pro rata share of that c i t y i n t o t a l . . . ( p r o v i n c i a l kl or)...national employment." Table 3.VII presents a business structure analysis via location quotients of Greater Vancouver. These location quotients were calculated for November, 1972 in order to coincide with the time of the questionnaire study. For a n a l y t i c a l purposes, a " d i s t i n c t i v e " industry has a location quotient which exceeds 1.10 while a "dominant" industry has a quotient greater than 1.50. It i s cautioned Table 3.1/. Employment by Industry for Urban Areas ('OOD's): Greater V/ancouver SIC # Industry Feb. '73 Feb. '72 Jan. '71 Jan. '70 Jan. '69 Feb.'64 100-399 Manufacturing 59.3 58.7 55.6 60.0 56.4 46.0 Durable Goods 34.5 34.9 32.0 36.2 34.0 Non-durable Goods 24.8 23.8 23.5 23.8 22.4 100-147 Food and Beverages 9.7 9.0 8.9 9.0 8.9. 6.9 100-139 Foods 8.1 7.4 7.4 7.6 7.5 250-259 Wood Products 13.6 14.2 13.4 14.6 15.1 15.6 251 Sam, Shingle and Planing M i l l s 6.4 7.1 6.8 7.2 7.7 13.8 252 V/eneer and Plywood M i l l s 4.9 4.9 4.9 5.3 5.4 270-274 Paper and A l l i e d Industries 4.6 4.3 4.5 ?; 4.7 4.1 2.7 300-309 Metal Febricating Industries 5.9 5.9 5.6 6.0 5.1 6.9 400-421 Construction 11.3 14.0 10.9 11.4 9.6 10.9 404,421 Building 8.9 10.9 9.5 9.8 8.2 7.9 404 General Contractors 4.9 5.1 5.4 4.8 4.5 421 Special Trade Contractors 3.9 5.7 4.1 5.0 3.6 500-579 Transport, communic, & other u t i l i t i e s 38.2 36.5 32.6 32.9 30.4 19.2 Transportation Equipment 3.1 Public U t i l i t y Operation 3.2 500-519 Transportation 19.2 18.5 15.5 17.0 16.0 504-505 Water Transport and Services 7.3 7.3 6.4 7.2 7.1 6.1 543-548 Communication 11.6 10.9 10.3 9.1 8.1 6.5 Table 3.V. (continued) SIC # Industry Feb. '73 Feb. '72 Jan. '710! Jan. 178 Jan. J69 Feb. '6' 600-699 Trade 49.7 48.6 44.1 46.4 44.1 35.5 600-629 Wholesale Trade 17.6 17.3 16.4 17.0 15.9 14.0 630-699 R e t a i l Trade 32.1 31.4 27.8 24.4 28.2 21.5 631 Food Stores 5.4 5.3 4.7 5.1 4.7 642 Department Stores 15.7 14.0 13.3 14.3 14.4 700-737 Finance, Insurance & Real Estate 17.3 16.7 15.8 15.3 13.8 702-704 Financial I n s t i t u t i o n s 11.2 10.1 9.8 9.7 8.3 731-737 Insurance and Real Estate 6.1 6.6 6.0 5.6 5.4 731 Insurance Carriers 3.6 4.0 3.9 3.8 3.7 S50-899 Service 31.6 32.0 30.5 29.8 26.1 14.7 861-869 Business Services 8.9 8.4 8.8 8.5 7.4 871-879 Personal Services 12.8 14.6 12.6 13.2 11.8 875 Hotels, Restaurants and Taverns 11.7 13.7 11.4 11.7 10.4 031-899 Indust r i a l Composite 208.1 207.3 190.2 196.6 181.0 140.0 Source: "Employment Earnings and Hours", D.B.S., Ottawa: Catalogue 72-002, Monthly • This table i s constructed from data which apply to the Vancouver Census Metropolitan Area (CMA). This area i s e s s e n t i a l l y the G.V.R.D. with Bowen Island and Lion's Bay excluded. Table 3.VI. Average Weekly Earnings by Industry ($'s): Greater Vancouver. SIC Industry Feb.'73 Feb.'72 Feb.'71 100- •399 Manufacturing 184.89 170.19 150.38 Durable Goods 192.08 175.30 153.13 Non-durable Goods 174.90 162.68 146.54 100- •147 Food and Beverages 172.89 159.22 143.59 100- •139 Foods 169.99 155.73 140.02 250- •259 Wood Products 186.02 168.78 138.78 251 Sau, Shingle and Planing M i l l s 188.03 170.32 142.20 252 Veneer and Plywood M i l l s 176.86 162.26 158.76 270- •274 Paper and A l l i e d Industries 215.65 200.29 124.39 300- •309 Metal Febricating Industries 194.34 175.71 180.39 400- •421 Construction 233.39 236.88 194.83 404, 421 Building 229.53 228.46 194.08 404 General Contractors 220.52 222.85 191.39 421 Special Trade Con-tractors 240.86 233.47 197.54 500- •579 Transport, communic. & other u t i l i t i e s 195.23 181.99 161.97 Transportation Equipment Public U t i l i t y Operation 500- •519 Transportation 199.67 185.16 173.45 504- •505 Water Transport and Services 202.90 197.32 188.37 Jan.'70 Jan.'69 Jan.'68 Jan.'67 Jan.'66 Jan.'65 143.13 129.09 121.25 113.27 107.30 102.55 147.17 131.63 124.08 108.46 109.34 105.30 137.00 125.29 117.17 109.57 104.19 98.54 133.08 121.96 112.37 104.94 99.15 96.50 132.63 120.61 111.01 102.83 97.36 94.24 140.28 126.47 123.86 115.30 109.15 106.34 135.95 129.26 124.69 115.70 110.53 105.26 141.00 116.70 120.14 112.24 103.93 105.39 172.77 156.65 145.00 135.79 129.04 117.32 151.27 134.00 122.81 174.76 145.68 141.49 144.28 130.07 116.93 173.73 145.11 140.50 143.88 128.82 116.56 168.28 140.84 139.11 178.94 149.83 142.10 149.49 140.11 131.19 128.10 118.19 109.35 150.06 139.37 131.12 154.82 144.87 139.43 Table 3.1/1. (continued) SIC # Industry Feb.'73 Feb. 172 Feb.'71 Jan.'70 Jan.'69 Jan.'68 Jan.'67 Jan. 166 Jan.'65 543-548 Communication 174.75 167.71 131.84 135.35 126.42 121.44 600-699 Trade 144.57 130.88 116.56 114.91 104.63 95.65 88.40 85.60 82.89 600-629 Wholesale Trade 182.54 168.07 155.37 140.42 130.08 119.05 630-699 Re t a i l Trade 123.74 110.41 93.57 100.21 90.34 82.55 631 Food Stores 155.52 132.92 54.06 109.55 90.46 82.62 642 Department Stores 103.64 98.91 93.46 90.75 84.33 74.82 700-737 Finance, Insurance & Real Estate 149.64 142.01 127.20 120.74 116.86 102.85 98.15 95.77 88.91 702.704 Fina n c i a l I n s t i t -utions 148.41 140.36 125.93 121.25 120.19 103.16 731-737 Insurance and Real Estate 151.91 144.55 129.36 119.86 111.64 102.40 731 Insurance Carriers 146.72 149.36 131.69 117.08 111.61 103.35 850-899 Service 126.00 112.46 108.20 99.10 92.74 86.19 85.54 81.64 73.60 861-869 Business Services 184.42 173.51 159.92 148.04 137.03 129.49 871-879 Personal Services 92.60 81.67 78.70 72.73 70.38 62.92 875 Hotels, Restaurants and Taverns 90.19 79.76 74.13 70.39 69.14 61.63 031-899 Industrial Composite 168.00 156.53 139.09 131.02 119.73 111.88 107.33 101.80 95.85 Source: "Employment Earnings and Hours", D.B.S., Ottawa: Catalogue 72-002, Monthly. This table i s constructed from data which apply to the V/ancouver Census Metropolitan Area (CMA). This area i s e s s e n t i a l l y the G.V/.R.D. with Bowen Island and Lion's Bay excluded. 62 Table 3.VII. Business Structure Analysis af Greater Vancouver, 1 November 1972. SIC Group and Industry No. of Employees Location Quotient Location Quotient V^r^co^ver (Canada) 3 (B.C.)4* I. Primary Industries' 400-£21 Construction 13.1 404,421 Building 10.1 (77.1%) 2 1.15 1.18 404 General Contrac-tors 5.5 (42 ) 1.48 1.11 421 Special Trade Contractors 4.6 (35.1) .9 1.28 I I . Manufacturing 100-399 Manufacturing 59.7 Durable Goods 34.4 (57.6) 1.17 .95 Non-Durable Goods 25.3 (42.4) .83 1.07 100-147 Food and beverages 10.2 (17.1) 1.34 1.31 100-139 Foods 8.5 (14.2) 1.29 1.28 250-259 Wood Products 13.7 (23) 3.97 .65 251 Saw, Shingle & Planing M i l l s 6.3 (10.6) 3.11 .41 252 Veneer & Plywood M i l l s 5.0 (8.4) 8.4 1.25 270-274 Paper & A l l i e d Industries 4.6 (7.7) 1.03 .51 300-309 Metal Febric-ating Industries 5.9 (9.9) 1.4 1.8 I I I . R e t a i l Trade 600-699 Trade 53.2 630-699 R e t a i l Trade 35.2 (66.2) .96 .97 631 Food Stores 5.6 (10.5) .80 .90 642 Department Stores 18.1 (34) 1.43 1.1 IV. Wholesale Trade 600-699 Trade 53.2 600-629 Wholesale Trade 17.9 (33.7) 1.08 1.06 63 Table 3.VII. Business Structure Analysis of Greater Vancouver, November 1972 (continued) SIC Group and Industry No. of Employees V. Infrastructure * 500-579 Transp., Communic. & other u t i l i t i e s 500-519 Transportation 504-505 Water Transport & Services 543-548 Communication 37.8 19.0 (50.3) 7.1 (18.8) 11.3 (29.9) VI. Financial & Admin. Services 700-899 Total service 700-737 Finance, Ins., Real Estate 702-704 Financial Institutions 731-737 Insurance & R. Est. 731 Insurance Carriers 850-899 Service 861-869 Business Serv. 871-879 Personal Serv. 875 Hotels, Restaur-ants & Taverns 49.6 17.2 (34.7) 10.8 (21.8) 6.4 3.8 32.4 8.7 14.4 (12.9) (7.7) (65.3) (17.5) (29.0) Location Quotient (Canada) .85 3.3 1.2 13.4 (27 ) .88 .9 .84 .69 1.08 1.22 1.06 1.13 Location Quotient (B.C.) .80 1.54 1.26 .97 .88 1.15 N.A.5 1.02 1.27 .81 .83 Source: "Employment Earnings and Hours", D.B.S., Ottawa: Catalogue 72-002, December, 1972, pp. 16, 18, 20, 40, 42, 70, 72. Footnotes ^This table i s constructed from data which apply to the Vancouver Census Metropolitan Area (CMA). This area i s e s s e n t i a l l y the G.V.R.D. with Bowen Island and Lion's Bay excluded. Parenthetical figures represent the per cent of Greater Vancouver's t o t a l employment i n a given industry subpopulation. In the case of primary industries, only the t o t a l construction employment i s used due to the un a v a i l a b i l i t y of data. Table 3.VII (continued) These location quotients are calculated by taking for each respective SIC group (Per cent of t o t a l Greater Vancouver's manufacturing employment i n respective SIC group) 4- (Per cent of t o t a l National manufacturing employment i n respective SIC group). These location quotients are calculated by taking for each respect-ive SIC group (Per cent of t o t a l Greater Vancouver's manufacturing employment in respective SIC group) -J- (Per cent of t o t a l B r i t i s h Columbia's manufacturing employment in respective SIC group). 5 Due to the secrecy provisions of the S t a t i s t i c s Act, p r o v i n c i a l employment i s not published for Insurance C a r r i e r s . Therefore, the location quotient i s not calculable. 65 that the location quotient does not always provide a good estimate of the economic base m u l t i p l i e r due to s i g n i f i c a n t understatement of export a c t i v i t i e s . Table 3.VII suggests that wood products; saw, shingle, and planing m i l l s ; and water transport and services are dominant i n -dustries i n Greater Vancouver with respect to Canada. These wood industries are merely d i s t i n c t i v e industries i n Greater Vancouver r e l a t i v e to B.C. This indicates that B.C. i s quite a specialized province while Greater Vancouver i s even more spe c i a l i z e d i n these wood indu s t r i e s . Thus, Greater Vancouver's manufacturing structure i s oriented about primary resources. Metal f a b r i c a t i n g industries in Greater Vancouver are dominant r e l a t i v e to B.C.; d i s t i n c t i v e r e l a t i v e to Canada. This suggests that most of B r i t i s h Columbia's metal f a b r i c -ating i s spe c i a l i z e d in Greater Vancouver yet t h i s degree of s p e c i a l -i z a t i o n i s not very high i n the Canadian context. D i s t i n c t i v e i n -dustries with respect to B.C. and Canada are: building; general con-tractors; food and beverages; foods; department stores; communication; and business services. B r i t i s h Columbia's insurance and r e a l estate; and special trade contractors are sp e c i a l i z e d i n Vancouver but th i s degree of s p e c i a l i z a t i o n i s below the national average. Hotels, restaurants and taverns are d i s t i n c t i v e industries in Vancouver r e l a t i v e to Canada but Vancouver i s unspecialized in th i s industry with respect to B.C. Further insight into Metropolitan Vancouver's economic base i s provided i n Table 3.VIII. Although t h i s table refers to selected indicators of economic a c t i v i t y for B.C. in 1971, i t i s thought that these P r o v i n c i a l s t a t i s t i c s portray the context of Metropolitan 66 Vancouver's economic base. Table 3.VIII suggests that B.C. maintains an export to import r a t i o of approximately tua to one. S i g n i f i c a n t increases i n personal income over the past ten years have kept pace with the (Vancouver) consumer price index. However, B r i t i s h Columbia's unemployment rate i s quite high at 8.7%. It i s also evident that the actual value of manufacturing production exceeds that of the primary industries l i s t e d by a factor of four. Therefore, the economic base of Metropolitan Vancouver resides i n a f i n a n c i a l l y strong economy characterized by a r e l a t i v e l y high unemployment rate and high actual value of manufacturing production. Table 3.IX provides some insight into the future of Metropolitan Vancouver's economic base. Although t h i s table considers the Lower Mainland, most economic a c t i v i t y of t h i s area comprises Metropolitan Vancouver. The c l a s s i f i c a t i o n of construction as a secondary rather than a primary industry i s arbitrary and does not s i g n i f i c a n t l y a l t e r forecast r e s u l t s . Table 3.\IX Indicates the present and forecasted trend of i n -creasing employment in the t e r t i a r y sectors and decreasing employment in the primary and secondary sectors. In spite of decreases i n primary and secondary employment, productivity continues to increase i n these sectors. These trends p r e v a i l throughout the Canadian economy. Given the natural resources of the Vancouver Region, Metropolitan Vancouver's "...manufacturing has a strong processing emphasis with i t s f a b r i c a t i o n geared to serving limited but growing domestic markets....Expansion of the region's manufacturing role w i l l depend on growth of the regional market, i n -creased manufacture of equipment for use i n the province's expanding resource industries and the a b i l i t y of producers to achieve technical superiority i n innovating and pro-ducing for mass export markets."^9 67 Table 3.VIII. Selected Indicators of Economic A c t i v i t y B r i t i s h Columbia, 1961 - 1971 Increase Units 1961 1971 1961-1971 Population (mid-year) '000 1,629 2,185 34.1 Employment (average) Total •ODQ 527 847 60.7 Manufacturing •000 1DD 150* 50.0 Unemployed % rate 7.5% 8.7% Personal Income Total $ M i l l i o n 3,003 7.900 163.1 Per Capita 1,843 3,616 96.2 Consumer Prices (Vancouver) Index 100.0 127.0 27.0 (1961 * 1DD) Re t a i l Trade S M i l l i o n 1.604 3,632 126.4 Cheques Cashed $ M i l l i o n 20,434 64,994 218.1 Value of Production Agriculture (Farm Cash Receipts) S M i l l i o n 135 221 63.7 Forestry (Logging, value added) $ M i l l i o n ** 395* Mining $ M i l l i o n 180 527 192.8 Fishing (Landed Value) 1 M i l l i o n 40 59 47.5 Manufacturing (Value of Factory Shipments) $ M i l l i o n 1,927 4,013 108.3 E l e c t r i c Power Consumption M i l l i o n kwh 13,421 28,571 112.9 Gasoline Consumption M i l l i o n g a l . 339 645 90.3 •verseas Trade through B r i t i s h Columbia Customs Ports Exports $ M i l l i o n 1,081 2,771 156.3 Imports i M i l l i o n 422 1,340 217.5 Motor Vehicles Registered •000 584 1,084 85.6 U.S. Passenger Cars Entering B r i t i s h Columbia •ODD 448 1,167 160.5 * Estimated ** 1961 not available due to change i n reporting concept Source: "Office Space Survey, 1972". This survey was conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater Vancouver i n Real Estate Trends i n Metropolitan Vancouver  1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver: 1972) p. D-10. 68 Table 3.IX Percentage Distribution of Employment i n the Louer Mainland* by Industry Group, 1951 - 1981 Percentage Actual*** Forecast Estimates Change i n Employment 1951 1961 1971 1981 2000 (Rounded) range mean 1971-1981 Agriculture 4.4 2.9 1.6 Extractive 4.3 2.8 1.4 TOTAL PRIMARY 8.7 5.7 3.0 Manufacturing 24.0 18.9 19.0 Construction 7.1 6.8 6.8 TOTAL SECONDARY 31.1 25.7 25.8 Transportation Group 11.4 11.4 11.6 Trade 19.2 19.5 19.5 Finance Group 4.2 5.1 5.5 Services**** 24.0 23.3 24.9 Public Admin-i s t r a t i o n 1.4** 9.3 9.7 TOTAL TERTIARY 60.2 68.6 71.2 1.0 (65.5) .8 (71.5) 1.8 1-2 1.5 (68.5) 19.0 .5 6.8 no change 25.8 22-26 24 no change 11.6 1.75 19.5 no change 5.5 7.4 25.9 12.1 9.9 6.5 72.4 72-77 74.5 5.5 Notes: * Census Division 4, B.C. ** Public administration grouped uith "Service" u n t i l 1961 *** 1951 and 1961 Census not s t r i c t l y comparable due to SIC revisions and introduction of the "Neu Establishment Concept." ****Community, business and personal service i n d u s t r i e s . Source: Space for Industry, G.V/.R.D. Planning Department, Dec.1970, p. 1. 69 The service sector i s expanding to accommodate the increasing regional market and B r i t i s h Columbia's resource development. Therefore, Greater Vancouver i s becoming the f i n a n c i a l and management centre of 50 Western Canada. C. Intrametropolitan Location of Business Sectors i n the G.V/.R.D. Offices Any discussion of the intrametropolitan location of various firm categories must consider the location of o f f i c e s because a l l sectors, to some extent, locate in o f f i c e s . Since the various sectors have a d i f f e r e n t t h e o r e t i c a l basis for t h e i r intrametropolitan location, an intrametropolitan location theory for o f f i c e space i s very complex. Office location i s further complicated by the i n a b i l i t y to quantify inputs and outputs of the o f f i c e production function. Output, far example, i s unatandardized for a given firm as well as i t s competitors. Moreover, Hoover and Vernon suggest that the precise measurement of costs and benefits which accrue with s p a t i a l v a r i a t i o n of the production function i s uncertain for o f f i c e s . For example, improvements i n executive work quality at a s p e c i f i c location and the increased oper-51 ating costs to locate there are immeasurable. Therefore, there i s no major intrametropolitan, o f f i c e location theory a v a i l a b l e . It i s noted, however, that i n order to overcome s p a t i a l l y con-tingent costs and benefits, o f f i c e s generally require a C.B.D. location to attain interdependence and take advantage of external economies. Firms which locate c e n t r a l l y usually require the opportunity to e a s i l y 52 collaborate on a personal basis with other organizations. Moreover, Fisher suggests that the advantages of a peripheral location, i . e . 70 lower land costs, a good working environment, etc., have l i t t l e 53 effect on the decision to locate o f f i c e s . Metropolitan Vancouver i s no exception to these general observations. Figure 3.IV shows the p r i n c i p a l o f f i c e building locations i n the G.V.R.D. Note the a x i a l arrangement along the Hastings, Kingsway and Marine Dr./Lonsdale c o r r i d o r s . This pattern evolved over the past kG years as development and zoning reinforce and s t a b i l i z e 5k each other. The location of o f f i c e s on main transportation l i n k s also enables easy s p a t i a l interaction whence personal encounters. Metropolitan Vancouver's o f f i c e space grew from 11.9 m i l l i o n square feet i n 1971 to 12.9 m i l l i o n square feet by 1972. Vancouver increased i t s o f f i c e space from 10.9 to 11.7 m i l l i o n square feet from 1971 to 1972; approximately 8 m i l l i o n square feet presently occupy the C.B.D. Most of t h i s growth occurred along Kingsway and East Hastings. Suburban o f f i c e space exclusive of Vancouver comprises 1.27 mi l l i o n square f e e t . Richmond, Burnaby, and North Vancouver c i t y ex-perienced the highest growth rates; l i t t l e growth occurred in West 55 Vancouver. Appendix II summarizes the size of p r i n c i p a l non-government buildings. Primary Industries The intrametropolitan location theory of primary industries i s s i g n i f i c a n t l y developed by von Thunen. As previously mentioned, von Thflnen f u l l y developed the rent concept to suggest that, c e t e r i s paribus, intensity of a g r i c u l t u r a l land use decreases as distance from the central market increases due to the increase of transportation costs. Game theory models further develop von Thunen's framework. However Gregor suggests that, P r i n c i p a l Office Building Locations Note the a x i a l arrangement about the Hastings, Kingsway, and Marine Dr./ Lonsdale corridors. Source: "Office Space Survey, 1972". This survey was conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater O t 4 3 Vancouver. In Real Estate Trends i n Metro- MM""" politan Vancouver 1972-1973, (Vancouver, Canada: M l l * s S t a t i s t i c a l and Survey Committee) p.C-5. 72 "Game theory s t i l l cannot completely enlighten us on the decision-making process, however, for i t operates on several assumptions that are untenable i n an actual s i t u a t i o n . The two most objectionable of these are that: (1) decisions are made sole l y on economic grounds and with a desire for optimum solutions; and (2) a l l existing information about market opportunities and technology i s uniformly available and acceptable to the decision maker."56 Game theory can, however, deal with the lo c a t i o n a l constraint of re -source a v a i l a b i l i t y . The l i m i t a t i o n of these theories i s that they best apply to agriculture; not a l l primary i n d u s t r i e s . From the above, i t i s expected that more intensive farming occurs as near as possible to the C.B.D.; commercial f i s h i n g operations locate on the waterfront where break of bulk occurs. However, primary firms such as forestry or mining do not locate within a c i t y on the basis of resource a v a i l a b i l i t y or transport cost of output. They locate i n o f f i c e s i n the central core. This study c l a s s i f i e s construc-tion firms under the primary sector. The intrametropolitan location of construction firms, however, i s probably best explained by the theory of intrametropolitan i n d u s t r i a l l o c a t i o n . Therefore, there i s no major intrametropolitan location theory applicable to primary i n -dustry i n the G.V.R.D. Figure 3.1/ shows the areas of actual a g r i c u l t u r a l land use i n the G.V.R.D. for 1970. Approximately 80% of t h i s a g r i c u l t u r a l land i s south of the Fraser River. 57 In 1966, the Lower Mainland had 256,235 acres of t o t a l farm area of which 202,096 acres are improved. Total farm area shows steady decline from 330,259 acres i n 1941 while improved land area only 58 s l i g h t l y increased. This i s due to the encroachment of other land uses onto farmland. Figure 3.1/ Greater V/ancouver Regional D i s t r i c t : Actual A g r i c u l t u r a l Land Use, 1970. • A I Agricultural N Source: "Existing Development, 1970: (Map K21-020), Planning Department, January, 1970. 0 1 Ik Although approximately 10% of t o t a l primary employment (includes construction, please see Table 3.IX) i n the Lower Mainland 59 i s presently i n agriculture, employment i s expected to decrease with technological improvements. As previously suggested, mining and forestry firms are located i n o f f i c e s of the central core (Figure 3.IV). Location of construction firms i s implied i n the proceeding discussion of manufacturing firms. Manufacturing Industries M. A. Goldberg's"^ 0 work i s the f i r s t t h e o r e t i c a l enquiry into the intraregional location of manufacturing. It i s shown that the properties of the generalized production function (GPP) help explain c i t y s i z e , whence i n d u s t r i a l l o c a t i o n . The GPP i s consistent with empirical observations for i n d u s t r i a l location, includes extensions to more than two variables and to variable e l a s t i c i t i e s of substitution, and considers the e f f e c t of scale of output on in t e r n a l economies as well as s i z e . The class of GPP's i s defined by: \l = g(f) where > 0 > ^ > O^iLo") and g i s a transformation function such that: 1/ = g(o) = o and f = a neoclassical production function with 22 inputs V = units of r e a l output per time unit. With the GPP, returns to scale and scale i t s e l f are functions of location. Optimality c r i t e r i a for inputs and location are derivable for general and s p e c i f i c functional forms. However, while each firm locates r a t i o n a l l y from i t s viewpoint, l o c a t i o n a l behaviour i s random from the aggregate point of view. This random behaviour allocates firms over the equally l i k e l y s i t e s of the subset of feasible s i t e s . 75 The empirical evidence, from which the GPP i s consistently derived, suggests a theory of intrametropolitan i n d u s t r i a l l o c a t i o n . Raymond V/ernon observes that industries which usually require central locations are found to have the following t r a i t s : 1. They have unstable output due to v o l a t i l e demand, season-a l i t y or product demand. 2. They require speed of communication and transmission of ideas amongst several, varied functions external to the firm i n order to derive the firm's output. 3. They require face-to-face contact. Whenever these industries locate outside central areas, they tend to be larger than th e i r counterparts who locate i n the C.B.D. Industries which usually locate peripherally are found to have the following c h a r a c t e r i s t i c s : 1. They are transport-oriented plants which desire tD avoid central congestion and move large quantities of inputs and outputs. 2. Their large scale production requires more space than provided in the central areas. 3. They are rapidly expanding industries who anticipate plant expansion and require cheap land. Therefore, the hypothesis that smaller plants of a given industry generally locate c e n t r a l l y while larger plants of the same industry generally locate p e r i p h e r a l l y i s sustained by Goldberg's work. De-pending on how the sample i s s t r a t i f i e d , the hypothesis that plant growth i s limited by the space constraints of the plant-size i s either supported or refuted. IMo conclusion can be drawn concerning the hypo-thesis that growing plants move i n general, and i n par t i c u l a r that they move to less dense subareas of the urban region. There are, how-ever, s u f f i c i e n t weaknesses in the data to d i s c r e d i t any estimates •4. 62 based upon i t . 76 In the following discussion, references to i n d u s t r i a l land include manufacturing (SIC 200-399); construction (404-439); trans-portation, storage and communications (514-549); and wholesale (701-729) groups. Figure 3.1/1 shows the zoning constraint which influences i n t r a -metropolitan i n d u s t r i a l location in the G.V.R.D. The supply of i n d u s t r i a l land can always be extended with zoning and i s by no means fi x e d . Approximately 20% of zoned land i s actually under i n d u s t r i a l use i n Figure 3.VII. This i s p a r t i a l l y explained by Figure 3.VIII where land under actual i n d u s t r i a l use coincides with c r i t i c a l i n f r a -structure linkages; less suitable i n d u s t r i a l zoned s i t e s to a lesser degree. Moreover, about 50% of the i n d u s t r i a l survey d i s t r i c t s have d i f f i c u l t foundation conditions. Such conditions are unsuitable even for l i g h t industry. Figure 3.IX shows those areas which can be re-claimed for i n d u s t r i a l use. Table 3.X shows the number of acres used by various sectors i n Metropolitan Vancouver. Manufacturing by far occupies the largest portion of land: 5,405.8 acres from a t o t a l i n d u s t r i a l acreage of 7,308 acres. Table 3.X. Use of Indus t r i a l Land - Metro Vancouver 1966 Manufacturing 5,405.8 acres Construction 161.3 Wholesaling 778.9 Transportation, communication and storage 1- 962.0 Total Industrial Acreage 7,308.0 Source: Space for Industry, G.V.R.D. Planning Department, 1971, p. 13. 77 Therefore, Figure'3.V/IIpredominantly' shows manufacturing locations. Table 3.XI and Figure 3,U_ suggest that most of the i n d u s t r i a l acreage i s in the municipalities of V/ancouver and Burnaby. Of the approx-imately 11,500 acres of developed i n d u s t r i a l land i n the G.V/.R.D. i n 1969, V/ancouver, Burnaby, Richmond and Surrey each contain approx-imately 2000 acres. Manufacturing firms occupy approximately 35% of the t o t a l i n d u s t r i a l acreage i n V/ancouver and Burnaby. Table 3.XII further suggests that smaller manufacturing firms occupy central locations while larger manufacturing firms locate peripherally. Table 3.XI. Acreage of Industrial Development^" - 1966 Area Developed Sites No. of Firms Acres Occupied V/ancouver 1,396 1,897 1,791 Burnaby 353 462 1,594 New Westminster 122 159 395 Coquitlam 16 20 530 Port Moody 15 15 647 North V/ancouver City 68 104 185 Delta 57 65 245 Richmond 176 215 787 Surrey 121 137 450 Total Metro Area 2,324 3,074 6,624 Includes Manufacturing (SIC 200-399); Construction (404-439); Transportation, Storage and Communications (514-549); and Wholesale (701-729) groups. Source: Space for Industry, G.V/.R.D. Planning Department, 1971, p. 8. 78 Figure 3.VI Greater Vancouver Regional D i s t r i c t : Zoned Industrial Areas, 1970. Figure 3.VII Greater Vancouver Regional District: Actual Industrial Land Use, 1970. 80 Figure 3.V/III Greater V/ancouver Regional D i s t r i c t : Industrial Location Determinants, 1970. H I M I M I D e e p W a t e r cWncb i I Difficult Foundation Condons l~ I IndusW Survey Districts 1 I Steep Slope I///I InoWnft/ Survey DtstricTs uitk Foundation DiSS-iculties Source: Space for Industry, G.V.R.D. Planning 0 i 2 Department, 1971, pp. 5-6. MiTeS l" - " 81 Figure 3.IX Greater Vancouver Regional D i s t r i c t : Industrial Areas of Potential Use, 1970. / cm Prime Land: Major Areas: Vacant, suitable and available Areas Requiring S a n d f i l l I n d u s t r i a l Parks Expansion Areas: Potential Reclamation of Tidal Lands Reclamation of Peat Lands | | Other Expansion Source: Space for Industry, G.V.R.D. Planning Department, 1971, pp. 21-22. 82 Table 3.XII Average Density of Ind u s t r i a l Development and Average Site Size of Industrial Firms, 1966. Municipality Density (Firms/Acres) Average Site Size (Acres) Vancouver .78 1.3 North Vancouver City .37 2.7 New Westminster .31 3.2 Surrey .27 3.7 Delta .23 4.3 Burnaby .22 4.5 Richmond .22 4.5 Coquitlam .04 22.7 Port Moody .02 43.2 Source: Space for Industry, G.V.R.D. Planning Department, 1971, p. 45. Re t a i l Trade An intrametropolitan r e t a i l location theory i s outlined by the central place theory of the previous chapter. Figure 3.X shows the actual commercial land use i n the G.V.R.D. for 1970. Commercial development includes a l l r e t a i l as well as some f i n a n c i a l and administrative service firms. Much of t h i s commercial land i s i n the form of s t r i p development along the Hastings and Broadway/Kingsway corr i d o r s . Appendix II presents the amount of commercial f l o o r space of various commercial centres i n the G.V.R.D. for 1970. Approximately one-third of Metropolitan Vancouver's com-mercial f l o o r space i s i n Vancouver. Figure 3.XI shows existing commercial areas and commercial zoning i n Vancouver with a C h r i s t a l l e r i a n marketing hierarchy of central Figure 3.X Greater Vancouver Regional D i s t r i c t : Actual Commercia Land Use, 1970. • c N Source: "Existing Development, 1970" (Map K21-020), Planning Department, G.V.R.D., January, 1970. o i l 84 Figure 3.XI Vancouver: Existing Commercial Areas and Commercial Zoning with a C h r i s t a l l e r i a n Marketing Hierarchy of Central Places, 1972. Source: Real Estate Trends in Metropolitan Vancouver  1972-1973 (Vancouver: S t a t i s t i c a l and Survey Committee, 1973) Plate 1, (Appendix) places. Nate the very s t r i k i n g hexagonal market array of d i s t r i c t functions about the regional function of Qakridge. The hexagonal market areas are imperfectly formed due to zoning which i s mainly constrained by irregular geography, i . e . waterways, h i l l s , etc., and a non-uniform population d i s t r i b u t i o n . No well developed r e t a i l centre, for example, exists on the University Endowment Lands due to the r e l a t i v e l y low density and transient population. A l t e r n a t i v e l y , •akridge would be more geographically central to i t s d i s t r i c t functions i f Queen Elizabeth Park did not e x i s t . Therefore, the resultant hexagonal pattern D f r e t a i l functions i n Vancouver i s somewhat ex-plained by central place theory. Wholesale Trade and Storage An intrametropolitan location theory for wholesale trade remains quite undeveloped. This i s because wholesalers perform r e l a -t i v e l y high order s p a t i a l functions with respect to inputs and outputs. It consists of business transactions which do not necessarily involve ultimate customers and can occur in an abstract fashion. These trans-actions can also involve external influences to enable exogenic c h a n g e . V a n c e u t h e r e f o r e suggests that, "No longer...(are)...neat assumptions as to how far and i n what scale trade...flow...(is)...possible. Even the t o t a l size of trade...(cannot)...be pre-determined, because no v a l i d bounding l i n e , short of the t o t a l world,...(is)...self-evident. Without the determinate q u a l i t i e s of r e t a i l trade, wholesaling... (is). . . n o t amenable to analysis under any theory founded upon endogenic change."64 Consequently, tools of analysis such as scale of trade are unusable to develop a location theory. Analysis of wholesalers, whether th e o r e t i c a l or empirical, i s further plagued by the problem of d e f i n i t i o n because several firms claim to s e l l at wholesale pri c e s . It i s also d i f f i c u l t 86 to unravel the present integration of manufacturing, wholesaling, and r e t a i l i n g activities."'"' In the absence of a rigorous theory, the taxonomy of the whole-sale function i n urban areas has been observed. Vance and R a t c l i f f e suggest that the location of the old warehouse d i s t r i c t s adjacent to the central r e t a i l d i s t r i c t depended upon the s p e c i f i c mode of the o r i g i n a l transport medium."'"' Vance further states that, "...Great importance i s attached to the d i s t i n c t i o n between customer access and supply of goods access. If supply of goods dominates the location decision, then technological changes w i l l have greatest eff e c t on the location decision, and we may f i n d during the course of the c i t y ' s history several rather dif f e r e n t s i t e s that have been used by a single wholesaling firm, with one toward the periphery standing as the present home. In contrast, when customer access dominates, l o c a t i o n a l s h i f t w i l l be less common, for the simple reason that customers and t h e i r transport have changed less i n the course of urban history than has the handling of goods." 6 7 Consequently, the following wholeaale d i s t r i c t s , based on some combination of supply of goods and customer access, evolve: 1. The Produce D i s t r i c t : Vegetable dealers locate i n t h i s d i s t r i c t which i s adjacent to the shopping d i s t r i c t . This enables ready customer access. This d i s t r i c t i s disappearing from c i t i e s due to the encroachment of o f f i c e s which r e s t r i c t access for both producers and consumers. 2. The Product Comparison D i s t r i c t : This d i s t r i c t often occurs adjacent to the C.B.D. where out of town buyers stay in hotels. Thus, buyers can readily comparison shop i n th i s d i s t r i c t . Clothing and furniture wholesalers cluster here as a sales strategy. 3. W i l l - C a l l Delivery D i s t r i c t : Wholesalers located here deal with items that possess timeliness. Phonograph records, appliances and auto parts are examples of such items. This d i s t r i c t i s located i n the C.B.D. such that i t has good access to the in t e r n a l metropolitan highway system. Retailers, who generally possess a minor stock of such items, can readily supplement t h e i r inventory as the need a r i s e s . h. Manufacturing Stocks D i s t r i c t : These wholesalers require ready customer access. Paper dealers, for example, s e l l a 87 standard item to d i v e r s i f i e d printing manufacturers. Due to the heavy paper demand from commercial and o f f i c e a c t i v i t i e s , paper wholesalers locate close to printers who i n turn locate near the c i t y core. T e x t i l e wholesalers to the garment industry are a further example. Characterized by time pressure on production, v o l a t i l e demand, several small manufacturers, and a shortage of working c a p i t a l , garment manufacturers and th e i r wholesalers tend to locate c e n t r a l l y . 5. The Office Wholesaling D i s t r i c t : Various wholesalers require an o f f i c e d i s t r i c t location i n order to deal in the t i t l e to goods rather than th e i r physical handling. These agents, brokers, etc., require face-to-face dealings, often with respect to market price.° 8 The above wholesale d i s t r i c t s are intimately associated with the C.B.D. However, Gottman notes the tendency for some wholesalers to require large warehouses with good a c c e s s i b i l i t y , p a r t i c u l a r l y f o r trucks. Since these requirements are not e a s i l y found with the ex-pensive and congested land of the urban core, peripheral s i t e s are 69 chosen. Therefore, the wholesale function i s d i s t r i b u t e d both c e n t r a l l y and peripherally over urban areas. Since Metropolitan Vancouver i s a break of bulkpoint between land and sea transportation, i t serves as an i d e a l entrepftt for wholesale a c t i v i t y . Figure 3.V includes the location of wholesale trade and storage firms which occupy approximately 780 acres in Metropolitan Vancouver. Prime wholesale d i s t r i c t s are found along the Fairview Slope from Main to Granville Streets and the west end of False Creek to -Burrard Street. These areas are in close proximity to the C.B.D. Development of warehouse f a c i l i t i e s has s i g n i f i c a n t l y increased over the past three years. Consequently, the establishing areas of Clark Drive, Powell Street, Boundary Road, Lougheed and S.E. Marine Drive are also well established, given th e i r increased a c c e s s i b i l i t y to other 70 sectors of Metropolitan Vancouver. 88 Infrastructure The intrametropolitan location of infrastructure a c t i v i t i e s appears to be based upon central place theory, given geographical constraints and population densities. This excludes the location of head o f f i c e s which, of course, are founded upon o f f i c e location considerations. It i s assumed that infrastructure firms further choose a location v i a cost benefit analysis. Cost benefit analysis can only r e a l i s t i c a l l y be used by non-office, private sector firms where optimization against measurable c r i t e r i a such as p r o f i t s i s f e a s i b l e . Taxicab or moving and storage companies, for example, would f i n d cost benefit analysis useful i n the choice of a l o c a t i o n . Since public works projects promote the e f f i c i e n c y of private economic and s o c i a l a c t i v i t i e s , there i s a problem to allocate scarce funds on the basis of sensible and consistent c r i t e r i a of project worth. Economists generally subscribe to the t h e o r e t i c a l soundness of cost benefit analysis as an appropriate t o o l for the location decision of public works. In r e a l i t y , the method i s costly to implement and yields questionable r e s u l t s . Evaluation of project worth i s exceedingly d i f f i c u l t , partly because i t i s d i f f i c u l t to foresee the consequences of such projects and partly because i t i s hard to appraise t h e i r s o c i a l values. Cost benefit analysis i s e s s e n t i a l l y a variant of the income approach to value. R e a l i s t i c a l l y , the assets, and their concommitant location, must be considered for decision making purposes. In other words, supply with respect to demand rather than demand per se for urban infrastructure in the public sector must be considered in order to decide how to upgrade 71 the r e a l value of a given inventory. Therefore, the location of public infrastructure firms via cost benefit analysis i s inappropriate. 89 The location of public infrastructure firms i s also more r e s t r i c t e d than central place theory suggests. Manners states that, "...There i s a...labyrinth of influences moulding the... (location)...patterns of energy...(i.e. e l e c t r i c power, gas and water u t i l i t i e s ) . . . T h e s e forces — economic and s o c i a l , p o l i t i c a l and h i s t o r i c a l , technical and, at times fortuitous — are a l l intimately related to each other..."72 Therefore, "Any empirical survey of the various factors which are involved i n the location of secondary energy production quickly reveals the complexity and variety of lo c a t i o n a l choice, and underlines the i n d i v i d u a l i t y of each case."74 The location of infrastructure firms i n the G.V/.R.D. i s shown in Figure 3.X as well as Figures 3.IV/, 3\J and 3.X. In Figure 3.XII, note the diffuse pattern of c i v i c and i n s t i t u t i o n a l land uses which serve most points in the G.V/.R.D. Financial and Administrative Services No single theory comprises the intrametropolitan location of f i n a n c i a l and administrative services. Financial services usually locate on the basis of o f f i c e location considerations. Theatres, for example, u t i l i z e central place theory. Some government services u t i l i z e public infrastructure considerations i n th e i r location decision. Therefore, a diverse s p a t i a l arrangement of Metropolitan V/ancouver's f i n a n c i a l and administrative services ensues i n Figures 3.IV/, 3.X and 3.XII. Figure 3.XII Greater Vancouver Regional D i s t r i c t : Actual C i v i c and I n s t i t u t i o n a l Land Use, 1970. / Civic an<) Institutional N Source: "Existing Development, 1970" (Map K21-020), Planning Department, G.V.R.D., January, 1970. 91 D. Summary This chapter presents an h i s t o r i c a l , economic and business sector synopsis of metropolitan Vancouver. The synopsis outlines some topics which are relevant to the present location/relocation, questionnaire study of firms located i n the G.V.R.D. This s p a t i a l context of the questionnaire study hopefully enables interpretation of the questionnaire data. The following chapter s p e c i f i c a l l y considers the questionnaire study. In p a r t i c u l a r , the present study i s con-sidered i n the context of the HPS study. Discussion of the question-naire technique and the s p e c i f i c variables used i n the present study are a prelude to the s t a t i s t i c a l analysis of the questionnaire data. 92 References Siemens, A. H., "The Process of Settlement in the Louer Fraser Valley - in i t s P r o v i n c i a l Context" i n Louer Fraser Valley: Evolution  of a Cul t u r a l Landscape, Siemens, A.H., (ed.), (Vancouver, Canada: Tantalus Research Limited, 1968) pp. 45-47. 2 I b i d . , p. 47. ^Harduick, W.G., "Vancouver: the Emergence of a 'Core-Ring' Urban Pattern" in Geographical Approaches to Canadian Problems, Gentlicore, R. L. (ed.), (Scarborough, Ont.: Prentice-Hall, Inc., 1971) pp. 112. Ibid., p. 114. 5 Loc. c i t . *~*Loc. c i t . 7 Loc. c i t . 6 I b i d . , pp. 114, 115. 9 I b i d . , p. 117. 1 DThe e d i t o r ( s ) , "Greater Vancouver, B r i t i s h Columbia, Canada" (Vancouver and Louer Mainland I n d u s t r i a l Development Commission, Vancouver, B.C., 1971) p. 1. "^McGovern, P.D., "Industrial Development i n the Vancouver Area", Economic Geography, 1961, p. 191. 12 Stager, J . K. and Wallis, J . H., "The Climatic Factor -Variations on a Mean" in Louer Fraser Valley: Evolution of a Cul t u r a l  Landscape, Siemens, A. H., (ed.), (Vancouver, Canada:1 Tantalus Research Limited, 1968) prs!9Q. 1 3 I b i d . , p. 93. l t f I b i d . , p. 96. 1 5 I b i d . , pp. 96-97. 93 1 6 I b i d . , p. 98. 17 Winter, G. R., " A g r i c u l t u r a l Development in the Louer Fraser l/alley" i n Louer Fraser V/alley: Evolution of a Cultural Landscape, Siemens, A. H., (ed.), (V/ancouver, Canada: Tantalus Research Limited, 1968) pp. 102-103. 18 Stager, J . K. and Wallis, J . H., Op. c i t . , p. 98. 19 Winter, G.R., Op. c i t . , p. 112. 2 DIbjLd., p. H I . 21 Griggs, N.J.F., Urban Growth and Transportation Implications  in Port Development: a case study, V/ancouver, B.C. (unpublished M.A. Thesis, U.B.C.:1967) pp. 203-204. 2 2 I b i d . , p. 207. 2 3 I b i d . , pp. 199, 207-208. 24 "The Livable Region Project" under the auspices of the G.V/.R.D. in Real Estate Trends in Metropolitan V/ancouver 1972-1973 ( S t a t i s t i c a l and Survey Committee, V/ancouver: 1972) p. 1. 2 5 G r i g g s , N.J.F., Op. c i t . , p. 201. 26 Todd, E.C.E., The Federal Expropriation Act, A Commentary (V/ancouver, Canada: The Carsuell Co. Ltd., 1970) p. 95. 2 7 I b i d . , p. 99. 28 Ring, A.A., The valuation of Real Estate, (Engleuood C l i f f s , Neu Jersey: Prentice-Hall, Inc., 1970) pp. 29-30. 29 Land Registry Act. R.S. 1948, C.171, s . l . : Sections 53 and 149. 3^Gibbs v. Messer in The Lau of Real Property, Davis, I., (ed.), (V/ancouver, Canada: Best-Printer Co. Ltd., 1972) p. 104. 3 1Land Registry Act. R.S. 1948, C.171, s . l . : Sections 221 to 233 i n c l u s i v e . 32 Davis, I., "Notes on the Lau of Real Property", (Unpublished Manuscript) pp. 29-30. 94 33 Johnson v. Anderson i n The Laui of Real Property, Davis, I., (ed.), (V/ancouver, Canada: Best-Printer Co. Ltd., 1972) p. 79. 34 Griggs, N.J.F., Dp. c i t . , p. 195. 35, . . Loc. c i t . 3 6 I b i d . 1 p. 199. 3 7 I b i d . , p. 195. 3 8 I b i d . , p. 199. 39. . . Loc. c i t . 40 "Population Trends i n the Louer Mainland 1921-1986" (Neu Westminster, B.C." Louer Mainland Regional Planning Board, 1968) Summary Report A p r i l 1968, pp. 1-10, also,"Office Space Survey, 1972". This survey uas conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater V/ancouver i n Real Estate Trends i n  Metropolitan V/ancouver 1972-1973 ( S t a t i s t i c a l and Survey Committee, V/ancouver: 1972) p. D-2. 41 Space for Industry, G.V/.R.D. Planning Department, 1971, p. 2. 42 Duncan, W., "The Port of V/ancouver" i n "Office Space Survey, 1972", Op. c i t . , p. C-19. 43. . . Loc. c i t . 44 Canada Year Book, 1972, D.B.S., Cat. No. CS-11-202/1972, p. 902. 45 Duncan, W., Op. c i t . , p. C-19. 46 Harduick, W.G., Op. c i t . , p. 117. 47 Smith, W.F., "Principles of Urban Development", (Unpublished manuscript, 1972), p. 107. 48 Space for Industry, Op. c i t . , p. 1. 49 Ibid., p. 2. 50. . . Loc. c i t . 95 51 Hoover, E.M. and Vernon, R., Anatomy of a Metropolis (Garden City, New York: Doubleday and Company, Inc., 1959) p. 97. 52 Vernon, R.E., Metropolis 1985 (Neu York: Doubleday Anchor, 1960) p. 101-102, 106. 53 Fisher, R.M., The Boom in Office Buildings (Washington, D.C: Urban Land Institute Technical B u l l e t i n No. 58, 1967). 54 Graham, W.E., "Vancouver's Suburban Commercial Structure," in Real Estate Trends i n Metropolitan Vancouver 1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver, 1972) p. 13. 5 5°0ffice Space Survey, 1972", Op. c i t . , pp. C-15 to C-17. "'"'Gregor, H., Geography of Agriculture (Engleuood C l i f f s , N.J.: Prentice-Hall, Inc., 1970) p. 70. 57 Census Division S, B.C. 58 Census of Canada, Dominion Bureau of S t a t i s t i c s , 1941, 1966. 59 Space for Industry, Op. c i t . , p. 1. "'"^Goldberg, M.A., Intrametropolitan Ind u s t r i a l Location: Plant  Size and the Theory of Production (Berkeley,California: University of C a l i f o r n i a , 1969). "'"''Goldberg, M.A., "Intrametropolitan Ind u s t r i a l Location and the Theory of Production" (unpublished a r t i c l e , U.B.C, 1971) pp. 1-20. 62 Goldberg, M.A., Intrametropolitan Ind u s t r i a l Location: Plant  Size and the Theory of Production (Berkeley,California: University of C a l i f o r n i a , 1969) pp. 220-21. ^Vancev J . E., The Merchant's World: The Geography of Whole-saling (Engleuood C l i f f s , N.J.: Prentice-Hall, Inc., 1970) p. 6. 64. . . Loc. c i t . "'"'ibid., pp. 6, 7. "'"'Ratcliffe, R. U., Internal Arrangement of Land Uses (Chicago: The University of Chicago Press, 1959) p. 415. and Vance, J.E., Op. c i t . , p. 130. 96 67 Vance, J.E., Dp. c i t . , p. 133. G 8 I b i d . , pp. 131-133. 69 Gottman, J., Megalopolis: The Urbanized Seaboard of the  United States (Neu York: Twentieth Century Fund, 1961) p. 51S. 70 "Office Space Survey, 1972:, Op. c i t . , p. C-21. 71 The author wishes to express his sincere thanks to Professor Id. F. Smith for the idea of using r e a l stock variables to locate public infrastructure firms. 72 Manners, G., The Geography of Energy (London: Hutchinson and Co. Ltd., 1964) p. 25. 73 Primary energy i s used to produce an alternative and more convenient, secondary form of energy. Transport costs only influence the t o t a l cost but not the location of a primary energy source. With secondary energy sources, which are more pertinent to the i n t r a -metropolitan context, transport costs influence the t o t a l cost of the energy as well as the location of the conversion from a primary into a secondary energy form. 74 Manners, G., Op. c i t . , p. 92. 97 CHAPTER IV THE PRESENT QUESTIONNAIRE STUDY A. Introduction The purpose of t h i s chapter i s to consider the location questionnaire survey i n the context of the IIPS study. Discussion of the questionnaire technique and the s p e c i f i c variables used i n the present study are a prelude to the s t a t i s t i c a l analysis of the questionnaire data. In p a r t i c u l a r , the f e a s i b i l i t y to use the questionnaire variables i n both an inter-regional and intrametropolitan location study i s established. B. The I n t e r - I n s t i t u t i o n a l Policy Simulator (HPS) Study P e r l o f f notes that urban planning has evolved into a very com-plex practice from a f i e l d e s s e n t i a l l y concerned with aesthetics. Planning now encompasses: engineering f i e l d s to enable e f f i c i e n t oper-ation of urban components; land use control within the scheme of a r a t i o n a l land use pattern; and socio-economic, p o l i t i c a l and physical considerations which enable proper development and operation of an urban area. 1 Planning further comprises land a c q u i s i t i o n programs, ecological controls and s p e c i a l research programs. The HPS project, which i s a large-scale, s p e c i a l research study of the G.V.R.D., demonstrates the complexity to which urban planning has evolved. The University of B r i t i s h Columbia, the City of 98 Vancouver, the Greater Vancouver Regional D i s t r i c t , the Department of Municipal A f f a i r s , the Province of B r i t i s h Columbia, and the Ministry of State for Urban A f f a i r s are j o i n t l y engaged i n t h i s program. There are three goals for t h i s program. The f i r s t goal i s to construct 2 a simulation model building process. Thus, a more refined model evolves due to continual improvement and updating. The second goal i s to attai n i n t e r - i n s t i t u t i o n a l cooperation. This provides the p r a c t i c a l experience of the government le v e l s required i n the application of recent research developments to the Region's p r a c t i c a l needs and problems. HPS t h i r d goal i s to create a model which considers r e a l world problems of interest to both private and public decision makers. These sectors require t o t a l a c c e s s i b i l i t y to a comprehendable model which i s economical to operate. Without the general use of the model from both private and public sectors, modifications with respect to r e a l i t y are undesirably precluded. 3 HPS i s designed for general use by the public; university researchers, a l l l e v e l s of government and private individuals w i l l have access to the model. None of the output of the IPPS model i s con-f i d e n t i a l . Only profit-making corporations w i l l be charged a users fee. This fee covers development and running costs, subsidizes the use by ind i v i d u a l c i t i z e n s and maintains a service s t a f f to implement c l i e n t s ' requests and explain the r e s u l t s . In order to study something as broad and complex as the G.V.R.D., the HPS project i s organized into nine modelling sub-groups and a data c o l l e c t i o n and a data management group. The nine modelling sub-groups consist of f i v e groups c r i t i c a l to the HPS modelling a c t i v i t y : population, economics, transportation, land use, and l o c a l government. 99 Four other groups are also being developed: health systems, p o l l u t i o n , 5 human ecology, and f a c i l i t i e s cost. The economics group i s responsible for the Vancouver Metro-politan Input-Output Study (VMIS) which w i l l enable present and future analysis of the structure of the Vancouver Metropolitan Area economy. Figure 4.1 shows a production d i s t r i b u t i o n system of the six industry subpopulations i n the present study as well as the house-hold sector. The VMIS determines the sales and purchase relationships of the production d i s t r i b u t i o n system i n order to construct a 27 sector input-output matrix of the Metropolitan Vancouver economy. (Note that more than one sector can comprise a given industry subpopulation.) From t h i s information the interdependence of the area's industries and thei r relationships with households and governments may be established. Figure 4.1. A Production D i s t r i b u t i o n System of the G.V.R.D. Goods and SPTVIHPS I r Infrastructure 1 F i n . and Admin. Services Orders Population Residents Bl-foreign) Orders R e t a i l Orders Wholesa le , r C J ~ f — t . {Goods Orders Manufacturing and Services Primary If 100 6 Input-output analysis overcomes the disadvantages of other methods which measure economic base because i t acknowledges that an urban economy i s a matrix of firms trading with each other as well as with the consuming public and the outside world. Firms which supply to l o c a l export firms are proportionately considered as export firms because the number of export jobs increases i n several i n t e r r e l a t e d industries whenever the export demand of one firm increases. The increments of these industries are i n di f f e r e n t proportions; the ef f e c t upon the community i s di f f e r e n t i f increased export sales occur to Firm X rather than Firm Y. Therefore, the detailed consequences of export expansion or contraction i n various firms of a region's economic base, help determine appropriate urban economic p o l i c i e s . 1 0 In p a r t i c u l a r , the location survey questionnaire was to be used in conjunction with the Input-Output questionnaire. The location survey questionnaire measures the l e v e l of importance of nineteen factors i n a firm's actual decision to locate i n the G.V.R.D., as well as a firm's hypothetical decision to relocate outside the G.V.R.D. The Input-Output questionnaire requests precise revenue/sales and expenditure by s p a t i a l sector i n order to construct an input-output matrix. The SIC number, sector, number of employees, and street address are known for both questionnaires. Thus, wide scope for s t a t i s t i c a l analysis i s possible with both questionnaires. Meagre response was unfortunately received for the Input-Output questionnaire. Presumably, firms were reluctant to divulge extremely co n f i d e n t i a l information for the public good. Thus, the location survey questionnaire i s presently of limited u t i l i t y to the economics group. 1D1 The land use group, however, w i l l f i n d the location survey questionnaire r e s u l t s u s e f u l . This group i s developing models to allocate economic and r e s i d e n t i a l a c t i v i t i e s across the Region. Emphasis i s upon the development of rigorous housing models to assess the impact of a l l l e v e l s of government p o l i c i e s on the supply and demand for regional housing. However, the s t a t i s t i c a l analysis and regression models of the present location survey questionnaire study, provide an empirical data base for the land use group i n t h e i r develop-ment of models which allocate economic a c t i v i t i e s across the Region. C. Questionnaire Technique The empirical data base for t h i s thesis consists of 300 returns of the location survey questionnaire l i k e that of Eigure 4.II. 3800 firms representative of the Region's economic base were contacted such that the largest, i . e . most employees, firm was contacted together with a random sample of remaining firms i n each industry sector. Thus, a larger portion of the economic base in terms of labour inputs, as well as a cross section of large and small firms, was probably surveyed than i f the sampling procedure was t o t a l l y random. By February 1973, only 300 usable responses to the location survey were received. Approximately 20 responses were unusable due to i n s u f f i c i e n t information with respect to answering the questionnaire, sector number or l o c a t i o n . This represents a t o t a l usable response rate of 7.9% which i s quite poor. Table 4.1 shows the sector sub-populations to be analyzed within the scope of t h i s t h e s i s . Figure 4.II VANCOUVER BOARD OF TRADE 1177 West Hastings Street, Vancouver 1, B.C. 102 THE UNIVERSITY OF BRITISH COLUMBIA VANCOUVER 8, CANADA FACULTY OF COMMERCE AND BUSINESS ADMINISTRATION L O C A T I O N S U R V E Y C O N F I D E N T I A L 1. For each of the following factors would you please indicate the level of importance in your decision to locate your business in the Vancouver Region. 1. unimportant 3. important 2. fairly important 4. absolutely essential Place 'X ' under appropriate column. F A C T O R S 1. Nearness to markets 2. General labour supply 3. Skilled labour supply 4. Employee wage scales 5. Local property and business taxes 6. Truck transportation 7. Rail transportation 8. Water transportation 9. Air transportation 10. Land prices or lease rates 11. Construction costs 12. Local government attitude to industry 13. Cost of utilities 14. Availability of public transportation for employees 15. Availability of amenities in region 16. Availability of housing for employees 17. Availability of large tracts of land 18. Absence of traffic congestion 19. High quality environment Other (please specify) VANCOUVER METROPOLITAN INPUT-OUTPUT STUDY VANCOUVER BOARD OF TRADE 1177 West Hastings Street, Vancouver 1, B.C. 103 THE UNIVERSITY OF BRITISH COLUMBIA V A N C O U V E R 8, C A N A D A FACULTY OF COMMERCE AND BUSINESS ADMINISTRATION L O C A T I O N S U R V E Y C O N F I D E N T I A L 2. If you were to move from the Vancouver Region, would you please indicate the level of importance of the following factors in your decision to relocate elsewhere. 1. unimportant 2. fairly important 3. important 4. absolutely essential Place 'X ' under appropriate column. F A C T O R S 1.. Nearness to markets 2. General labour supply 3. Skilled labour supply 4. Employee wage scales 5. Local property and business taxes 6. Truck Transportation 7. Rail Transportation S . Water Transportation 9. Air Transportation 10. Land prices or lease rates 11. Construction Costs 12. Local government attitude to industry 13. Cost of utilities 14. Availability of public transportation for employees 15. Availability of housing for employees 16. Availability of amenities in region 17. Availability of large tracts of land 18. Absence of traffic congestion 19. High quality environment Other (please specify) VANCOUVER METROPOLITAN INPUT-OUTPUT STUDY 104 Table 4.1 Subpopulations Analyzed Subpopulation Inclusive Sectors Number of Cases 1. Primary Industries 1.1 - 4.3 14 2. Manufacturing Industries 5.1 - 13.3 85 3. Re t a i l Trade Industry 14.1 28 4. Wholesale, Trade and Storage 15.1 30 5. Infrastructure Industries 16.1 - 17.3 12 6. Financial and Administrative Services 18.1 - 27.1 131 7. A l l Industry Sectors 1.1 - 27.1 300 Inferences about the relocation and intrametropolitan location of some subpopulations are constrained by the limited number of cases for these subpopulations. A detailed description of the inclusive sectors appears i n Appendix I. The usable response rate i s further constrained by missing values. Although a feu respondents did not reveal the number of employees or attribute importance to a pa r t i c u l a r factor, several f a i l e d to answer either questions 1 or 2 of the location survey question-naire. 15 f a i l e d to answer question 1; 83 f a i l e d to answer question 2. Thus complete responses, i . e . answers to both questions 1 and 2, were only received from 202 firms or 67.3 per cent of the t o t a l number of firms included i n t h i s survey. Given the simil a r format on both sides of the questionnaire i n Figure 4.II and the larger number of n u l l responses to question 2, i t appears that several respondents did not r e a l i z e that there i s a question 2. The following suggestions might have improved the quality, r e l i a b i l i t y and completeness of the questionnaire returns, given the 105 poor response rate of the mailed survey. 1. A simple notice such as, "There are tuo di f f e r e n t questions, please answer both sides of t h i s survey" printed on both sides of the questionnaire might have caused more complete responses. 2. The location survey questionnaire should have been mailed separately from the input-output questionnaire. Although t h i s e n t a i l s greater expense, the low response to the input-output questionnaire would not impair responsiveness to the location survey questionnaire. 3. Although a personally administered questionnaire i s far more time consuming than mailed questionnaires, the quality, r e l i a b i l i t y and completeness of the questionnaires are more controlled via personal rather than written contact with prospective respondents. For example, the researcher could administer the questionnaire only to people re-sponsible for determining the firm's present l o c a t i o n . Personal factors, although of a q u a l i t a t i v e nature, could be i d e n t i f i e d under the variable "Other (please s p e c i f y ) " . The v a r i a b i l i t y and magnitude of the personal factors would set a subjective constraint on data i n t e r -pretation. I f the same personal factor occurs on several questionnaires, t h i s factor would appear i n subsequent questionnaire studies. A personal interview also enables elaboration on which aspects of a pa r t i c u l a r factor, i . e . high quality environment, are important, as well as c l a r -i f i c a t i o n of any misunderstandings about the questionnaire. A major disadvantage of both personal and mailed questionnaires i s that there i s always some uncertainty as to whether scares are true or merely represent some degree of perceptional bias. There are some lim i t a t i o n s to the present questionnaire which could be r e c t i f i e d to obtain better data. 1. This study i s severely lim i t e d because i t i s unknown when the decision was made by firms to locate i n the G.V.R.D. Tables 3.1, 3.V, and 3.VI however, reveal that the G.V.R.D. i s a growing region. This i s important because, as Goldberg suggests, intrametropolitan location i s best studied i n , "...an area which has been the scene of recent location decisions. Otherwise, what we w i l l observe i s the skeleton of decisions made i n years past for reasons generally i r r e l e v a n t today."H There should be a question which determines when the firm established operations i n the G.V.R.D. The answer would provide a r e l i a b i l i t y index to question 1. Indeed, i t i s doubtful whether a 30 year old firm could honestly answer question 1 and even i f i t could, the reasons for i n i t i a l l y locating are not necessarily the reasons for maintaining the same lo c a t i o n . There should also be a sequel to question 1 which reads: "For each of the following factors would you please indicate the l e v e l of importance i n your decision to presently remain located in the Vancouver Region." S i g n i f i c a n t differences between t h i s and question 1 would reveal the degree of irrelevancy of previous location decisions to those of today. It could also be determined after how much time, i . e . 7 years, irrelevency between former and present decisions becomes s i g n i f i c a n t . Thus, only recently, i . e . 7 years or l e s s , say, located firms would be analyzed. 2. A question should be included which asks whether respondents actually intend to move. The hypothesis that older firms are more d i s s a t i s f i e d with t h e i r present location than newer firms could then be tested. Conditional to firms answering "yes" to t h i s question, they should be asked the municipality, province or country to which they plan to move. In t h i s regard, question 2 should be re-phrased to read, " I f you mere to move within the Vancouver Region, would you please indicate the l e v e l of importance of the following factors i n your decision to relocate." Thus, intrametropolitan movement trends by size classes and industry subpopulation could aid the land use group i n t h e i r development of models which allocate economic a c t i v i t i e s across the Region. 3. Question 1 asks respondents to consider the importance of nineteen location factors i n t h e i r decision to locate i n the Vancouver Region. A l l of these factors have potential to s p a t i a l l y vary i n an intrametropolitan context. Question 1 i s interregional i n nature because the VMIS considers the regional economy as a point i n space. However, intrametropolitan analysis of the location survey questionnaire i s possible because the precise location for most firms i s known. Thus, s p a t i a l analysis of the v a r i a t i o n of these factors for a given subpopulation within the Region i s f e a s i b l e . This limited approach to empirically assess intrametropolitan location can be improved i f a supplement to question 1 states, "For each of the following factors would you please indicate the l e v e l of importance in your decision to locate your business i n the p a r t i c u l a r municipality i n the Vancouver Region." Thus, the importance of the location factors at the regional and intrametropolitan levels could be f u l l y established and compared. k. More precise d e f i n i t i o n of the factors i s required i n future studies. For example, i s the factor "Truck transportation" used in the context of a v a i l a b i l i t y of, cost of, or both? Is the " A v a i l a b i l i t y of large t r a c t s of land" required for a large plant, onsite expansion, or both? From the above, i t becomes apparent that the quality, r e l i a b i l i t y and completeness of the location questionnaire survey i s quite limited for an intrametropolitan location study of the G.V/.R.D. Only through the continual "de-bugging" of t h i s and subsequent questionnaire studies can the questionnaire's u t i l i t y as an empirical data base be improved. D. An Overview of the Location Survey Questionnaire Factors The following i s an overview of the location survey question-naire f a c t o r s . Several of these factors appear suited to a regional rather than intrametropolitan location study because they usually display the most va r i a t i o n at the regional l e v e l . Goldberg states, "It should be clear that regions from a l o c a t i o n a l viewpoint tend to be quite homogeneous from within. Therefore,...the variables which can be reasonably , 2 u t i l i z e d are few i n number and d i f f i c u l t to measure." As suggested above, future surveys could measure the difference which these variables have at the regional and intrametropolitan l e v e l s . Thus, i t i s unknown whether or not a pa r t i c u l a r regional factor i n -fluences only the regional portion of the location decision or the regional and, to some degree, the intrametropolitan location decisions of a given firm i n the G.V/.R.D. The solution to t h i s query might provide an empirical synthesis between regional and intrametropolitan l o c a t i o n . This study provides l i m i t e d intrametropolitan s p a t i a l analysis of the variation of these factors for given subpopulations. That s p a t i a l v a r i a t i o n of regional factors exists i n t h i s study at the intrametro-politan l e v e l suggests further research into the empirical synthesis of regional and intrametropolitan location i s required. 109 1. Nearness to markets Nearness to markets can be considered In a regional and i n t r a -metropolitan context. These tuo concepts, undifferentiated i n the present questionnaire, vary i n importance for d i f f e r e n t firms. Metropolitan Vancouver has r e l a t i v e l y good access to uorlduide markets due to i t s break-of-bulk l o c a t i o n . There are, houever, varying degrees of market a c c e s s i b i l i t y at the intrametropolitan l e v e l . As previously mentioned, there i s less s p a t i a l i n teraction betueen Vancouver's central and peripheral rings than u i t h i n them because of transportation linkages. Intrametropolitan nearness to markets depends upon the a v a i l a b i l i t y and e f f i c i e n c y of truck, r a i l , uater, and a i r ( i . e . seaplane) transportation. The absence of t r a f f i c congestion i s mainly related to truck transportation although i t has limited relevance to the other three transport modes mentioned above. Figure 4 . I l l demonstrates the s p a t i a l f r i c t i o n of distance i n terms of road t r a v e l time from the C.B.D. Nearness to the C.B.D. market decreases quickly u i t h respect to distance because the t r a v e l time to the C.B.D. rapidly increases u i t h respect to distance. Therefore, firms must effec t a tradeoff betueen nearness to central and/or peripheral markets in Metropolitan Vancouver. 2. General labour supply and 3. S k i l l e d labour supply The supply of both general and s k i l l e d labour i s influenced by the government's p o l i c i e s on minimum uages, labour laus, immigration and employment; as u e l l as the uages and t r a i n i n g of business organ-i z a t i o n s . Uith respect to the present study area, "Greater Vancouver has...a uell-educated productive labour force....Included i n t h i s labour pool i s v i r t u a l l y every type of s k i l l required by commerce and industry."13 Space for Industry, Greater Vancouver , Regional D i s t r i c t Planning Department, titles December 1970, pp. 9,10. I l l Since s k i l l e d workers generally earn more than unskilled workers, i t i s reasonable to assume that s k i l l e d workers generally l i v e i n better quality residences than unskilled workers. In other words, the supply of labour varies s p a t i a l l y within a metropolitan area. It i s therefore paramount that firms which require a certain type of labour locate in close proximity to th i s labour. If th i s i s not possible, higher wages or other benefits are required to att r a c t the labour supply. Consideration of a v a i l a b i l i t y of public transportation and housing for employees are also related to the problem of procurement of suitable labour inputs to a firm's production function. Attention to labour cannot be overstated since increased productivity t y p i c a l l y r e s u l t s from employee s a t i s f a c t i o n . k. Employee wage scales F.O.B. labour costs are e s s e n t i a l l y homogeneous throughout the intrametropolitan region. Wage homogeneity i s reinforced by trade union agreements which t y p i c a l l y apply throughout an urban region. Competitive wage rates, which further strengthen wage homogeneity, t y p i c a l l y occur i n urban regions because knowledge of regional wage rates i s ea s i l y obtained. As suggested above, firms which are r e l a t i v -ely inaccessible to the required labour supply, may have to provide additional benefits, i . e . t r a v e l l i n g time, a company car, etc., to compensate for the i r i n a c c e s s i b i l i t y . It i s therefore possible that certain intrametropolitan locations require r e l a t i v e l y higher employee wage scales to procure labour inputs at a tradeoff for the a v a i l a b i l i t y of other factor inputs, i . e . a v a i l a b i l i t y of large tracts of land. 112 5. Local property and business taxes Goldberg suggests that business taxes are constant within a region. Although l o c a l property taxes vary, they only comprise a 14 small percentage of t o t a l business taxes. That l o c a l property taxes are unjustly d i s t r i b u t e d i n the G.V/.R.D. i s established by Tomko who states: "...Assessment uniformity does not exist within the municipalities studied, and the degree of uniformity varied with the di f f e r e n t municipalities...Uniformity of assessments implies that the assessments of properties within a municipal j u r i s d i c t i o n are a uniform percentage of t h e i r market value...Equality of assessment between municipalities and land uses are not t r a i t s of the Property Tax System i n B r i t i s h Columbia...Equalization of assessments implies that the average assessment-market value r a t i o s of municipalities be equal."15 Therefore, there i s an unjust d i s t r i b u t i o n of the tax burden i n the G.V/.R.D. because either uniformity or equality does not exist.''' 6 Since l o c a l property taxes do vary, i t i s possible that t h i s factor influences intrametropolitan l o c a t i o n . 6. Truck transportation Trucks y i e l d excellent advantages over other modes of transport in an intrametropolitan area because they have r e l a t i v e l y lower i n i t i a l loading costs and of f e r door to door service. The a v a i l a b i l i t y of truck transportation i n the G.V/.R.D. i s related to the major highway network shown i n Figure 3.V/III. Intrametropolitan costs of truck transport, assuming equal bulk, depend on time/distance considerations. From Figure 4 . I l l , a firm which depends heavily on truck transportation to ship outputs to the C.B.D. w i l l f i n d a peripheral location a d i s -advantage with respect to truck transportation. Therefore, the a v a i l -a b i l i t y and cost of truck transportation can influence the i n t r a -metropolitan location of certain firms. 113 7. R a i l transportation R a i l transportation i s mainly used to transport goods over long distances due to r e l a t i v e l y high i n i t i a l loading costs and scale economies. Consequently, the volume of intrametropolitan r a i l f r e i g h t i s a small percentage of t o t a l r a i l f r e i g h t transport. The a v a i l a b i l i t y of r a i l services shown i n Figure 4.11/ varies s i g n i f i c a n t l y within the G.V/.R.D. and accordingly, can influence the intrametropolitan location of certain firms. B. C. Hydro, for example, o f f e r s s i t e s along i t s r a i l r o a d complete with siding trackage i f desired. Note i n Figure 4.IV that t r a f f i c can be interchanged and through rates are ava i l a b l e . The B. C. Hydro Railway connects into the: C.N.R., C.P.R., Burlington R.R., Milwaukee Roadnand B.C. Railway; the C.P.R. connects into the C.N.R., B.C. Railway and Great Northern Railway. 8. Water transportation Metropolitan Vancouver has three major port areas shown i n Figure 3.1: Burrard I n l e t , Roberts Bank and the Fraser River. A fourth area, Sturgeon Bank, i s viewed as a reserve area, p o t e n t i a l l y suitable for port use only when the above areas approach f u l l u t i l -i z a t i o n . Figure 3.VIII reveals that the South Arm of the Fraser River i s suited to deep-sea shipping while the North Arm of the Fraser River i s suited to shallow draft vessels. The s p a t i a l choice of water trans-port services accordingly influences the intrametropolitan location of certain firms. The high demand for i n d u s t r i a l waterfront property suggests that proximity to water transport services i s c r i t i c a l for some firms. Main waterfront users are saw, plywood and paper m i l l s , f i s h canneries, shipyards, petroleum r e f i n e r i e s , and non-metallic 17 minerals i n d u s t r i e s . 114 Figure 4.IV/ R a i l Transportation i n the G.V/.R.D. B.C.H.B. Railway Burlington Railway B. C. Hydro Railway C. N.R. C.P.R. B.C.Railway O i 2 3 Source: Industrial Development Dept., B.C.Hydro ' •' 1 " 1 & Power Authority, Vancouver, B.C. M«WS 115 9. Air transportation Figure 3.1 shows the location of Vancouver International Airport. Most of Metropolitan Vancouverfs a i r t r a f f i c flows through t h i s airport except for the seaplane base i n Coal Harbour which i s on the north side of the C.B.D. Firms increasingly consider t h e i r prox-imity to airports because these f a c i l i t i e s o f f e r rapid service at r e l a t i v e l y economical rates. A supplier of parts for equipment used i n B r i t i s h Columbia's mining industry would probably choose an i n t r a -metropolitan location whose time/distance i s r e l a t i v e l y close to the ai r p o r t . Should a breakdown occur, the required part can be rushed to meet the e a r l i e s t f l i g h t . Moreover, the trend i n a i r cargo i s changing. Not only can firms which ship low weight to high value take advantage of a i r f r e i g h t but firms which ship bulkier cargo, i . e . Volkswagen cars, or perishable cargo, i . e . t r o p i c a l produce, increas-ingly take)advantage of the scale economies rendered by Jumbo Jets. In order to meet the demands for a i r transport, Figure 4.V depicts the Federal Government's 1972 plans to bu i l d on the northern portion of Sea Island: a runway for containerized a i r cargo and a water/air cargo container terminal. Cost of the new runway system and additional services i s estimated at $lk m i l l i o n . The major reason for the expansion i s to replace existing a i r cargo f a c i l i t i e s which are i n s u f f i c i e n t to handle the volume of cargo anticipated from jumbo j e t s . Air cargo tonnage i s expected to increase from 4Q,0QQ tons/year at present to SD,00D tons/year i n 1977. On t h i s basis, completion date i s set for 1977-78. 1 8 Figure 4.V: V/ancouver International Airport: Sea Island Proposed mater/air cargo container terminal Proposed Runway for Cargo Bridge under construction Proposed Road Old Road to be dismantled Existing Cargo F a c i l i l Seaplane Base Areas to be Expropriated Source: An Interview with D.H.MacLeod, A.A.C.I.: Department of Public Works. cn 117 ID. Land prices or lease rates Land prices and lease rates vary s i g n i f i c a n t l y at the i n t r a -metropolitan l e v e l . This v a r i a t ion i s e s s e n t i a l l y caused by d i f f e r -e n t i a l s i t e q u a l i t i e s and r e l a t i v e location which interact through the supply and demand mechanism. Appendix II shows i n d u s t r i a l and com-mercial land values for selected s i t e s i n Metropolitan Vancouver, 1972. Industrial land values continue to generally r i s e due to increased 19 demand. Commercial land values remained r e l a t i v e l y stable with value increments, due to increased demand, occurring i n the C.B.D. 20 between Thurlow and Seymour Streets. The following discussion of lease rates refers to r e n t a l rates per annum. R e t a i l lease rates along p r i n c i p a l transportation corridors continued to r i s e with demand i n 1972. Supply of C.B.D. r e t a i l space only marginally expands i n the major o f f i c e developments. R e t a i l lease rates i n the C.B.D. range from $7.00 to $8.00 per square foot r i s i n g to over $12.00 per square foot for the prime corner l o c a t i o n . Elsewhere 21 i n the G.V.R.D., rates range from $3.50 to $5.00 per square foot. Lease rates of i n d u s t r i a l and o f f i c e s i t e s are also included i n Appendix I I . Since the supply presently exceeds demand for warehouse space, rent a l l e v e l s of i n d u s t r i a l buildings remain r e l a t i v e l y stable for 22 1972. Rental demand f o r older multi-storey warehouse and i n d u s t r i a l buildings, which are mostly located i n the C.B.D., i s declining. Unrefurbished buildings rent from $.80 to $1.00 per square foot f o r the ground f l o o r and $.40 to $.75 per square foot for the upper f l o o r s . Refurbished buildings rent up to $2.50 per square foot for the ground 23 f l o o r . Office r e n t a l rates, included i n Appendix II , have l e v e l l e d 24 of f due to an excess of supply over demand. 118 11. Construction costs The cost to construct a building i s comprised of several factors, some of which are unique to a given project. Employee wage scales and amount of labour, materials, l e g a l fees and financing are but a few of the construction cost components. Some of these factors are further influenced by the technological form and scale economies of the project. Aside from employee wage scales, i t i s reasonable to suggest that the construction cost factor inputs of a given project do not vary s i g n i f i c a n t l y far an intrametropolitan area. However, the unique q u a l i t i e s of a p a r t i c u l a r s i t e can influence construction costs whence intrametropolitan l o c a t i o n . The drainage, foundation conditions, topographical features, and whether or not the s i t e i s cleared, are factors which can strongly influence the construction cost, indeed the f e a s i b i l i t y , of a project. The range of construction costs for d i f f e r e n t structures i s shown i n Appendix I I . 12. Local government attitude to industry Local government attitude to industry i s p r i n c i p a l l y r e f l e c t e d through zoning. Since municipalities require tax revenue, a s p e c i f i c zoning policy within geographical constraints i s adopted in order to strengthen a municipality's economic base. Therefore, zoning varies by municipality and accordingly influences intrametropolitan location in the G.V.R.D. Favourable attitude to industry i s , however, conferred by certain organizations. Operating under p r o v i n c i a l l e g i s l a t i o n , B.C. Hydro encourages i n d u s t r i a l development throughout the Region. Here, f l e x i b l e f i n a n c i a l terms and project development are maintained. When-ever a project i n Metropolitan Vancouver l i e s beyond the scope of 119 i n d i v i d u a l municipalities cr can be undertaken by a liason organization, the G.V.R.D. (organization) f u l f i l l s t h i s need by providing services, regulating and co n t r o l l i n g a c t i v i t i e s , undertaking works, and, i n general, exercising functions which i t adopts. Furthermore, the Industrial Development Commission, created by regional municipalities and industry, offers a wide range of business services, i . e . s i t e a v a i l a b i l i t y , land prices, s t a t i s t i c s and leg a l advice, without fee and i n s t r i c t e s t confidence. 13. Cost of u t i l i t i e s The u t i l i t y t a r i f f rate for gas and e l e c t r i c i t y i s equal through-out the G.V.R.D. E l e c t r i c i t y , for example, i s costed either by a block or demand energy rate for respectively smaller or larger loads. Uith a block rate, price decreases with greater usage. A lower price per K.U.H. i s charged for more e f f i c i e n t usage under a demand energy 25 rate. Usage and e f f i c i e n c y of usage vary s p a t i a l l y because, as Goldberg demonstrates, a firm's production function and scale i t s e l f 26 vary s p a t i a l l y . Therefore, the cost of u t i l i t i e s to a given firm under a constant rate structure varies throughout Metropolitan Vancouver. Associated with the cost of u t i l i t i e s i s the i r a v a i l a b i l i t y . If demand for e l e c t r i c i t y exceeds 5,000 K.U.H., the firm requires a transmission l i n e rather than a d i s t r i b u t i o n l i n e . Lafarge Cement Ltd., Hooker Chemicals Ltd. and o i l r e f i n e r i e s are examples of such users. Since transmission l i n e s vary s p a t i a l l y i n t h e i r a v a i l a b i l i t y , intrametropolitan location i s influenced accordingly. A v a i l a b i l i t y i s usually reinforced by zoning such that i f a firm requires a C.BiD. location and more than 5,000 K.U.H., zoning precludes the firm from 27 a C.B.D. lo c a t i o n . 120 14. A v a i l a b i l i t y of public transportation for employees The a v a i l a b i l i t y of public transportation for employees varies s p a t i a l l y in the G.V.R.D. i n terms of service frequency and number of routes. Employees are most l i k e l y to use public transport on weekdays between 7.00 a.m. and 10.00 a.m., and 4.00 p.m. to 7.00 p.m. Bus timetables reveal s i g n i f i c a n t s p a t i a l v a r i a t i o n of service frequency at these times. For example, between 7.00 a.m. and 8.00 a.m. on weekdays, 12 buses stop at 41st and Granville heading north while i n the same period only 2 buses leave the Sexsmith loop for Richmond. Similar contrasts between central and peripheral locations exist on 28 other routes. The reason for the variation i n service frequency i s es s e n t i a l l y based on aggregate demand which i s related to population density. Consequently, the employee who l i v e s i n a peripheral location receives less frequent bus service than i f he l i v e d i n a central l o c a t i o n . There are also fewer bus routes i n peripheral locations. This could cause some inconvenience to walk to a bus route. Accordingly, the s p a t i a l v a r i a b i l i t y of public transportation for employees could influence the intrametropolitan location of certain firms. 15. A v a i l a b i l i t y of amenities i n the region Amenities such as adequate highways, heating, schools, sewage, l i g h t , water, and f i r e and police protection are generally offered throughout Metropolitan Vancouver. In some peripheral locations how-ever, the absence of some of these important amenities accordingly i n -fluences intrametropolitan l o c a t i o n . 16. A v a i l a b i l i t y of housing for employees A v a i l a b i l i t y of housing for employees can be important to firms which desire employee l o y a l t y . The a v a i l a b i l i t y of housing at a price 121 which employees can afford varies s p a t i a l l y as well as by firm* Firms which desire to locate or relocate within the Region might discover that a v a i l a b i l i t y of housing for employees s i g n i f i c a n t l y determines the intrametropolitan l o c a t i o n a l choice. 17. A v a i l a b i l i t y of large t r a c t s of land The a v a i l a b i l i t y of large t r a c t s of land i s required by some firms to accommodate a land extensive plant and/or to enable future on-site expansion. Since large t r a c t s of land are generally less costly and more abundant in peripheral locations, intrametropolitan location i s influenced by t h i s f a c t o r . 18. Absence of t r a f f i c congestion T r a f f i c congestion varies i n both time and space. In Metro-politan Vancouver, congestion generally increases on main a r t e r i e s which lead toward bridges. This occurs i n the d i r e c t i o n toward the C.B.D. from 7.00 a.m. to 9.00 a.m. and away from the C.B.D. from 4.00 p.m. to 7.00 p.m., Monday through Friday. Congestion also occurs at a more micro l e v e l i n the context of a c c e s s i b i l i t y whereby absence of t r a f f i c congestion i n r e l a t i o n to a p a r t i c u l a r s i t e i s important. Large r e t a i l shopping centres are usually considerate of t h i s factor i n planning t h e i r l o c a t i o n . 19. High q u a l i t y environment The environmental quality of a given s i t e depends somewhat upon the individual's subjective perception of what constitutes high q u a l i t y . Nevertheless, the absence of p o l l u t i o n and the presence of a r c h i t e c t u r a l and natural scenery are environmental quality considerations. These considerations vary throughout the intrametropolitan area and are l i k e l y to be important to o f f i c e and r e t a i l location decisions. E. Summary This chapter establishes that the present location question-naire survey i s of greater use to the land use rather than economics group of the HPS study. However, s i g n i f i c a n t changes in the questionnaire are required to f u l l y establish the importance of the location factors at the intrametropolitan l e v e l . Limited i n t r a -metropolitan analysis of the location survey questionnaire i s possible because the precise location for most firms i s known. The factors which comprise the survey appear suited to a regional rather than intrametropolitan location study because they usually display the most variation at the regional l e v e l . It i s , however, argued that these factors can s i g n i f i c a n t l y vary at the intrametropolitan l e v e l . That s p a t i a l v a r i a t i o n of regional factors exists i n t h i s study at the intrametropolitan l e v e l suggests that further research into the empirical synthesis of regional and intrametropolitan location i s required. 123 F. References """Perloff, H.S., Education for Planning, (Baltimore: John Hopkins Press, 1957), pp. 11-12. 2 This s p e c i f i c simulation model i s a r e p l i c a , expressed mathematically, of the way the G.l/.R.D. grows and functions. Manipu-l a t i o n of the model enables assessment of the present or future consequences of policy decisions i n order to avoid undesirable p o l i c i e s . ^Goldberg, M.A., "The I n t e r - I n s t i t u t i o n a l Policy Simulator: HPS" i n Real Estate Trends i n Metropolitan Vancouver 1972-1973, (Vancouver, B.C.: S t a t i s t i c a l and Survey Committee, 1973), p. 5. Ibid., p. 7. 5 I b i d . , pp. 5-7. ^Identity of those firms or a c t i v i t i e s which comprise the economic base and an approximate numerical value of the economic base m u l t i p l i e r are paramount. Canadian c i t i e s t y p i c a l l y have an economic base m u l t i p l i e r of approximately two. This means that one export job supports two l o c a l jobs; control of firms i n a c i t y ' s economic base i s desirable. The economic base m u l t i p l i e r i s derived from the r a t i o T/E where T = t o t a l urban employment and E = t o t a l export urban employment.7 Three well-known methods to measure the economic base are: the "whole industry method", the "value added method!!, and the "minimum requirements method." A general weakness with these three methods i s that categorization of employment as either export or l o c a l i s not easi l y attained; that over time, l o c a l a c t i v i t i e s change into export a c t i v i t i e s ; and that since the m u l t i p l i e r i s affected by c i t y s i z e , the nation provides the only v a l i d measurement unit.8 Also, agglomer-ation economies caused by an export a c t i v i t y can attract new jobs, aside from those l o c a l jobs supported by the export a c t i v i t y , to an area's economic base.9 Smith, Id. F., "Principles of Urban Development", (Vancouver, B.C.: University of B r i t i s h Columbia, 1972), p. 103. g Roterus, V. and Calef, Id., "Notes on the Basic-Nonbasic Employment Ratio", Economic Geography, 31, (1955), pp. 17-20. g Smith, Id.F., Op. c i t . , p. 134. Ibid., p. 133. 124 "^Goldberg, M.A., Intrametropolitan I n d u s t r i a l Location: Size and the Theory of Production, (Berkeley: University of C a l i f o r n i a , 1969), pp. 186-187. 1 2 I b i d . , p. 9. "^The e d i t o r ( s ) , "Greater Vancouver, B r i t i s h Columbia, Canada" (Vancouver and Louer Mainland Ind u s t r i a l Development Commission, Vancouver, B.C., 1971) p. 1. 14 Goldberg, M.A., Loc. c i t . , p. 6. 15 Tomko, Ul. L.,"An Analysis of the Real Property Assessments and Taxes i n B r i t i s h Columbia, "(Vancouver, B.C.: unpublished M.Sc. thesis, 1972), pp. 44, 117, 118. 1 6 I b i d . , p. 118. 1 7 Space for Industry, G.V.R.D. Planning Department, 1971, p. 28. 18 This information uas obtained i n an interview i n February, 1972 with MacLeod, D.H., A.A.C.I., Vancouver Regional Manager of Property Services for the Department of Public Ulorks. 19 "Office Space Survey, 1972." This survey was conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater Vancouver i n Real Estate Trends i n Metropolitan Vancouver  1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver, 1972) p. C-20. 2 Q I b i d . , p. C-24. 2 1 I b i d . , p. C-25. 2 2 I b i d . , p. C-21. 2 3 I b i d . , p. C-22. 2 4 I b i d . , p. C-7. 25 This information was obtained i n a telephone interview on March 6th, 1973 with Mr. George Barnett of B. C. Hydro. 26 Goldberg, M.A., "Intrametropolitan I n d u s t r i a l Location and the Theory of Production" (unpublished a r t i c l e , U.B.C, 1971) pp.1-20. 125 This information was obtained i n a telephone interview on March 6th, 1973, with Mr. George Barnett of B.C. Hydro. 28 This information was obtained from current bus timetables of the B r i t i s h Columbia Hydro and Power Authority. 126 CHAPTER V ANALYSIS OF THE QUESTIONNAIRE DATA A. Introduction This chapter explains the general method and summarizes the s i g n i f i c a n t a n a l y t i c a l r e s u l t s of the location survey questionnaire. A b r i e f mathematical Appendix , JV i s included for the reader's con-venience; Appendix III contains data uihich i s pertinent to Chapter V. The importance of s p e c i f i c questionnaire variables in the lo c a t i o n / relocation decision i s established. The si z e / l o c a t i o n factor re-gression models provide a limited empirical data base for the land use group i n t h e i r development of models which allocate economic a c t i v i t i e s across the Region. The " S t a t i s t i c a l Package for the Soc i a l Sciences" (SPSS) 1 i s used to perform the analysis because: "1. Several d i f f e r e n t types of desired data analysis can be simply and conveniently performed by a person with no programming experience; and 2. SPSS i s extremely f l e x i b l e with respect to data formats."2 There are 43 variables considered i n the s t a t i s t i c a l analysis; Table 5.1 defines each variable: Table 5.1 Variables Considered i n the S t a t i s t i c a l Analysis ID. Number: V001 SIC Number: V0Q2 Sector Groupings: VTJ03 1.1 - 1.3: 1 15.1 - • 15 2.1 - 2.2: 2 16.1 - 16.7: 16 3.1 - 3 17.1 - 17.3: 17 4.1 - 4.3: 4 18.1 - 18.3: 18 5.1 - 5.6: 5 19.1 19 6.1 - 6.4: 6 20.1 20 7.1 - 7.2: 7 21.1 21 fl.l - B.2: a 22.1 22 9.1 9 23.1 - 23.2: 23 1D.1 - ID.2: ID 24.1 24 11.1 - 11.2: 11 25.1 25 12.1 12 26.1 26 13.1 - 13.3: 13 27.1 27 14.1 - 14 Number of Employees: V004 Location Code: V005 1. C.B.D. 10. Neu Westminster 2. Vancouver: N.bJ. 11. Burnaby N. (North of the 3. Vancouver: N.E. Lougheed Highuay) 4. Vancouver: S.kl. 12. Burnaby S. (South of the Lougheed Highuay) 5. Vancouver: S.E. 13. Port Moody 6. Richmond 14. North Vancouver 7. Delta 15. West Vancouver a. Surrey 16. White Rock 9. Coquitlam 17. U.B.C. endoument lands 128 Table 5.1 Variables Considered i n the S t a t i s t i c a l Analysis - continued Location Survey Variables: VDD6 to V043 incl u s i v e Question 1: For each of the following factors would you please i n -dicate the l e v e l of importance i n your decision to locate your business i n the Vancouver Region. Range of responses per variable apart from the n u l l response: 1. unimportant 2. f a i r l y important 3. important k, absolutely e s s e n t i a l VD06: Nearness to markets VQ.07: General labour supply VDC-S: S k i l l e d labour supply VDD9: Employee wage scales VOID: Local property and business taxes V011: Truck transportation VD12: R a i l transportation V013; Water transportation VQ14: Air transportation VQ15 Land prices or lease rates VD16 Construction costs VQ17 Local government attitude to industry VD18 : Cost of u t i l i t i e s VQ19 : A v a i l a b i l i t y of public transportation for employees VQ20 A v a i l a b i l i t y of amenities i n the region VD21 : A v a i l a b i l i t y of housing for employees VQ22 : A v a i l a b i l i t y of large t r a c t s of land V023 : Absence of t r a f f i c congestion VD24 : High quality environment Question 2: I f you were to move from the Vancouver Region, would you please indicate the l e v e l of importance of the fallowing factors i n your decision to relocate elsewhere. Range of responses per variable apart from the n u l l response: 1. unimportant 2. f a i r l y important 3. important k. absolutely e s s e n t i a l 129 Table 5.1 Variables Considered i n the S t a t i s t i c a l Analysis - continued VLT25; Nearness to markets 1/026 General labour supply U027. S k i l l e d labour supply 1/028 Employee wage scales V029 Local property and business taxes V030 Truck transportation V031: R a i l transportation VQ32 Water transportation V033 Air transportation V034 Land prices or lease rates V035 Construction costs V036 Local government attitude to industry V/037 Cost of u t i l i t i e s 1/038 : A v a i l a b i l i t y of public transportation for employees VQ39 :. A v a i l a b i l i t y of housing for employees V040 A v a i l a b i l i t y of amenities i n region MQkl : A v a i l a b i l i t y of large t r a c t s of land MOkZ : Absence of t r a f f i c congestion V043 High quality environment 130 Figure 5.1. The Location Code, V0Q5. Source: "Municipalities of the Greater Vancouver Regional D i s t r i c t , " G.V.R.D. Planning Department, 1973. 131 No relevant purpose i s served i n t h i s report to s t a t i s t i c a l l y analyze V/001, i d e n t i f i c a t i o n number, or 1/002, SIC number, because a s t a t i s t i c such as the variance i s meaningless for nominal v a r i -ables. The meagre response also precludes analysis v ia SIC number. V/001 and V/002 are, however, treated as variables for programming convenience, while t h e i r c h a r a c t e r i s t i c s are inherently considered v i a subpopulations of V/005, location, and V/003, sector, respect-i v e l y . The location survey variable "Other (please s p e c i f y ) " i s ignored i n t h i s study due to extremely limited and id i o s y n c r a t i c response. Figure 4.1 i s a map which shows each area of V/005, the location code. B. Significance Analysis of Questionnaire Variables Frequency data derived from the MARGINALS subprogram i s used to analyze the questionnaire variables, VQ06 to V043 i n c l u s i v e , i n terms of th e i r importance. This p a r t i c u l a r analysis i s e s s e n t i a l l y inter-regional since no s p a t i a l v a r i a t i o n at the intrametropolitan l e v e l i s presently considered. The r e s u l t s of t h i s analysis are vi s u a l l y summarized for each subpopulation i n Figures I to VIII i n -clusive i n Appendix III.' Rather than discuss the importance l e v e l of each variable, Tables I to VII i n Appendix HI i s o l a t e variables con-sidered important i n the location and relocation decision by sub-population. Questionnaire variables are grouped a r b i t r a r i l y i n the category l a b e l l e d "important" i f more than 60% of the responses to a given variable are f a i r l y important (factor 2), important (factor 3), or absolutely e s s e n t i a l (factor 4). Approximately one-half of the questionnaire variables are important i n the location and relocation 132 decisions for manufacturing, r e t a i l , wholesale trade and storage, and a l l sectors. From the above, i t i s apparent that a comparison exists be-tween location and relocation c r i t e r i a for each subpopulation be-cause each of the variables from question 1 has a counterpart i n question 2. The fallowing l i s t summarizes each variable and i t s counterpart. Table 5.II. Counterpart Questionnaire Variables Variable from question §1 Counterpart variable from question #2  V006 VQ25 VDQ7 VD26 VDD8 VD27 V009 VQ28 VOID VQ29 V011 V03Q VD12 V031 VD13 V032 VQ14 V033 VQ15 V034 VD16 V0.35 VQ17 VQ36 VD18 VD37 V019 VD38 V02Q VD39 V021 VD40 V022 VD41 VD23 V042 VQ24 V043 Tables I to VII i n Appendix (III further contain a l l counterpart pairs which are both important as well as simi l a r i n response pattern for questions 1 and 2. The NONPARCORR subprogram i s used to generate Spearman rank corre l a t i o n c o e f f i c i e n t s as an index of responss pattern s i m i l a r i t y for counterpart pairs by sub-population. Nie, Bent and Hu l l suggest that the Spearman co-e f f i c i e n t s are applicable to data which i s at least o r d i n a l i n s c a l e . 3 A two-tailed test of significance i s performed because no e x p l i c i t hypothesis concerning the expected d i r e c t i o n of the co-e f f i c i e n t i s made. Table VIII i n Appendix IU summarizes s t a t i s t i c a l l y s i g n i f i c a n t , i . e . less than or equal to the .05 l e v e l , Spearman cor-r e l a t i o n s of counterpart variables by subpopulation. From Table VIII, i t i s evident that only the primary and infrastructure sectors display a r e l a t i v e l y d i s s i m i l a r response pattern between questions 1 and 2. This response pattern i s v i s u a l l y corroborated i n Figure VIII in Appendix 'III. Note that the primary and infrastructure sectors are severely constrained by a respective data paucity of 11 and 12 cases. C. Intrametropolitan Location of Industry Subpopulations This intrametropolitan analysis of industry subpopulation location i s based on frequency data. SPSS contains four subprograms which y i e l d one-way frequency d i s t r i b u t i o n s and related s t a t i s t i c s . These four procedures are: CONDESCRIPTIVE, C0DEB00K, FASTMARG and MARGINALS; MARGINALS i s used i n t h i s study. Each run of MARGINALS produced absolute, r e l a t i v e and cumulative frequency tables. Missing values caused by no response to a questionnaire variable or incom-134 plete information provided by a given firm are excluded from the tables. In f a c t , missing values are excluded wherever f e a s i b l e throughout t h i s study because t h e i r inclusion causes a degree of inaccuracy which increases u i t h the number of missing values r e l a t i v e to the number of cases. Tables IX to XV/ i n Appendix III present the absolute and r e l a t i v e frequencies at each location for a given subpopulation. Table XV/ reveals that the location d i s t r i b u t i o n of a l l firms studied i s heaviest i n the central areas: C.B.D., Vancouver N.W. and IVI.E. (please refer to Figures 5.1). The remaining industry subpopulations also reveal a central location d i s t r i b u t i o n but with s l i g h t v a r i -ations. Table IX shows that the location d i s t r i b u t i o n of primary sector firms i s heaviest i n the C.B.D. and moderate i n Vancouver N.W. and Richmond. The location d i s t r i b u t i o n of manufacturing firms i n Table X i s somewhat even u i t h heavier concentrations i n the C.B.D., Vancouver N.E. and IM.W. Table XI shows the location d i s t r i b u t i o n of wholesale trade and storage firms i s central u i t h the larger concen-trations i n the C.B.D., Vancouver N.W. and IM.E. The location d i s -t r i b u t i o n of r e t a i l firms i n Table XII i s central u i t h larger concen-trations i n the C.B.D. and Vancouver N.W. Table XIII shows that the location d i s t r i b u t i o n of infrastructure firms i s ce n t r a l l y concentrated i n the C.B.D. Financial and administrative service are shoun i n Table XIV to be cen t r a l l y located i n the C.B.D., Vancouver N.W. and N.E. It i s noted that the o v e r a l l trend of c e n t r a l l y located firms i s , i n a l l cases, wholly consistent with Metropolitan Vancouver's "core-ring" s p a t i a l form and the intrametropolitan location of bus-iness subpopulations developed i n Chapter I I I . I t i s argued that 135 the central d i s t r i b u t i o n trends are not caused by the propensity of head o f f i c e s to reply because multiple establishment firms mere instructed to report establishments separately. D. Size-Location Analysis of Industry Subpopulations Given the frequency d i s t r i b u t i o n s of where the various i n -dustry groups locate, analysis of where di f f e r e n t sizes of an industry class locate provides further empirical evidence towards a location theory which i s at least applicable to the Region. BREAKDOWN i s used i n t h i s study to analyze the dependent variable 1/004, number of em-ployees, with the independent variable V/005, l o c a t i o n . Goldberg suggests that the number of employees i s a good surrogate of a firm's s i z e . Table 5 . I l l shows the mean breakdown of V/004, number of em-ployees, by V/005, location f o r a l l sectors grouped together. Ignoring locations with only a few cases, Table 5 . I l l reveals that firms which locate i n Richmond, New Westminister, Burnaby S. and North Vancouver are larger on the average than those located i n the C.B.D., Vancouver N.W., Vancouver N.E., Vancouver S.W. and Vancouver S.E. Although Table 5 . I l l provides some evidence that larger firms locate c e n t r a l l y while smaller firms; locate peripherally for firms i n aggregate, i t ' i s unknown whether these firms are from the same industry subpopu-l a t i o n . Table 5.IV shows the mean breakdown of VQ04, number of em-ployees, by location group for each subpopulation. Here, V005, location, i s grouped as either central or peripheral because the t o t a l number of cases for each subpopulation i s too small to c a l c u l -ate meaningful s t a t i s t i c s for 17 location categories. I t i s evident from Table 5.IV that the mean l e v e l of employment d i f f e r s sub-136 Table 5 . I l l Mean BREAKDOWN of 1/004, number of employees, by V/005, l o c a t i o n . Mean # of cases 1. C.B.D. 115.342 111 2. V/ancouver: N.W. 53.520 50 3. V/ancouver: N.E. 119.143 28 4. V/ancouver: 5.W. 35.286 7 35. Vancouver: S.E. 111.000 6 6. Richmond 159.500 14 a. Surrey 48.143 7 9. Coquitlam 82.500 2 10. Neu Westminster 139.250 8 11. Burnaby N. 20.5 2 12. Burnaby 5. 195.765 17 13. Port Moody 2.000 1 14. North V/ancouver 217.182 11 15. West V/ancouver 6.500 4 17. U.B.C. endoument lands 37.667 3 Entire Population 108.768 271 s t a n t i a l l y betueen the central and peripheral locations of each sub-population except the manufacturing sectors. This mean l e v e l of employment d i f f e r e n t i a l suggests that larger firms locate c e n t r a l l y for primary, manufacturing, r e t a i l and wholesale sectors while smaller firms locate c e n t r a l l y for the infrastructure and adminis-t r a t i v e sectors. This generalization i s q u a l i f i e d by the fact that for primary, r e t a i l , wholesale, infrastructure and administrative sectors; only 5, 2, 2, 4, and 9 responses uere respectively received from peripheral locations. Moreover, the fact that smaller manu-facturing plants on average uere peripherally located could e a s i l y Table 5.IV Mean BREAKDOWN of V004, number of employees, by location group for each subpopulation Central Location Mean Peripheral Location Mean Total Population Mean 1. Primary Sectors 205.444 (9) 98.600 (5) 167.286 (14) 2. Manufacturing Sectors 119.404 (57) 84.250 (28) 107.824 (85) 3. R e t a i l Trade 327.500 (16) 12.500 (2) 292.500 (18) 4. Wholesale Trade and Storage 105.607 (28) 5.0 (2) 98.9 (30) 5. Infrastructure 88.857 (7) 463.750 (4) 225.182 (11) 6. Financial and Administrative Services 54.067 (104) 181.889 (9) 64.248 (113) Note: Numbers i n brackets, i . e . (.), refer to the number of cases used i n the ca l c u l a t i o n of a given s t a t i s t i c . Central locations are comprised of the C.B.D., Vancouver N.W., N.E., S.W., S.E., Burnaby North, and Burnaby South. Peripheral locations are comprised of Richmond, Surrey, Coquitlam, Neu Westminster, Port Moody, North and West Van-couver, and the U.B.C. endoument lands. occur by chance since Steed argues, "Greater Vancouver, houever, even i n 1965, had a rather large proportion of small...(manufacturing)... plants operating outside the inner core...""' Therefore, i t i s un-certain uhether the above s i z e - l o c a t i o n generalizations are v a l i d for given subpopulations due to i n s u f f i c i e n t data. It can only be stated u i t h s l i g h t confidence 'that i n general.";: larger firmsntend to locate jpentrally uhile smaller firms tend to locate peripherally, given a centralized d i s t r i b u t i o n of firms i n the G.V.R.D. 138 Since the mean s t a t i s t i c i s best understood with i t s standard deviation, further analysis of these s i z e - l o c a t i o n relationships i s required. However, the mean and standard deviation per se are not further considered because i n a l l of the cases i n Tables 5 . I l l and 5.IV/, the standard deviation i s approximately equal to twice the mean. At best, the use of the mean s t a t i s t i c above i s a good indication of central tendency. The s i z e - l o c a t i o n relationships suggested above are further analyzed v i a crosstabulation. In SPSS, FASTABS produces the same 7" output for integer variables as GROSSTABS but s i g n i f i c a n t l y cheaper. ' FASTABS i s therefore used for the crosstabulation analysis rather than GROSSTABS. Each run of FASTABS i s performed under the default option since i t i s desirable to exclude missing data; print labels; and print raw, column and t o t a l percentage tables. The s t a t i s t i c s requested for each run of the FASTABS subprogram are summarized as follows: "1. Chi-square (Fisher's test for a 2x2 table when less than 21 cases; Yates' corrected X2 for a l l other 2x2 t a b l e s ) . 2. Kendall's Tau B." 8 A b r i e f mathematical discussion of these s t a t i s t i c s i s found i n Appendix IV. Table 5.V shows the re s u l t s of the crosstabulation analysis of sector, number of employees and location for a l l sectors. The 2 very small X significance values associated with V003 x MOQk and V0Q3 x VQQ5 suggest that these two crosstabulations are s t a t i s t i c a l l y dependent. Therefore, labour i n t e n s i t y and the number of employees 2 depend on the sector i n question. The X significance value of 139 .3168 adds very weak support to the above hypothesis that larger firms locate c e n t r a l l y uihile smaller firms locate peripherally for firms i n aggregate. In fac t , Kendall's Tau B s i g n i f i c a n t l y suggests a very uieak degree of association between size and l o c a t i o n . Table 5.VI shows the re s u l t s of the crosstabulation analysis of the number of employees and location for each sector group. That larger firms locate c e n t r a l l y for primary and r e t a i l sectors i s very weakly supported by Fisher's exact test but d e f i n i t e l y supported by the significance of Kendall's Tau B. The s t a t i s t i c s i n Table 5.1/1 do not support the hypothesis that larger manufacturing firms locate c e n t r a l l y . It appears that no d e f i n i t e r e l a t i o n s h i p exists fo r manufacturing firms with respect to location and s i z e . This r e s u l t i s i n contradistinction to the evidence i n Table 3.XII which indicates that larger manufacturing firms locate peripherally and p vice versa. Although the corrected X test suggests an independent si z e - l o c a t i o n relationship for wholesale sectors, Kendall's Tau B indicates that there i s some tendency for larger wholesalers to locate c e n t r a l l y . The hypothesis that smaller firms locate c e n t r a l l y for the infrastructure and administrative sectors i s somewhat sup-ported by Table 5.VI. 140 Table 5.1/ Crosstabulation analysis of sector, number of employees and location for a l l sectors Note: 1/003 i s grouped into 27 categories, 1/004 into 4 categories and 1/005 into 17 categories. 1/004 i s grouped as follows: Sub-population 1 to 15 employees: 16 to 60 employees: 61 to 150 employees: 151 to 9,999 employees: Cross-ftabulation group group group group 1 2 3 4 Kendall's Taljl) Significance # of Cases A l l Sectors 1/003 x 1/004 1/003 x 1/005 t/004 x 17005 Not applicable Not applicable .05998/.0706 272 297 271 Table 5.1/1 Crosstabulation analysis of number of employees and location for each sector group Note: S t a t i s t i c s of association are not computed for crosstabulations which involve 1/003 because t h i s variable causes l x l or 1x2 tables to be generated. Mere, 1/005 i s grouped as central or peripheral while 1/004 i s grouped as follows: 1 to 60 employees: group 1 61 to 9,999 employees: group 2 Sub-population Cross-tabulation Corrected X of Fisher's Exact Test S i g n i f i -cance Kendall's TaUB/ Significance # of Cases Primary sectors U004 x 1/005 .37762 -.2444/.1117 14 Manufact-uring 1/004 x U005 .9935 -.02606/.3620 85 " Re t a i l Trade V004 x 1/005 .35948 -.28204/.0511 18 wholesale trade V004 x U005 .7958 -.18898/.0712 30 Infrastruc-ture V004 x 1/005 .19697 .44854/.0274 11 Finance and Administratioi i 1/004 x UQ05 .1772 .16691/.0044 113 141 E. Regression Technique This study u t i l i z e s stepwise l i n e a r regression analysis to determine the nature of the relationship between the plant size or number of employees, 1/004, and the questionnaire variables, 1/006 to 1/043 i n c l u s i v e . Since previous analysis reveals the r e l a t i o n -ship between 1/004 and location, i t i s possible to determine which questionnaire variables increase i n importance for firms of the same subpopulation i n t h e i r decision to locate c e n t r a l l y or peripher-a l l y within the G.V.R.D. and to relocate outside the G.V.R.D. It i s noted that regression can only demonstrate the s t a t i s t i c a l t e n a b i l i t y of an hypothesized cause-effect r e l a t i o n s h i p . Moreover, Harnett cautions against the "regression f a l l a c y . " "This f a l l a c y occurs when one attempts to re l a t e the values of a variable at one point i n time to the comparable values of that same variable at some other point i n time. The problem i n using rsgressioh or correla t i o n i n t h i s circumstance arises because of the tendency for unusually high or low values of a g random variable to be followed by more average values." In order to compute the regression equations, the means, standard deviations and a Pearson corr e l a t i o n c o e f f i c i e n t matrix based on a l l of the regression variables, i s calculated. Means and standard deviations are computed such that missing data are excluded per variable to thereby obtain meaningful s t a t i s t i c s . Calculation of the Pearson corr e l a t i o n c o e f f i c i e n t s i s performed with pairwise deletion of missing data i n order to, " . . . u t i l i z e as much of the data as possible i n the computation of each c o e f f i c i e n t . Pairwise de-l e t i o n has the disadvantage...under some circumstances...of producing coefficients...based on a d i f f e r e n t number of c a s e s . " 1 0 Since the # of cases command used i n the regression program s p e c i f i e s the 142 number of cases the correlations are based on, i t i s possible to perform regressions using a maximum or minimum number of cases. The maximum case i s that of the corre l a t i o n which uses more cases than a l l other correlations for a given subpopulation and vice versa. Therefore, what i s v a l i d for a rsgression run using the minimum number of cases i s also v a l i d using the maximum number of cases because more information i s provided. The converse, however, i s not necessarily true although no s i g n i f i c a n t differences between maximum and minimum runs occurred i n t h i s study. Pearson co r r e l a t i o n c o e f f i c i e n t s are used i n the regression analysis. Nie, Bent and Hul l state that: "The choice of the co r r e l a t i o n procedure to be used i s usually based on the type of data being employed. In general, Pearson product-moment correlations are used with i n t e r v a l scales. Rankings and ordin a l categories do not usually have these q u a l i t i e s . The Spearman and Kendall rank-order corre l a t i o n c o e f f i c i e n t s are gener-a l l y used with these ordinal variables....However, i n a c t u a l i t y there i s no firm agreement among practicing researchers on the, selection of c o r r e l a t i o n c o e f f i c i e n t s ? s p a r t i c u l a r l y on the a d v i s a b i l i t y of the use of Pearson correlations with ordinal data."11 Aside from the scale considerations which apply to the questionnaire variables, Kendall's Tau i s much more expensive to calculate than Pearson's corre l a t i o n c o e f f i c i e n t s . To process missing data, a l l data used i n the computation of both Kendall's Tau and Spearman's rank correlation c o e f f i c i e n t s must be core resident throughout the 12 cal c u l a t i o n procedure. Consequently, the maximum size matrix for f i l e storage of these ordin a l c o e f f i c i e n t s i s 3D x 3 D . 1 3 Since a 3 9 x 39 c o r r e l a t i o n matrix i s needed, the only way to use orginal correlations i s to keypunch a 39 x 39 matrix onto cards for a l l seven subpopulations. This astronomical task i s severely prone to 143 e r r o r . Moreover, t r i a l runs of ordinal c o e f f i c i e n t s are comparable to Pearson's c o r r e l a t i o n s . The main d i f f i c u l t y i n performing regressions over the questionnaire variables i s that i t i s uncertain whether the four values which each questionnaire variable can assume represent an i n t e r v a l s c a l e . Siegel defines an i n t e r v a l scale as one which, "...has a l l the c h a r a c t e r i s t i c s of an o r d i n a l scale, and when i n addition the distances between any two numbers on the scale are of known size....That i s , i f our mapping of several classes of objects i s so pre-cise that we know just how large are the i n t e r v a l s (distances) between a l l objects on the scale, then we have achieved i n t e r v a l measurement. An i n t e r v a l scale i s characterized by a common and constant unit which assigns a r e a l number to a l l pairs of objects i n the ordered set. In t h i s sort of measurement, the r a t i o of any two i n t e r v a l s i s independent of the unit of measurement and of the zero point. In an i n t e r v a l scale, the zero point and the unit of measurement are a r b i t r a r y . "1** In order to decide the reasonability of whether an i n t e r v a l scale and regression equations ex i s t for a given subpopulation, the i n t e r -vals are transformed to observe the s t a b i l i t y of the regression 15 r e s u l t s . Regressions were performed for each subpopulation on the questionnaire scale: 1. unimportant, 2. f a i r l y important, 3. important, and 4. absolutely e s s e n t i a l . This scale i s numerically equivalent to the vector (•, .33, .66, 1). It i s subjectively reasonable to attribute the value "0" and "1" respectively to the words "unimportant" and "absolutely e s s e n t i a l . " However, the numer-i c a l d i s t i n c t i o n between " f a i r l y important" and "important" causes doubt as to whether an i n t e r v a l scale e x i s t s . To overcome t h i s doubt, regressions were also performed for each subpopulation on the scale numerically equivalent to the vector (•, .5, .66, 1). A value of .5 i s subjectively attributed to the words " f a i r l y important" 144 because i t also seems reasonable to suggest that respondents per-ceive a larger difference between "unimportant" and " f a i r l y important" than " f a i r l y important" and ^important". Interval v a r i -ation i n t h i s fashion enables meaningful interpretation of the regression r e s u l t s . If l i t t l e difference i n the regression equation occurs using either scale, one can state that there i s e s s e n t i a l l y no v a r i a t i o n i n how respondents interpret the questionnaire scale numbered 1 to 4. In other words, respondents consistently assume an i n t e r v a l s c a l e . On the other hand, s i g n i f i c a n t regression equation differences between the two scales indicates the degree of u n r e l i a b i l i t y due to the v a r i a t i o n of i n t e r p r e t a t i o n . Therefore, the amount of regression change caused by a subjective scale transform-ation provides an index of response r e l i a b i l i t y whence the degree to which i t i s subjectively reasonable to assume that an i n t e r v a l scale e x i s t s . F. Regression Results Question 1; A l l sectors The regression equation for a l l sectors without scale trans-formation has a low R square value of .1862 yet a l l of the variables in the equation are s i g n i f i c a n t at the .01 l e v e l . This suggests that other variables not considered i n the questionnaire can also account for the proportion of variance i n 1/004. The regression equation i s : V/004 = 103.1V/022 - 78.63V017 + 40.63V/009 + 23.951/007 + 42.25V/021 - 26.81U024 - 21.23V/020 + 11.07V006 - 22.76V/011 + 31.54V/018 + 16.06V/014 + 21.58V/023 - 18.61V/010 - 11.35V/019 - 18.47V/013 + 21.521/012 - 5.99V015 + 3.97V/008 - 45.95. 145 The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e . F^4) and t h e i r signs may be interpreted uiith confidence for V/022, 1/017 and 1/009. Therefore, the normalized regression or BETA c o e f f i c i e n t s of these variables may also be used: Wariable BETA V/022: A v a i l a b i l i t y of large t r a c t s of land .34 V/017: Local government attitude to industry -.34 V/009: Employee wage scales .15 As V/022 and V/009 increase i n importance and V/017 decreases}in import-ance i n the decision for a l l sectors to locate i n the G.V/.R.D., plant size or the number of employees, V/004, increases. Since sim i l a r r e-su l t s exist for a l l sectors under the scale transformation (0, .33, .66, 1) to (0, .5, .66,1), i t i s reasonable to suggest that regression i s f e a s i b l e with the a l l sectors subpopulation for question 1. Question 2: A l l sectors The regression equation for a l l sectors without scale trans-formation has a low R square value of .2018 yet a l l of the variables in the equation are s i g n i f i c a n t at the .01 l e v e l . This suggests that other variables not considered i n the questionnaire can also account for the proportion of variance i n V/004. The regression equation i s : V/004 = 86.02V/041 + 60.76V/026 - 44.Q4V/035 - 49.27V/043 + 39.64V/033 + 411.861/034 - 17.79V029 + 22.141/039 - 14.77V/028 - 9.6V/025 + 26.02VG31 - 21.07V/030c- 2Q.28V/032 - 8.57V036 + B.63V/037 - 6.081/038 - 5.02V040 - 17.11. The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e . F£4) and their signs may be interpreted with confidence for V/041, V/026, V/043, 146 1/033, and 1/035. 1/035 i s excluded from the analysis however, because i t i s i n s i g n i f i c a n t for a l l sectors under the scale transformation. The normalized regression or BETA c o e f f i c i e n t s of these variables are: Variable BETA V041: A v a i l a b i l i t y of large tracts of land .32 V026: General labour supply .24 V043: High quality environment -.21 V033: A i r transportation .15 As 1/041, VQ26, and 1/033 increase i n importance and V/043 decreases i n importance i n the decision for a l l sectors to relocate outside the Region, plant size or the number of employees, 1/004, increases. Since s i m i l a r r e s u l t s (except for 1/035) exist for a l l sectors under the scale transformation (0 , 6.33, .66, 1) to (0, .5, .66, 1), i t i s reasonable to suggest that regression i s feasible with the a l l sectors subpopulation far question 2. Question 1: Primary Sectors The regression equation for primary sectors without scale transformation has a maximum R square value of 1.0. A l l variables i n the equation are s i g n i f i c a n t at the .01 l e v e l except V017, 1/019, 1/020 and V015 which are s i g n i f i c a n t at the .1 l e v e l . The regression equation i s : V004 = -317.6BV017 + 371.29V019 - 75.65V/020 + 386.69V015 - 469.11V010 + 127.92V009 + 76.56V011 + 47.54V022 - 4.161/013 + 151.09 The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e . F"J*4) and th e i r signs may be interpreted with confidence for a l l variables i n 147 the above regression equation. The BETA c o e f f i c i e n t s are: Variable BETA Y/017: Local government attitude to industry -1.28 V019: A v a i l a b i l i t y of public transportation for employees .79 1/020: A v a i l a b i l i t y of amenities i n the region -.24 V/015: Land prices or lease rates .91 I/O 10: Local property and business taxes -1.19 1/009: Employee wage scales .41 1/011: Truck transportation .19 V022: A v a i l a b i l i t y of large t r a c t s of land .15 1/013: Water transportation - .02 As V019, V015, 1/009, V011, and V/022 increase i n importance and V017, 1/020, VOID and 1/013 decrease i n importance i n the decision for primary sectors to locate i n the G.V.R.D., plant size or the number of employees, V004, increases. The r e s u l t s are somewhat simil a r for primary sectors under the scale transformation (0, .33, .66, 1) to (0, .5,.66, 1) except that V011 and VD22 are excluded from the r e -gression equation and V009 and V020 have BETA c o e f f i c i e n t s of d i f -ferent sign and magnitude. Therefore, the s t a b i l i t y of transformation i s not perfect for question 1, yet the high R square value i n both cases indicates that some of the re s u l t s are salvagable. As VQ19, V015, VQ11 and V022 increase i n importance and V017, VQ10 and V013 decrease i n importance i n the decision for primary sectors to locate i n the G.V.R.D., plant size or the number of employees, V004, i n -creases. 148 Question 2: Primary Sectors The regression equation for primary sectors without scale transformation has a high R square value of .99997. A l l variables i n the equation are s i g n i f i c a n t at the .01 l e v e l except 1/036 which i s s i g n i f i c a n t at the .05 l e v e l . The regression equation i s : 1/004 = -751.71V036 - 579.19V033 + 130.831/028 - 117.16V/039 + 44.21V040 + 4.44V026 + 2477.35 The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e F">4) and th e i r signs may be interpreted with confidence for a l l variables in the above regression equation. Only the BETA c o e f f i c i e n t s of the fallowing variables from the above equation are s i m i l a r i n sign and magnitude under the scale transformation (0, .33, .66, 1) to (0, .5, .66, 1): Variable BETA V036: Local government attitude to industry - 2.25 V026: General labour supply .01 V022: A i r transportation - 1.28 As V026 increases i n importance and V036 and V033 decrease i n import-ance i n the decision for primary sectors to relocate outside the G.V.R.D., plant size or the number of employees, V004, increases. It i s noted that V028, V039 and V040 i n the above equation do not appear i n the regression equation under scale transformation. Therefore, the above r e s u l t s derived from the BETA c o e f f i c i e n t s are accepted, given that regression i s only p a r t i a l l y f e a s i b l e for primary sector's question 2. 149 Question 1: Manufacturing Sectors The regression equation for manufacturing sectors without scale transformation has a low R square value of .2711. Most v a r i -ables i n the equation are s i g n i f i c a n t at the .05 l e v e l except V/009, V/014 and V/008 at the .01 l e v e l and V/006 and V/019 at the .1 l e v e l . V/007 and V/015 are i n s i g n i f i c a n t . The regression equation i s : V004 = 22.5V/007 - 29.74V/015 + 47.41V/018 + 45.B7V/022 - 50.3U017 + 35.33V/009 - 30.931/014 + 25.86V024 - 9.34V/011 + 34.54V/021 - 29.29V020 + 9.3V013 - 17.26V/016 + 12.4V/008 - 7.35V/006 - G.84V/019 + 21.31 V/018 and V/019 do not appear i n the regression equation under the scale transformation (0, .33, .66, 1) to (0, .5, .66, 1). In both equations, none of the BETA c o e f f i c i e n t s are s i g n i f i c a n t . Although regression i s feasible for question 1 of manufacturing sectors, l i t t l e can be said about the strength and di r e c t i o n of the rela t i o n s h i p be-tween V/004 and V/006 to V/024 i n c l u s i v e . Question 2: Manufacturing Sectors The regression equation for manufacturing sectors without scale transformation has a medium R square value of .4178. A l l v a r i -ables i n the equation are s i g n i f i c a n t at the .01 l e v e l . The regression equation i s : V/004 - 36.96V/039 - 55.091/042 + 74.48V/037 - 22.57V/036 + 19.74V/041 - .41V035 + 15.26V/032 - 19.28V/028 + 30.171/043 - 32.25V/030 + 12.63V/026 + 17.5V/031 - 18.24V/029 - 23.69V/033 - 24.13V034 + 1041U038 + 13.88V/040 + 6.92V/025 49.68. 150 The BETA c o e f f i c i e n t s of V042 and 1/037 from the above equation are sim i l a r i n sign and magnitude under the scale transformation (0,.33, .66, 1) to (0, .5, .66, 1): Variable BETA V042: Absence of t r a f f i c congestion -.30 V037: Cost of u t i l i t i e s .46 As VQ37 increases and V042 decreases i n importance i n the decision for manufacturing sectors to relocate outside the Region, plant size or the number of employees, VQQ4, increases. Since s i m i l a r r e s u l t s (except for V026) exist under the scale transformation, i t i s reason-able to suggest that regression i s fe a s i b l e u i t h the manufacturing sectors subpopulation f o r question 2. Question;1: R e t a i l Sectors The regression equation for r e t a i l sectors without scale transformation has a high R square value of .9974; a l l of the v a r i -ables considered i n the equation are s i g n i f i c a n t at the .01 l e v e l . The regression equation i s : V004 = 256.34V012 + 205.42V022 - 517.87V020 + 530.21V009 - 405.17V017 + 391.Q8V021 + 271.92V016 + 284.23V0-67.57V019 + 18.64V014 - 1810.55 The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e . F>4) and th e i r signs may be interpreted u i t h confidence for a l l variables except V014 i n the above equation. V019, VQ09, and V006, although s i g n i f i c a n t , are excluded because they do not appear i n the regression equation under scale transformation. The BETA c o e f f i c i e n t s are: 151 Variable BETA V012: R a i l transportation .43 VQ22: A v a i l a b i l i t y of large t r a c t s of land .29 VQ20: A v a i l a b i l i t y of amenities i n the region -.64 VQ17: Local government attitude to industry -.6 V021: A v a i l a b i l i t y of housing for employees .51 V016: Construction costs .47 As(VTJ12, V022, V021, and V016 increase i n importance and V020 and VD17 decrease i n importance for r e t a i l sectors to locate i n the G.V.R.D., plant size or the number of employees, V004, increases. Of the 15 variables which appear i n the regression equation under the scale transformation (•, .33, .66, 1) to (0, .5, .66, 1), 8 variables do not appear i n the above equation. This suggests that a s i g n i f i c a n t amount of change occurs between the two regression equations; the above re s u l t s are at best acceptable. Question 2: R e t a i l Sectors The regression equation for r e t a i l sectors without scale transformation has a high R square value of .9993; a l l of the v a r i -ables considered i n the equation are s i g n i f i c a n t at the .Ql l e v e l . The regression equation i s : V0Q4 = 474.8V041 - 694.95V027 + 731.48VD2B - 315.77VQ4Q - 231.47!V029 + 57.67VQ26 + 7.D1VQ25 + 524.53 The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e . F^4) and t h e i r signs may be interpreted with confidence for a l l variables except VQ25 in the above equation. Only V041 and VG40 are reviewed because other s i g n i f i c a n t variables do not appear i n the regression 152 equation under scale transformation. The BETA c o e f f i c i e n t s are: V/ariable BETA 1/041: A v a i l a b i l i t y of large t r a c t s of land .77 1/040: A v a i l a b i l i t y of amenities i n the region -.36 As 1/041 increases and 1/040 decreases i n importance for r e t a i l sectors to relocate outside the Region, plant size or the number of employees, 1/004, increases. Although the regression equation under the scale transformation (0, .33, .66, 1) to 0, .5, .66, 1) i s somewhat d i f f e r e n t from the above equation, the above r e s u l t s are considered acceptable. Question 1: Wholesale Trade and Storage Sectors The regression equation for wholesale sectors without scale transformation has a high R square value of .9289; a l l of the v a r i -ables i n the equation are s i g n i f i c a n t at the .01 l e v e l . The regression equation i s : V004 = 319.811/022 - 75.54V013 - 66.3V023 - 84.221/020 + 44.7BV024 + 100.22V011 - 45.15V012 - 42.541/016 - 22.77V006 + 46.731/018 -- 20.24V/008 + 73.841/021 - 27.27V019 - 15.931/015 - 110.63 The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e F> 4) and th e i r signs may be interpreted with confidence for V/022, V/013 and V/011. The BETA c o e f f i c i e n t s are: Variable BETA V022: A v a i l a b i l i t y of large t r a c t s of land 1.06 V013: Water transportation - »34 VD11: Truck transportation .**5 As V022 and V011 increase and V013 decreases i n importance i n the decision for wholesale sectors to locate i n the G.V.R.D., plant size 153 or the number of employees, V7Q04, increases. Of the 17 variables which appear i n the regression equation under the scale transform-ation (0, .33, .66, 1) to (•, .5, .66, 1), 8 variables do not appear i n the above equation. This suggests that a s i g n i f i c a n t amount of change occurs between the two regression equations; the above r e s u l t s are common to both equations. Question 2: Wholesale trade and storage sectors The regression equation for wholesale sectors without scale transformation has a high R square value of .9899; a l l variables in the equation are s i g n i f i c a n t at the .01 l e v e l . The regression equation i s : V/004 a 399.67V/041 - 204.57V/043 - 71.62U028 - 382.1317032 + 734.851/034 - 297.98V7035 + 333.74V/036 - 212.08V7039 + 75.1V/040 - 54.38V/026 + 273.88V7042 - 537.87V/037 - 161.21V/025 - 291.84V/033 + 133.88V7031 - 108.2V7029 + 71.23V7027 + 469.94 The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e . f JJs-4) and t h e i r signs may be interpreted for a l l variables i n the above scales . V/036 i s excluded from the analysis however, because i t i s i n s i g n i f i -cant for wholesale sectors under the scale transformation. V/026, 1/042, V/031, V/029 and V/027 are also excluded because t h e i r c o e f f i c i e n t s d i f f e r i n sign and magnitude from the transformed regression equation. The BETA c o e f f i c i e n t s considered are: Variable BETA V/041: A v a i l a b i l i t y of large t r a c t s of land 1.66 V/043: High quality environment - .70 V7028: Employee wage scales - .29 V032: Water transportation - 1.8 154 Variable BETA V/034: Land prices or lease rates 2.72 V/035: Construction costs -1.32 V/039: A v a i l a b i l i t y of housing for employees - .82 V/040: A v a i l a b i l i t y of amenities i n region .28 V/o37: Cost of u t i l i t i e s -2.29 V/025: Nearness to markets - .66 V/033: Air transportation -1.3 As 1/041, V034 and V/040 increase and V/043, V/028, V/032, V/035, V/039, V/037, 1/025, and V/033 decrease i n importance i n the decision for wholesale sectors to relocate outside the Region, plant size or the number of employees, V/004, increases. Since s i m i l a r r e s u l t s (except for V/036) exist for wholesale sectors under the scale transformation (0, .33, .66, 1) to((D, .5, .66, 1), i t i s reasonable to suggest that regression i s fea s i b l e with the wholesale subpopulation for question 2. Question 1; Infrastructure The regression equation for infrastructure categories without scale transformation has a high R square value of .99998. A l l of the variables i n the equation are s i g n i f i c a n t at the .01 l e v e l except 1/016 and V020 which are respectively s i g n i f i c a n t at the .05-'and .1 l e v e l s . The regression equation i s : V/004 = 384.52V/020 - 1297.31VQ16 + 794.58V/023 + 211.11V/008 - 148.93V/013 - 136.86V/018 + 63.18V019 + 205.57 The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e . F> 4) and thei r signs may be interpreted with confidence for a l l variables i n the above equation. However, only V/008 has a s i g n i f i c a n t BETA 155 value of si m i l a r sign and magnitude i n the transformed regression equation as w e l l . The BETA c o e f f i c i e n t i s : Variable BETA V0Q8: S k i l l e d labour supply .50 As VQTJ8 increases i n importance i n the decision for infrastructure sectors to locate i n the G.V.R.D., plant size or the number of em-ployees, V004, increases. S i g n i f i c a n t change occurs i n the regression equation under the scale transformation (0, .33, .66, 1) to (0, .5, .66, 1). This suggests that regression i s not very f e a s i b l e for question 1 of the infrastructure sectors yet the above r e s u l t i s salvagable. No regressions uere performed for question 2 of infrastructure firms because only 6 cases are av a i l a b l e . Thus, any re s u l t s uould be quite worthless uith t h i s data constraint. Question 1: Fin a n c i a l and administrative service sectors The regression equation for f i n a n c i a l sectors uithout scale transformation has a low R square value of .1687. Linear regression exists for a l l variables i n the equation at the .05 l e v e l except V019 and VD22 at the .01 l e v e l and V015, V018, V017, V021 and V007 at the .1 l e v e l . The regression equation i s : V004 = .38.57V024 + 26.16V019 + 34.87V022 - 22.31V016 + 13.04V00B - 14.81V020 + 13.65V009 - 50.79V011 + 39.65V012 + 20.07V023 - 13.69V015 + 18.57VQ18 - 10.4V017 + 11.64V021 - 8.28V007 + 59.62 The regular regression c o e f f i c i e n t i s s i g n i f i c a n t ( i . e . F> k) and i t s sign may be interpreted with confidence for V024. The BETA c o e f f i c i e n t i s : 156 Variable BETA 1/024: High quality environment -.28 As 1/024 decreases in importance i n the decision for f i n a n c i a l sectors to locate i n the G.V.R.D., plant size or the number of employees, V0Q4, increases. Since s i m i l a r r e s u l t s e x i s t for f i n a n c i a l sectors under the scale transformation (0, .33, .66, 1) to (0, .5, .66, 1), i t i s reasonable to suggest that regression i s f e a s i b l e u i t h the f i n a n c i a l sectors subpopulation for question 1. Question 2: F i n a n c i a l and administrative service sectors The regression equation for f i n a n c i a l sectors without scale transformation has a lou R square value of .2864. Linear regression exists for a l l variables i n the equation at the .01 l e v e l . The regression equation i s : V004 = 121.6V031 - 76.54V030 - 42.94V029 + 33.91V038 + 29.56V026 - 33.31V037 + 18.64V036 - 27.93V043 + 16.18V035 + 6.32V040 + 5.38V025 + 11.26V042 - 4.95V027 + 7.33V033 - 7.35V039 - 19.6. The regular regression c o e f f i c i e n t s are s i g n i f i c a n t ( i . e . F> 4) and th e i r signs may be interpreted u i t h confidence for V031, V030, and VQ29. Houever V030's BETA c o e f f i c i e n t d i f f e r s i n size and sign and V029 has an i n s i g n i f i c a n t F value under the regression trans-formation. The BETA c o e f f i c i e n t i s : Variable BETA VQ31: R a i l transportation .54 As V031 increases i n importance i n the decision for f i n a n c i a l sectors to relocate outside the Region, plant size or the number of em-ployees, VQ04, increases. Since s i m i l a r r e s u l t s e x i s t for f i n a n c i a l 157 sectors under the scale transformation (0, .33, .66, 1) to (•, .5, .66, 1), i t i s reasonable to suggest that regression i s feasible uiith the f i n a n c i a l sectors subpopulation for question 2. G. Summary of Results Derived from the Data Approximately one-half of the questionnaire variables are important i n the interregional location and relocation decisions for manufacturing, wholesale, r e t a i l and a l l sectors. Using Spearman rank correlation c o e f f i c i e n t s , i t i s evident that only the primary and infrastructure sectors display a r e l a t i v e l y d i s s i m i l a r response pattern between questions 1 and 2. A l l subpopulations at the intrametropolitan l e v e l , on the basis of the data are ce n t r a l l y located in terms of frequency. In general, larger firms locate' c e n t r a l l y small firms locate peripherally. There i s some ind i c a t i o n that larger firms locate c e n t r a l l y for primary and r e t a i l sectors; no d e f i n i t e relationship exists for manufacturing firms with respect to location and s i z e . Some tendency exists for larger wholesale firms to locate c e n t r a l l y . Smaller firms locate cent r a l l y for the infrastructure and administrative sectors. The regression analysis i s interpreted i n conjunction with the above si z e / l o c a t i o n r e l a t i o n s h i p s . 1. A l l Sectors: As V/022 and V/009 increase and V/017 decrease in importance i n the decision to locate i n the G.V/.R.D., plant size or the number of employees, V/004, increases. V/041, V/026, and V/033 increase and V/043 decreases in importance i n the decision to re-locate outside the Region, as V/004 increases. 2. Primary Sectors: As V/019, V/015, V/011 and V/022 increase and V/017, V/010, and V/013 decrease i n importance i n the decision to locate i n the G.V/.R.D., V/004 increases. V/026 increases and V/036 and V/033 decrease i n importance i n the decision to relocate outside the Region, as V/004 increases. 3. Manufacturing Sectors; Although regression i s feas i b l e for question 1 of manufacturing sectors, l i t t l e can be said about the strength and dire c t i o n of the relationship between V/004 and V/006 to V/024 in c l u s i v e i n the decision to locate i n the G.V/.R.D. As 1/037 increases and V/042 decreases i n importance i n the decision to re-locate outside the Region, V/004 increases. 4. R e t a i l Sectors: As V/012, V/022, V/021 and V/016 increase and V/020 and V/017 decrease i n importance i n the decision to locate i n the G.V/.R.D., V/004 increases. V/041 increases and V/040 decreases i n im-portance i n the decision to relocate outside the Region, as V/004) increases. 5. Wholesale Trade and Storage Sectors: As V/022 and V/011 i n -crease and V/013 decreases i n importance i n the decision to locate i n the G.V/.R.D., V/004 increases. V/041, V/034 and V/040 increase and V/043, V/028, V/032, V/035, VV039, V/037, V/025 and V/033 decrease i n importance i n the decision to relocate outside the Region, as V/004 increases. 6. Infrastructure: As V/008 increases i n importance i n the decision to locate i n the G.V/.R.D., V/004 increases. Due to insuf-f i c i e n t data, no regressions were performed for question 2. 7. Fin a n c i a l Sectors: As V/024 decreases i n importance i n the decision to locate i n the G.V/.R.D., V/004 increases. V/031 i n -creases i n importance i n the decision to relocate outside the Region, as V/004 increases. 159 H. References N. H. Nie, D.H. Bent and C H . Hull are credited f c r de-signing the SPSS computer programs while they attended Stanford University from 1964 to 1969 i n c l u s i v e . 2 N. H. Nie, D. H. Bent and C H. Hull, S t a t i s t i c a l Package  for the S o c i a l Sciences (New York: McGraw-Hill Book Company, 1970) p. 1. 3N. H. Nie, D. H. Bent and C. H. Hull, Op. c i t . , p. 153. 4 I b i d . t p. 149. 5 M. A. Goldberg, Intrametropolitan I n d u s t r i a l Location: Plant  Size and the Theory of Production (Berkeley, C a l i f o r n i a : University of C a l i f o r n i a , 1969) p. 186. "'Steed, G. P. F., Intrametropolitan Manufacturing: S p a t i a l  Form and Locational Dynamics i n Greater l/ancouver (unpublished paper, 1973) p. 7. 7N. H. Nie, D. H. Bent and C H. Hull, Op. c i t . , p. 116. g Russell, R., Introduction to SPSS at U.B.C, (Vancouver, B.C.: Best-Printer Co. Ltd., 1972) p. 26. 9 Harnett, D. L., Introduction to S t a t i s t i c a l Methods, (London: Addison-Wesley Publishing Co., 1970) p. 350. 1 Q N i e , N. H.,Bent, D. H., and H u l l , C.H., Op. c i t . , p. 184. U I b i d . , p. 144. 1 2 I b i d . , p. 153. "^Russel, R., Op. c i t . , p. 33. 14 Siegel, S., Nonparametric S t a t i s t i c s for the Behavioural  Sciences (New York: McGraw-Hill Book Company, 1956) p. 26. 15 The author wishes to express his sincere thanks to Professor G. K. White of the U.B.C. Math Department for the aid received to u t i l i z e t h i s method. 160 CHAPTER VI SUMMARY AND RECOMMENDATIONS UITH SUGGESTIONS FOR FURTHER RESEARCH A. Summary This study empirically determines which questionnaire v a r i -ables (factors) influence the r e l a t i v e location/relocation of various firms located i n the G.V.R.D. The location survey questionnaire comprises a portion of the HPS project which i s a large-scale, s p e c i a l research study of the Region. The s t a t i s t i c a l analysis and regression models of the present location survey questionnaire study provide an empirical data base for the land use group in the i r develop-ment of models which allocate economic a c t i v i t i e s across the Region. It i s noted that Metropolitan Vancouver's unique s i t e q u a l i t i e s characterize i t s "core-ring" s p a t i a l form. The thesis derives some general interregional r e s u l t s although the data i s extensively u t i l i z e d i n a decidedly intrametropolitan context. The interregional r e s u l t s depict which variables are im-portant i n the location and relocation decisions for each subpopu-l a t i o n . In contrast, an empirical basis for intrametropolitan business location policy i n the G.V.R.D. i s derived from the analysis herein. The intrametropolitan analysis i s feasible because size (i.e.number of employees) and location are known for most respondents. An empir-i c a l synthesis v i a some common independent variables i s suggested to l e i e x i s t , at least for the G.V/.R.D., between interregional and i n t r a -metropolitan l o c a t i o n . This w i l l aid i n the construction of future questionnaire studies for each subpopulation at the interregional or intrametropolitan levels i n the G.V/.R.D. Aside from the empirical value, t h i s thesis i s valuable i n terms of methodological and a n a l y t i c a l procedure. Modifications of the location survey procedure and format suggested i n the text are applicable to business location surveys i n general. The regression transformation technique i s applicable to other questionnaire studies where the type of response scale constructed i s i n question. Furthermore, the overview of location theory and Metropolitan V/ancouver are thought to provide an appropriate background to t h i s study as well as represent a substantial l i t e r a r y contribution. The f i r s t chapter provides an introduction to the study as well as a b r i e f overview of interregional location theory. Chapter II b r i e f l y reviews some of the rather extensive, major theories which underlie the intrametropolitan location theory of certain firms. The t h i r d chapter presents an h i s t o r i c a l , economic and business sector synopsis of Metropolitan Vancouver. This synopsis outlines some topics which are relevant to the present location/relocation, questionnaire study of firms located i n the G.V.R.D.: - h i s t o r i c a l development, s p a t i a l form and s i t e q u a l i t i e s ; - land j u r i s d i c t i o n and ownership; and - population and economic development. ^Very b r i e f consideration i s given to the intrametropolitan location theory of each subpopulation. Chapter IV considers the location survey questionnaire i n the context of the HPS project. Discussion of the questionnaire technique and the s p e c i f i c variables used in the 162 present study are a prelude to the s t a t i s t i c a l analysis of the questionnaire data i n Chapter V. The f i f t h chapter explains the general method and summarizes the s i g n i f i c a n t a n a l y t i c a l r e s u l t s of the location survey questionnaire. It i s unnecessary to summarize these resu l t s again. In addition to t h i s chapter, f i v e appendices are further presented. B. Assessment of Project Worth and Recommendations This study i s valuable because i t s s t a t i s t i c a l analysis and regression models provide an empirical data base for the land use group of the IPPS project in t h e i r development of models which allocate economic a c t i v i t i e s across the Region. Aside from the empirical value, t h i s thesis i s valuable i n terms of methodological and a n a l y t i c a l pro-cedure. The overview of location theory and Metropolitan Vancouver also r e p r e s e n t s substantial l i t e r a r y contribution. Nevertheless, there are some defici e n c i e s to which the following recommendations are pertinent. The p r i n c i p a l shortcoming of t h i s case study i s that the poor response rate and missing values i n h i b i t inferences about the lo c a t i o n / relocation of some subpopulations. These two defects could be r e c t i f i e d by contacting a larger number of firms and stating on the questionnaire that unanswered factors are considered as "1. unimportant". The following suggestions might have improved the quality, r e l i a b i l i t y and completeness of the questionnaire returns, given the poor response rate of the mailed survey. 1. A simple notice such as, "There are two d i f f e r e n t questions, please answer both sides of t h i s survey" printed on both sides of the questionnaire might have caused more complete responses. 2. The location survey questionnaire should have been mailed separately from the input-output questionnaire. Although t h i s en-t a i l s greater expense, the low response to the input-output question-naire would not impair responsiveness to the location survey questionnaire. 3. Although a personally administered questionnaire i s far more time consuming than mailed questionnaires, the quality, r e l i a b i l i t y and completeness of the questionnaires are more controlled v i a personal rather than written contact with prospective respondents. For example, the researcher could administer the questionnaire only to people responsible for determining the firm's present l o c a t i o n . Personal factors, although of a qu a l i t a t i v e nature, could be i d e n t i f i e d under the variable "Other (please s p e c i f y ) " . The v a r i a b i l i t y and magnitude of the personal factors would set a subjective constraint on data i n t e r p r e t a t i o n . I f the same personal factor occurs on several questionnaires, t h i s factor would appear i n subsequent questionnaire studies. A personal interview also enables elaboration on which aspects of a pa r t i c u l a r factor, i . e . high quality environment, are important, as well as c l a r i f i c a t i o n of any misunderstandings about the questionnaire. k. More precise d e f i n i t i o n of the factors i s required i n future studies. For example, i s the factor "Truck transportation" used i n the context of a v a i l a b i l i t y of, cost of, or both? Is the " A v a i l a b i l i t y of large t r a c t s of land" required for a large plant, onsite expansion, or both? 5. This study i s severely limited because i t i s unknown when the decision was made by firms to locate i n the G.V/.R.D. Consequently, there should be a question which determines when the firm established operations i n the G.V/.R.D. The answer would provide a r e l i a b i l i t y index to question 1. Indeed, i t i s doubtful whether a 30 year old firm could honestly answer question 1 and even i f i t could, the reasons for i n i t i a l l y locating are not necessarily the reasons for maintaining the same l o c a t i o n . There should also be a sequel to question 1 which reads: "For each of the following factors would you please indicate the l e v e l of importance i n your decision to presently remain located i n the V/ancouver Region." S i g n i f i c a n t differences between t h i s and question 1 would reveal when the degree of irrelevency between former and present decisions becomes s i g n i f i c a n t . Thus, only recently, i . e . 7 years or l e s s , say, located firms would be analyzed. 6. A question should be included which asks whether respondents actually intend to move. The hypothesis that older firms are more d i s s a t i s f i e d with t h e i r present location than newer firms could then be tested. Conditional to firms answering "yes" to t h i s question, they should be asked the municipality, province or country to which they plan to move. In t h i s regard, question 2 should be re-phrased to read, "If you were to move within the V/ancouver Region, would you please indicate the l e v e l of importance of the following factors i n your decision to relocate." Thus, intrametropolitan movement trends by size classes and industry sub-population could aid the land use group in th e i r development of models which allocate economic a c t i v i t i e s across the Region. 7. Question 1 asks respondents to consider the importance of nineteen location factors in t h e i r decision to locate i n the V/ancouver Region. A l l of these factors have potential to s p a t i a l l y vary i n an intrametropolitan context. Question 1 i s interregional i n nature 165 because the V/MIS considers the regional economy as a point i n space. However, intrametropolitan analysis of the location survey question-naire i s possible because the precise location for most firms i s known. Thus, s p a t i a l analysis of the variation of these factors for a given subpopulation within the Region i s f e a s i b l e . This l i m i t e d approach to empirically assess intrametropolitan location can be improved i f a supplement to question 1 states, "For each of the following factors would you please indicate the l e v e l of importance in your decision to locate your business i n the p a r t i c u l a r municipal-i t y in the Vancouver Region." Thus, the importance of the location factors at the regional and intrametropolitan levels could be f u l l y established and compared. C. Suggestions for Further Research The intrametropolitan dynamics of several subpopulations i s largely unresearched for Metropolitan Vancouver. Locational dynamics refer s to the net change i n the number of firms i n an area over time and i s expressed as follows: c = b - d + m- e where c = net change i n number of plants b = plant births d = plant m o r t a l i t i e s m = plants migrating into the area e = plants migrating out of the area. In p a r t i c u l a r , intertemporal analysis of which factors influence the d i f f e r e n t subpopulations to relocate within the Region would greatly a s s i s t the land use group in t h e i r development of a dynamic model of 166 intrametropolitan l o c a t i o n . The role of business as a source of municipal revenue and the impact which business has upon the s p a t i a l form of the G.V.R.D. are further reasons to assess the form, extent and composition of the intrametropolitan l o c a t i o n a l dynamics of each subpopulation. 167 BIBLIOGRAPHY A. BOOKS Alonso, U., Location and Land Use, (Cambridge, Massachusetts: Harvard University Press, 1964). Berry, B.J.L., Geography of Market Centers and R e t a i l D i s t r i b u t i o n , (Prentice-Hall, Inc., Engleuood C l i f f s , N.J., 1967). C h r i s t a l l e r , Ul., Die zentralen Orte in Suddeutschland, (Jena: Fischer, 1933). Friedmann, J. and Alonso, Ul., Regional Development and Planning (Cambridge, Massachusetts: The M.I.T..Press, 1964). Goldberg, M. A., Intrametropolitan Ind u s t r i a l Location: Plant Size  and the Theory of Production, (University of C a l i f o r n i a , Berkeley, 1969). Gottman, J., Megalopolis: The Urbanized Seaboard of the United States (Neu York: Tuentieth Century Fund, 1961). Greenhut, M. L., Plant Location: In Theory and In Practice, (University of North Carolina Press, 1956). Gregor, H., Geography of Agriculture (Engleuood C l i f f s , N.J.: Prentice-Hal i7n^cT7i^7oyr Harnett, D. L., Introduction to S t a t i s t i c a l Methods, (London: Addison-Ulesley Publishing Co., 1970). Hoover, E. M. and Vernon, R., Anatomy of a Metropolis (Garden City, Neu York: Doubleday and Company, Inc., 1959). HDyt, H. and Uleimer, E. Ul., Real Estate, (Neu York: The Ronald Press Co., 1966). Isard, Ul., Location and Space Economy, (Cambridge: M.I.T., Press, 19567. Johnson, J . H., Urban Geography: An Introductory Analysis, (Oxford, Permagon Press, 1966). Losch, A., Die raumliche Ordnung der Ulirtschaft, (Jena: Fischer, 1941). Losch, A., The Economics of Location, (Neu Haven: Yale University Press, 1954). Manners, G., The Geography of Energy (London: Hutchinson and Co. Ltd., 1964). 168 N. H. Nie, D. H. Bent and C. H. H u l l , S t a t i s t i c a l Package for the Soc i a l Sciences (New York: McGraw-Hill Book Company, 1970). Nourse, H. 0., Regional Economics, (New York: McGraw-Hill Book Company, 1968). P e r l o f f , H. S., Education for Planning, (Baltimore: John Hopkins Press, 1957). R a t c l i f f e , R. U., Internal Arrangement of Land Uses (Chicago: The University of Chicago Press, 1959). R a t c l i f f , R. U., Real Estate Analysis, (London: McGraw-Hill Book Co. Inc., 1961). Ricardo, D., P r i n c i p l e s of P o l i t i c a l Economy and Taxation, "Gn Rent", (Londoni J . M. Dent & Sons Ltd., 1911). Ring, A. A., The Valuation of Real Estate, (Englewood C l i f f s , New Jersey: Prentice-Hall, Inc., 1970). Russell, R., Introduction to SPSS at U.B.C., (Vancouver, B.C.: Best-Printer Co. Ltd., 1972). Siegel, S., Nonparametric S t a t i s t i c s for the Behavioural Sciences (New York: McGraw-Hill Book Company, 1956). Todd, E.C.E., The Federal Expropriation Act, A Commentary (Vancouver, Canada: The Carswell Co. Ltd., 1970). Vance, J . E., The Merchant's World: The Geography of Wholesaling (Englewood C l i f f s , N.J.: Prentice-Hall, Inc., 1970). Vernon, R. E., Metropolis 1985 (New York: Doubleday Anchor, 1960). von Thunen, J . H., Per i s o l i e r t e Staat in Beziehung auf Landwirtschaft  und National okonomie, Vol. I., (Hamburg, 1826). B. REPORTS Canada Year Book, 1972, D.B.S., Cat. No. CS-11-202/1972. Census of Canada, Dominion Bureau of S t a t i s t i c s , 1941, 1966. The e d i t o r ( s ) , "Greater Vancouver, B r i t i s h Columbia, Canada" (Vancouver and Lower Mainland Industrial Development Commission, Vancouver, B.C., 1971). "Office Space Survey, 1972." This survey was conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater Vancouver i n Real Estate Trends i n Metropolitan Vancouver  1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver, 1972). 169 "Population Trends i n the Lower Mainland 1921-1986" (New Westminister, B.C." Lower Mainland Regional Planning Board, 1968) Summary Report A p r i l 1968. Space for Industry, G.V.R.D. Planning Department, 1971. C. ARTICLES Burgess, E. W., "The Growth of the City", Park, R. E. e t . a l . (eds.), The City, (Chicago: University of Chicago Press, 1925). Colby, C. C , Centrifugal and Centripetal Forces in Urban Geography from Mayer and Kohn's Readings i n Urban Geography, (Chicago: University of Chicago Press, 1959). "The Port of Vancouver" i n "Office Space Survey, 1972." The e d i t o r ( s ) , "Greater Vancouver, B r i t i s h Columbia, Canada" (Vancouver and Lower Mainland Indu s t r i a l Development Commission, Vancouver, B.C., 1971). Goldberg, M. A., "The I n t e r - I n s t i t u t i o n a l Policy Simulator: HPS" in Real Estate Trends i n Metropolitan Vancouver 1972-1973, (Vancouver, B.C.: S t a t i s t i c a l and Survey Committee, 1973), p.5. Graham, Ul. E., "Vancouver's Suburban Commercial Structure," i n Real Estate Trends in Metropolitan Vancouver 1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver, 1972). "The Livable Region Project" under the auspices of the G.V.R.D. i n Real Estate Trends i n Metropolitan Vancouver 1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver: 1972). Hardwick, Ul. G., "Vancouver: the Emergence of a 'Core-Ring' Urban Pattern" i n Geographical Approaches to Canadian Problems, Gentlicore, R. L. (ed.), (Scarborough, Ont.!: Prentice-Hall, Inc., 1971). Harris, C . C. and Ullman, E. L., "The Nature of C i t i e s " i n Mayer,H.M. and Kohn, C.F. (eds.), Readings i n Urban Geography, (Chicago: University of Chicago Press, 1959). Siemens, A. H., "The Process of Settlement i n the Lower Fraser Valley -in i t s Pr o v i n c i a l Context" i n Lower Fraser Valley: Evolution  of a Cultural Landscape, Siemens, A.H., (ed.), (Vancouver, Canada: Tantalus Research Limited, 1968). Winter, G. R., "Ag r i c u l t u r a l Development i n the Lower Fraser Valley" in Lower Fraser Valley: Evolution of a Cultu r a l Landscape, Siemens, A.H., (ed.), (Vancouver, Canada: Tantalus Research Limited, 1968). 170 D. UNPUBLISHED MANUSCRIPTS Davis, I., "Notes on the Lau of Real Property", (Unpublished Manuscript). Goldberg, M.A., "Intrametropolitan Industrial Location and the Theory D f Production" (unpublished a r t i c l e , U.B.C, 1971). Smith, Id.F., "Principles of Urban Development", (Unpublished manuscript, 1972) . Steed, G.P.F., Intrametropolitan Manufacturing: S p a t i a l Form and Locational Dynamics i n Greater Vancouver (unpublished paper, 1973) . Griggs, N.J.F., Urban Grouth and Transportation Implications i n Port Development: a case study, V/ancouver, B.C. (unpublished paper, M.A. Thesis, U.B.C: 1967). Richmond, G. M., The Analysis of Manufacturing Location i n Greater  V/ancouver (unpublished M.A. Thesis, U.B.C: 1973). Tomko, Ul. L., "An Analysis of the Real Property Assessments and Taxes in B r i t i s h Columbia," (V/ancouver, B.C.: unpublished M.Sc. thesis, 1972). Fisher, R.M., The Boom i n Office Buildings (Ulashington, D.C: Urban Land Institute Technical B u l l e t i n No. 5B, 1967). Haig, R.M., "Touard an Understanding of the Metropolis," Quarterly  Journal of Economics, V/ol. kQ (May 1926). As quoted i n Alonso, Ul., Ibid. McGovern, P.D., "Industrial Development i n the V/ancouver Area", Economic Geography, 1961. Roterus, V/. and Calef, Ul., "Notes on the Basic-Nonbasic Employment Ratio", Economic Geography, 31, (1955). von Boventer, E., "Touard a uni f i e d theory of s p a t i a l economic structure," Papers and Proceedings of the Regional Science  Association, V/ol. 10: 1963. E. THESES F. PERIODICALS Ulendt, P.F., "Theory of Urban Land Values," Journal of Land Economics, Vol. 33, (August 1957). 171 G. LEGAL ACT DF PARLIAMENT Land Registry Act. R.S. 1948, C.171, s . l . : Sections 53 and 149, 221 to 233 i n c l u s i v e . H. LEGAL CASES Gibbs v. Messer i n The Lau of Real Property, Davis, I., (ed.), (V/ancouver, Canada: Best-Printer Co. Ltd., 1972). Johnson v. Anderson i n The Lam of Real Property', Davis, I., (ed.), (V/ancouver, Canada: Best-Printer Co. Ltd., 1972). I. INTERVIEWS A telephone interview on March 6th, 1973, with Mr. George Barnett of B. C. Hydro. Interview i n February, 1972, with MacLeod, D. H., A.A.C.I., Vancouver Regional Manager of Property Services for the Department of Public Works. 172 APPENDIX I 173 Business Sectors i n the V/ancouver Metropolitan Input-Output Study Sector 1: Agriculture and Fishing 1.1: Livestock and Crop Farms Includes: SIC011 - Livestock and livestock combination farms. SIC013 - F i e l d crop and f i e l d crop combination farms. SIC015 - F r u i t and vegetable farms. SIC017 - Other crop and livestock combination farms. 1.2: Specialty Farms and Services Includes: SIC019 - Miscellaneous livestock and nursery specialty farms. SIC021 - Services i n c i d e n t a l to agriculture (veterinary, hospital, hatchery, grading, spraying, etc.) 1.2: Fishing and Hunting Includes: SIC041 - Commercial f i s h i n g operations SIC045 - Fishery services (breeding, hatching, f i s h i n g gear repair, etc.) SIC0V7 - Commercial hunting and trapping Sector 2: Mining 2.1: Copper, Lead and Zinc Includes: SIC059 - Miscellaneous metal mines 2.2: Other Mines and Services Includes: SIC051 - Placer gold mines SIC052 - Gold quartz mines SIC057 - Uranium mines SICQ5B - Iron mines SICQ59 - Miscellaneous metal mines SIC061 - Coal mines SIC064 - Crude petroleum and natural gas industry SIC071 - Asbestos mines SICD72 - Peat extraction SICQ73 - Gypsum mines SIC079 - Miscellaneous non-metal mines SIC0B3 - Stone quarries SIC087 - Sand p i t s or quarries 174 SIC096 - Contract d r i l l i n g for petroleum SIC09B - Other contract d r i l l i n g 5ICQ99 - Miscellaneous services i n c i d e n t a l to mining Sector 3: Forestry 3.1: Logging and Services Includes: SIC031 - Logging (cutting, booming, hauling) SIC039 - Forestry services ( f i r e protection, r e f o r e s t r a t i o n , etc.) Sector 4: Construction 4.1: Building Construction Includes: SIC404 - Construction, alterations and repairs 4.2: Highuay Construction Includes: SIC406 - Construction and repair of highuays, bridges and streets 4.3: Special Trade Contractors Includes: SIC409 - Sub-rtrade. contractors SIC421 - Special-trade contractors Sector 5: Food and Beverages 5.1: Meat, Poultry and Fish Products Includes: SIC1Q1 SIC102 Processing, preparing, and packing of meat and poultry products Processing, preparing and packing of f i s h products. 5.2: Dairy Products Includes: SIC104 Processing and packing (milk, butter, cheese, ice cream, etc.) 5.3: F r u i t and Vegetable Processing Includes: SIC103§- Drying, canning and freezing of f r u i t and vegetables 5.4: Flour and Cereal Products Includes: SIC105 - Flour and breakfast cereal products industry SIC106 - Feed industry 175 5,5: Beverage Industry Includes: SIC1Q9 - Manufacturing and d i s t i l l i n g (malts, li q u o r s , mines, soft drinks, etc.) 5.6: Other Food Industries Includes: SIC107 - Bakery products industries SIC108 - Miscellaneous food industries (manu-facturing confections, o i l s , seasonings, sugar, etc.) Sector 6: wood Industries 6.1: M i l l i n g Includes: SIC251 - Sawmills, planing m i l l s and shingle m i l l s 6.2: Veneer and Plywood M i l l s Includes: SIC252 - Plywood and veneer m i l l s 6.3: Sash, Door and Other Millwork Includes: SIC254 - Manufacturing (door, sash, moulding, fl o o r i n g s , p a r t i t i o n s , kitchen-cabinets, pre-fabricated buildings, etc. 6.4: Other Wood Products Includes: SIC256 - Wooden box f a c t o r i e s SIC258 - C o f f i n and casket industry SIC259 - Miscellaneous wood industries (poles, fences, etc.) Sector 7: Paper and A l l i e d Industries 7.1: Pulp and Paper M i l l s Includes: SIC271 - Pulp and paper m i l l s ; building paper m i l l s 7.2: Other Paper Manufacturers and Converters Includes: SIC272 - Asphalt roofing manufacturers SIC273 - Paper box and bag manufacturers SIC274 - Miscellaneous paper converters Sector a: Chemical and Chemical Product Industries 8.1: Industrial Inorganic and Organic Chemicals Includes: SIC372 - Manufacturers of mixed f e r t i l i z e r s SIC378 - Manufacturers of i n d u s t r i a l chemicals 176 8.2: Other Chemicals Includes: SIC373 - Manufacturers of p l a s t i c s and synthetic resins SIC374 - Msnufacturers of pharmaceuticals and medicines SIC375 - Paint and varnish manufacturers SIC376 - Manufacturers D f soap and cleaning compounds SIC377 - Manufacturers of t o i l e t preparations SIC379 - Miscellaneous chemical industries (waxes, pesticides, etc.) Sector 9: Petroleum and Coal Products 9.1: Petroleum and Coal Products Includes: SIC365 - Petroleum r e f i n e r i e s SIC369 - Miscellaneous petroleum and coal products industries Sector 10: Non-Metallic Mineral Products 10.1: Glass and Cut Stone Products Includes: SIC353 - Stone products manufacturers SIC356 - Ready-mix concrete manufacturers SIC357 - Abrasives manufacturers 10.2: Cement, Clay, Concrete, Gypsum and Plaster Products Includes: SIC351 - Clay products manufacturers SIC352 - Cement manufacturers SIC354 - Concrete products manufacturers SIC355 - Ready-mix concrete manufacturers SIC358 - Lime manufacturers SIC359 - Miscellaneous non-metallic mineral products industries Sector 11: Metal Fabricating Industries 11.1: "Heavy" Fabricated Metal Products Includes: SIC301 - Boiler and plate works SIC302 - Fabricated s t r u c t u r a l metal industry SIC303 - Ornamental and a r c h i t e c t u r a l metal industry SIC307 - Heating equipment manufacturers 11.2: "Light" Fabricated Metal Products Includes: SIC304 - Metal stamping, pressing and coating industry SIC305 - Ulire and wire products manufacturers SIC306 - Hardware, t o o l and cutlery manufacturers 177 SIC308 - Machine shops SIC309 - Miscellaneous metal f a b r i c a t i n g industries Sector 12: Printing, Publishing and A l l i e d Industries 12.1: Pri n t i n g , Publishing and A l l i e d Industries Includes: SIC286 - Commercial pr i n t i n g 5IC287 - Platemaking, typesetting and trade bindery industry SIC288 - Publishing only SIC289 - Publishing and print i n g Sector 13: Manufacturing, Wot Elsewhere C l a s s i f i e d 13.1: Apparel and Fabricated T e x t i l e Products Includes: SIC187 - Canvas products, and cotton and jute bags industries SIC245 - Children's clothing industry SIC248 - Foundation garment industry 13.2: Furniture and Fixtures Includes: SIC264 - Office furniture manufacturers SIC266 - E l e c t r i c l i g h t and shade manufacturers 13.3: Other Manufacturing Includes: SIC087 - Sand p i t s or quarries SIC162 - Rubber products industries SIC165 - P l a s t i c s f a b r i c a t i n g industry SIG243 - Men's clothing industries Women's clothing industries SIC244 -SIC246 - Fur goods industry SIC249 - Miscellaneous clothing industries SIC261 - Household furniture manufacturers SIC266 — Miscellaneous furniture and fi x t u r e s manufacturers SIC291 - Iron and s t e e l m i l l s SIC315 Miscellaneous machinery and equipment manufacturers SIC321 - A i r c r a f t and a i r c r a f t parts manufacturers SIC323 - Motor vehicle manufacturers SIC324 - Truck body and t r a i l e r manufacturers SIC327 - Shipbuilding and repair SIC333 - Manufacturers of l i g h t i n g f i x t u r e s SIC335 - Communications equipment manufacturers SIC336 — Manufacturers of e l e c t r i c a l i n d u s t r i a l equipment SIC391 S c i e n t i f i c and professional equipment industries 178 Sector 14: R e t a i l Trade 14.1: R e t a i l Trade Includes: SIC631 - Food stores SIC642 - General merchandise stores SIC652 - T i r e , battery and accessories stores SIC656 - Motor vehicle dealers SIC658 - Motor vehicle repair shops SIC663 - Shoe stores SIC665 - Men's clothing stores SIC667 - women's clothing stores SIC669 - Clothing and dry goads stores SIC673 - Hardware stores 5IC676 - Household furniture and appliance stores SIC678 - Radio, t e l e v i s i o n and e l e c t r i c a l appliance repair shops SIC681 - Drug stores SIC691 - Book and stationery stares SIC692 - F l o r i s t s ' shops SIC694 - Jewellery stores SIC695 - Watch and jewellery repair shops SIC696 - Liquor, wine and beer stores SIC697 - Tobacconists SIC699 - R e t a i l stores, n.e.s. SIC869 - Miscellaneous services to business management Sector 15: Wholesale Trade and Storage 15.1: Wholesale Trade Includes: SIC109 - Beverage industries SIC264 - Office furniture manufacturers SIC335 - Communications equipment manufacturers SIC391 - S c i e n t i f i c and professional equipment industries SIC602 - Wholesalers of farm products SIC606 - Wholesalers of coal and coke SIC608 - Wholesalers of petroleum products SIC611 - Wholesalers of paper and paper products SIC612 - Wholesalers of general merchandise SICG14 - Wholesalers of food SIC615 - Wholesalers of tobacco products SIC616 - Wholesalers of drugs and t o i l e t preparations SIC617 - Wholesalers of apparel and dry goods SIC61B - Wholesalers of household furniture and furnishings SIC619 - Wholesalers of motor vehicles and accessories SIC621 - Wholesalers of e l e c t r i c a l machinery, equipment and supplies SIC622 - Wholesalers of farm machinery and equipment 179 SIC623 - Wholersalers of machinery and equip-ment, n.e.s. SIC625 - Uholesalers of metal and metal products SIC626 - Wholesalers of lumber and building materials SIC627 - Wholesalers of scrap and waste materials SIC629 - Wholesalers, n.e.s. Sector 16: Transportation and Communication 16.1: Railroad Transport Includes: SIC503 - Railway transport (passenger and frei g h t transport, r a i l r o a d ferry operation, etc.) 16.2: Water Transport Includes: SIC504 - Water transport (barge, ferry, f r e i g h t , towing, shipping, etc.) SIC505 - Services i n c i d e n t a l to water transport (boathouse service, longshoring, maintenance, etc.) , 16.3: Air Transport Includes: SIC501 - Air transport (passenger and f r s i g h t transport, a i r t a x i ) SIC502 - Services i n c i d e n t a l to a i r transport (air c r a f t r e n t a l and ser v i c i n g , terminal service, f l y i n g club or school) 16.4: Motor Transport, Pipelines and Transportation Services Includes: SIC506 - Moving and storage, used goods, uncrated SIC5G7 - Other truck transport SIC508 - Bus transport, interurban and r u r a l SIC509 - Urban t r a n s i t systems SIC512 - Taxicab operations SIC515 - Pipeline transport SIC516 - Highway and bridge maintenance SIC517 - Miscellaneous services incidental to transport SIC519 - Other transportation 16.5: Radio and Television Communication Includes: SIC543 - Radio and t e l e v i s i o n broadcasting 16.6: Telephone and Telegraph Communication Includes: SIC544 - Telephone systems SIC545 - Telegraph and cable systems 180 16.7: Other Transportation and Communication Includes: 5IC335 - Communications equipment manufacturers SIC527 - Other storage and warehousing SIC574 - Gas d i s t r i b u t i o n Sector 17: E l e c t r i c Power, Gas and Water U t i l i t i e s 17.1: E l e c t r i c Companies and Systems Includes: SIC572 - E l e c t r i c power generation, transmission and d i s t r i b u t i o n 17.2: Gas Companies and Systems Includes: SIC574 - Natural or manufactured gas d i s t r i b u t i o n to consumers 17.3: Water Supply, I r r i g a t i o n , Sanitary Services Includes: SIC576 - Water supply processing and d i s t r i b u t i o n ; i r r i g a t i o n systems operation, heating plant SIC579 - Other u t i l i t i e s , i . e . refuse disposal (garbage, ash, sewage, etc.) Sector 18: Finance, Insurance and Real Estate 18.1: Finance Includes: 5IC7Q1 - Banks and other deposit accepting establishments SIC7Q3 - Other c r e d i t agencies SIC7Q5 - Security brokers and dealers (including Exchanges) SIC707 - Investment and holding companies 18.2: Insurance Includes: SIC721 - Insurance c a r r i e r s (automobile, l i r e , health, l i f e , mortgage guaranty, pension, etc.) 18.3: Real Estate Includes: SIC735 - Insurance and r e a l estate agencies SIC737 - Real estate operators Sector 19: Personal Services 19.1: Personal Services Includes: SIC399 - Miscellaneous manufacturing industries, n.e.s. SIC871 - Shoe repair shops SIC872 - Barber and beauty shops SIC873 - Private households SIC874 - Laundries, cleaners and pressers (except s e l f - s e r v i c e ) SIC876 - Se l f - s e r v i c e laundries and dry cleaners SIC877 - Funeral services SIC879 - Miscellaneous personal services Sector 20: Health and Welfare Services 20.1: Health and Welfare Includes: SIC631 - Food stores SIC821 - Hospitals SIC822 - Related health care i n s t i t u t i o n s SIC823 - Offices of physicians and surgeons SIC824 - Offices of Para-medical personnel (Practitioners) SIC825 - Offices of dentists SIC826 - Diagnostic and therapeutic services, n.e.s SIC827 - Miscellaneous health services SIC828 - Welfare organizations Sector 21: Education and Related Services 21.1: Education and Related Services Includes: SIC801 - Kindergartens and nursery schools SICB02 - Elementary and secondary schools SIC803 - Schools of art and of the performing arts SIC804 - Vocational centres, trade schools, and business colleges SIC8Q5 - Post-secondary non-university educational i n s t i t u t i o n s SIC806 - U n i v e r s i t i e s and colleges SIC807 - L i b r a r i e s , museums and other r e p o s i t o r i e s SIC809 - Education and related services, n.e.s. SIC828 - Welfare organizations Sector 22: Services to Business Management 22.1: Business Services Includes: SIC099 - Miscellaneous services i n c i d e n t a l to mining SIC327 - Shipbuilding and repair SIC544 - Telephone systems SIC851 - Employment agencies and personnel suppliers SIC853 - Computer services SIC855 - Security and investigation services SIC861 - Offices of accountants SIC862 - Advertising services SIC863 - Offices of architects 182 SICB64 - Engineering and s c i e n t i f i c services SIC866 - Offices of lawyers and notaries SIC867 - Offices of management and business consultants SIC869 - Miscellaneous services to business management 5IC895 - Machinery and equipment rental Sector 23: Amusement, Recreation, Accommdation and Food Services 23.1: Amusement and Recreation Services Includes: SIC841 - Motion picture theatres SIC842 - Motion picture production and d i s t r i b u t i o n SIC843 - Bowling a l l e y s and b i l l i a r d parlours SICB44 - Golf clubs and country clubs SIC845 - Theatrical and other staged entertainment services SICB49 - Miscellaneous amusement and recreation services 23.2: Accommodation and Food Services Includes: SIC8B1 - Hotels and motels SIC883 - Lodging houses and r e s i d e n t i a l clubs SIC884 - Camping grounds and t r a i l e r parks SIC886 - Restaurants, caterers and taverns Sector 24: Federal Administration 24.1: Federal Government Includes: SIC902 - Defence administration SIC909 - Other federal administration This represents a l l government departments, services and agencies i n Metropolitan Vancouver and not reported elsewhere. Sector 25: P r o v i n c i a l Administration 25.1: P r o v i n c i a l Government Includes: SIC931 - P r o v i n c i a l administration This represents a l l government departments, services, and agencies i n Metropolitan Vancouver and not reported elsewhere (e.g. hydro and gas). Sector 26: Local Administration 26.1: Local Government Includes: SIC951 - Local Administration This represents a l l government departments, services and agencies not reported elsewhere. 183 Sector 27: Miscellaneous, Mot Elsewhere C l a s s i f i e d Includes: SIC391 - S c i e n t i f i c and professional equipment industries SIC896 - Services to buildings and dwellings SIC899 - Miscellaneous services, n.e.s. APPENDIX II 185 LOCATION AND SIZE OF SELECTED COMMERCIAL CENTRES - METROPOLITAN l/ANCOUl/ER LOCATION Vancouver COMMERCIAL FLOOR SPACE (sq. f t . ) West End Point Grey Dunbar K i t s i l a n o Kerrisdale Cambie Oakridge Marpole Mt. Pleasant Sunset Grandvieu Hastings Renfrew Kingsway Fraserview Total for Vancouver Burnaby New Westminster Coquitlam Port Moody West Vancouver North Vancouver City Richmond Delta Surrey Whalley Guildford Newton Cloverdale Sunnyside Wtijite Rock Total (excluding Downtown Vancouver) 294 211 3kQ 1,453 422 1,576 576 435 1,897 770 574 531 311 515 437 ,681 ,992 ,359 ,040 ,805 ,713 ,061 ,064 ,770 ,531 ,755 ,889 ,321 ,429 ,489 10,350,399 1,951,859 2,105,671 333,535 86,087 915,343 989,000 1,136,721 470,259 716,340 508,639 199,848 158,190 120,406 268,600 20,311,297 Source: Commercial Floor Space, Greater Vancouver Regional D i s t r i c t Planning Department, February, 1970. 186 PRINCIPAL NON-GOl/ERNMENT OFFICE BUILDINGS City af Vancouver, 1967 - 1972 Year No. of Rentable Completed Building Location Floors Space (sq.ft.) 1967 Bentall Centre (1st Tower) Pender and Burrary 21 245,000 1967 Royal General Insurance 1155 W. Hastings 8 97,000 1967 Baxter Bldg (Columbia Centre) 1111 W. Hastings 13 90,000 1967 P h i l l i p s Building 535 Thurlow 8 67,000 1968 Montreal Trust Building 700 West Pender 15 83,400 1968 P a c i f i c Palisades 747 Bute 3 20,000 1969 MacMillan Bloedel Bldg. Georgia and Thurlow 27 340,000 1969 Board of Trade Tower (Columbia Centre) 1177 West Hastings 27 286,000 1969 Guinness Tower 1055 West Hastings 23 260,000 1969 Bentall Centre (2nd Tower) Pender and Burrard 17 170,000 1969 Avord Building Robson and Hornby 20 130,000 1969 885 Dunsmuir Hornby and Dunsmuir 10 65,000 1969 Wall & Redekop 1070 West Broadway 3 21,000 1969 Moore Business Forms Bute and M e l v i l l e 4 5,000 1970 Cypress Place Broadway and Cypress 3 20,000 1970 Westcoast Transmission 1300 West Georgia 15 150,000 1971 Toronto-Dominion Tower ( P a c i f i c Centre) Georgia and Howe 30 540,000 1971 1090 West Pender 12 75,000 1971 The 1177 West Broadway 11 50,000 1971 Bank of Montreal 10th and Granville 5 26,000 1971 East I/an Medical Building 1750 East 10th Ave 5 33,000 1972 Norwich Union Building Georgia and Cardero 3 20,000 1972 814 Richards Street Bldg. 814 Richards 4 44,400 1972 Fairmont Willow Medical Dental Building 2525 Willow 8 28,000 1972 Kerrisdale Medical-Dental 42nd and Maple 3 40,000 1972 Sun Alliance Building (2nd stage) 885 Dunsmuir 9 52,000 u/c Royal Centre Georgia and Burrard 37 450,000 u/c Granville Square (Project 200) Ft. of Granville 28 350,000 u/c B.C.Automobile Assoc. Oak and Broadway 9 40,000 u/c Sandwell & Co.(1st phase) 1550 Alberni 8 90,000 u/c Bentall Centre (3rd Tower) Burrard 31 453,000 u/c B.C.F.P. Building 1050 West Pender 21 250,000 u/c 700 West Pender St.Bldg®, 700 West Pender 16 148,000 u/c 805 West Broadway Bldg. (medical-dental) 18 71,500 u/c 1665 West Broadway Bldg. 1665 West Broadway 6 42,300 u/c Century Plaza (apartments and commercial) 1144 Burrard 30 15,000 u/c under construction i n summer of 1972 187 PRINCIPAL NON-GOl/ERNMENT OFFICE BUILDINGS Greater Vancouver Suburban Areas, 1967 - 1972 (in excess of 5,000 square feet) Year Completed Building Burnabv 1968 Edmonds Building 1970 Operating Engineers Uniot 1970 Spectacular Productions 1971 A l l s t a t e Building 1972 Highfield Development 1972 Royal Bank Building 1972 Urban Computers 1972 North American L i f e 1972 Heathcote Holdings Ltd. 1972 Plaza 5000 1972 Buchanan Enterprises 1972 Government Employees Union Building New Westminster 1968 Office 1969 Medical Dental 1969 Commercial and Office 1969 Commercial and Office 1969 Re t a i l and Office 1970 Re t a i l and Office 1972 Re t a i l and Office Coquitlam 1967 Caisse Populaire 1968 Farwest Investments 1968 Coquitlam Medical-Dental 1969 Offices 1970 J . Ceuie Ltd. 1970 Farwest Investments 1970 Dan B r a l i c Richmond 1968 B.C. Packers Ltd. 1971 Crestuood Medical C l i n i c 1972 Canadian Projects Ltd 1972 R e t a i l and Offices on 2nd f l o o r 1972 Renovation to o f f i c e s 1972 Offices 1972 Offices 1972 Offices 1972 Offices on 2nd f l o o r No. of Rentable Location Floors Space (sq.ft.) 7879 Edmonds 2 14,000 4333 Ledger 4 16,700 6440 Oak 2 13,200 3876 Norland Ave. 2 12,000 4259 Canada Way 2 60,400 7291 Kingsway 2 12,000 4025 McConnell 1 5,874 4221 Kingsway 6 29,500 6545 Bonsor 2 16,000 5000 block Kingsway 3 23,200 4489 Buchanan 2 25,000 4929 Canada Way 3 13,000 313 Sixth Street 2 7,200 610 Royal Avenue 2 12,600 712 Sixth Street 1 5,200 765 Sixth Street 2 7,500 404 Sixth Street 2 8,000 719 Sixth Street 2 5,000 450 Sixth Street 2 (16,980 1013 Brunette Ave 2 5,946 1062 Austin Ave 2 5,280 218 Blue Mountain St 1 6,15'3 946 Brunette Ave 2 5,304 1850 H i l l s i d e Ave. 1 9,487 1046 Austin Ave. 2 9,570 Blue Mountain and Lougheed 2 5,602 430 Moncton St. 2 15,300 605 Gilbert Rd. 3 15,850 805 Anderson Rd 3 32,000 605 No. 3 Road 2 13,200 818 Park Place 2 16,104 387 No. 3 Road 2 7,500 826 Granville Ave 2 9,892 641 Buswell St. 3 19,016 363 No. 3 Road 2 10,000 188 Greater Vancouver Suburban Areas, 1967-1972 (continued) Year (R Completed Building Location No. of Floors North Vancouver City Rentable Space (sq.ft.) 1967 Medical Centre 145 East 13th St 9 29,160 1968 Offices 2601 Westview Dr. 2 10,320 1969 Offices and Apartments 1441 St. Georges Ave. 16 20,626 1970 Offices 140 west 15th St. 2 16,700 1971 R e t a i l , Offices and Apartments 130-148 west 16th St. 14 12,460 1971 Re t a i l and Offices 1133-1139 Lonsdale Ave 2 9,537 1971 Offices 133 west 15th St. 1 10,555 1972 Commercial and Apartments 130-144 west 14th St. 24 5,229 1972 Offices 145 west 15th St. 3 28,020 west Vancouver 1967-71 Total Office space constructed 30,000 Source: "Office Space Survey, 1972". This survey was conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater Vancouver i n Real Estate Trends i n Metropolitan  Vancouver 1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver: 1972) pp. C-15 to C-17. 189 Indust r i a l Land Values, 1972 Vancouver Bambie to Dak (6th to 8th Avenue) Cambie to Main (2nd to 8th Avenue) Powell (south side) South of Powell (Glen-Victoria Dr.) Clark Drive Boundary Road area (poor footings) Boundary Road area (good footings) Marine Drive area Burnaby Lougheed Highway (at Boundary Road) Lougheed Highway ( v i c i n i t y of lilillingdon) Lougheed Highway (areas with poor footings) lilillingdon area Marine Drive area - unprepared - serviced and prepared Lake City ( f u l l y serviced) M4 - Beresford area North Vancouver* Not waterfront and serviced Port Coquitlam Acreage (not waterfront) Serviced l o t s Richmond $ per Square Foot 7.00 - 8.00 5.00 - 6.00 4.00 - 5.00 4.00 - 5.00 4.00 - 5.00 $ Per acre 0.50 - 0.80 40,000 - 50,000 50,000 - 75,000 55,000 - 75,000 60,000 - 70,000 75,000 - 90,000 40,000 - 50,000 40,000 - 55,000 8,000 15,000 - 20,000 50,000 - 60,000 45,000 *25,000 - 40,000 12,000 - 15,000 20,000 - 40,000 no recent sales have occurred. Source: "Office Space Survey, 1972". This survey was conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater Vancouver i n Real Estate Trends in Metropolitan  Vancouver 1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver: 1972) p. C-20. 190 Commercial Land Values, 1972 $ Per Square Foot Vancouver Fina n c i a l and R e t a i l Core (area bounded by Hastings-Robson-Seymour-Thurlouj): Hastings and Pender Streets 35.QD - 55.00 Georgia 50.00 - 75.00 Robson 20.00 - 35.00 Burrard 50.00 - 65.00 Hornby and Howe Streets 25.00 - 50.00 Georgia - west of Thurlow 25.00 - 30.00 Burrard - Smithe to Davie 15.00 - 20.00 Davie, Robson, Denman 15.00 - 30.00 South Granville 20.00 - 25.00 Broadway: Granville-Cambie 12.00 - 15.00 Cambie-Main 8.00 - 12.00 East Hastings - east of Clark Drive 6.00 - 10.00 Kingsway 5.00 - 7.00 Burnaby Kingsway: Patterson 6.00 - 7.00 LJillingdon 6.00 - 7.00 Sperling 5.00 East Hastings 5.00 - 6.00 North Vancouver Upper Lonsdale 9.00 - 15.00 Lower Lonsdale 5.00 - 8.00 North Vancouver: Marine Drive 6.00 - 8.00 West Vancouver: Ambleside-Dundarave 8.00 - 14.00 Richmond: Brighouse 6.00 - 7.00 Surrey: King George Highway 4.00 - 5.00 Coquitlam North Road 4.00 - 5.00 Brunette and Austin 3.00 - 4.00 Port Coquitlam: Shaughnessy Street 4.50 - 5.00 Source: "Office Space Survey, 1972". This survey was conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater Vancouver i n Real Estate Trends in Metropolitan  Vancouver 1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver: 1972) p. C-24. I n d u s t r i a l Rental Values, 1972 "The following table i l l u s t r a t e s r e n t a l l e v e l s for conventional types of basic space having approximately 10 per cent of the space finished as o f f i c e s or display areas, c e i l i n g heights of 14 feet, unsprinklered, not on r a i l , an ordinary i d e n t i t y factor, and bylaw parking and loading f a c i l i t i e s only. The higher rate would apply for areas of less than 8,000 square feet and the lower rate would apply for larger areas." Rental Value False Creek (North and South s i d e s ) : Main to Granville 1.50 - 1.70 Granville to Burrard 1.50 - 1.70 Clark Drive area 1.40 - 1.70 Boundary Road area 1.40 - 1.70 S. E. Marine Drive area 1.40 - 1.70 North Vancouver 1.30 - 1.50 Richmond 1.20 - 1.40 Port Coquitlam 1.20 - 1.40 Source: "Office Space Survey, 1972". This survey was conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater Vancouver i n Real Estate Trends in  Metropolitan Vancouver 1972-1973 ( S t a t i s t i c a l and Survey Committee, Vancouver: 1972) p. C-21. 192 Office Rental Values, 1972 Rental Range Vacant Vancouver Downtown Peninsula 2.50 - 8.00 2)6-3)6 Broadway 2.00 - 8.00 4)6 - 5)6 East Hastings 2.00 - 4.50 yk - 4)6 Fraser 1.50 - 4.00 1 - 2 Main 2.50 - 4.50 2)6-3)6 Kingsuiay 2.50 - 4.50 1 - 2 Other 2.00 - 7.75 4)4 - 5)6 - 3)6 - 4)6 Total - 3 - 4 Suburbs Burnaby 3.00 * 5.50 4)6 - 5)6 North Vancouver City 3.500 -- 5.50 3 - 4 west Vancouver 3.00 - 6.00 1)6-2)6 Richmond 3.00 - 6.00 5 - 6 4 - 5 TOTAL - 3 - 4 Source: "Office Space Survey, 1972". This survey was conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater Vancouver i n Real Estate Trends i n Metropolitan  Vancouver 1972-1973. ( S t a t i s t i c a l and Survey Committee, Vancouver: 1972) p. 193 Metropolitan Vancouver Construction Costs per Square Foot (mid-year)  1969 1972 Office Buildings Wood frame (2 storeys) 13.00 • - 16.00 16.00 - 19.00 Concrete - up to B storeys 19.00 • - 24.00 20.00 - 25.00 - up to 20 storeys 22.00 • - 27.00 25.00 - 30.00 - over 20 storeys 24.00 -- 32.00 27.00 - 35.00 Parking Garages Single raised deck u i t h on-grade parking 3.25 • - 3.75 3.75 - 4.50 Tuo or three storeys above and on-grade parking 4.25 - 5.00 5.50 - 6.50 Multi-storey parking 5.50 - 6.50 6.25 - 8.25 Basement parking in conjunction u i t h multi-storey parking or o f f i c e buildings 7.00 • - 9.00 a.00 - 10.00 Shopping Centres Concrete department stores 16.50 • - 20.00 17.50 - 21.00 Steel frame large area prestige stores 14.00 • - 16.50 15.00 - 17.50 Supermarkets 11.00 • - 15.00 12.50 - 16.00 Re t a i l unit stores - uood frame and block B.00 • - 11.00 10.00 - 13.00 - l i g h t s t e e l frame and block 11.00 -- 14.00 11.50 14.50 Parking areas 0.45 • - 0.55 0.45 im 0.60 Light In d u s t r i a l and Warehouse Buildings Wood frame small 5.50 • - 7.00 7.50 _ 9.50 Steel and concrete block 6.50 • - 9.00 a. 00 - 10.00 Reinforced concrete 7.50 • - 10.00 9.00 - 12.00 Source: "Office Space Survey, 1972." This survey uas conducted by Western Realesearch Corporation Ltd. for the Real Estate Board of Greater Vancouver i n Real Estate Trends i n Metropolitan  Vancouver 1972-1973. ( S t a t i s t i c a l and Survey Committee, Vancouver: 1972) p. C-27. APPENDIX III 195 Table I. Significance Analysis of Questionnaire Variables for Primary Sectors. Spearman Correlation Significance .78 .04 Important Counterpart Pair 1. V0Q8: 92.3% 2. VQ27: 90% 3. VQD6: 84.6% 4. VD.26: 80% 5. V007: 76.9% 6. V025: 70% 7. V036: 70% 8. V015: 61.5% 9. V017: 61.5% VQ06 x V025 196 Table I I . Significance Analysis of Questionnaire Variables for Manufacturing Sectors Important Counterpart Spearman Significance Pair Correlation 1. V028: 90.6% V006: V/025 .64 .001 2. V006: 90% V007: V026 .70 .001 3. V026: 89.1% 1/008: 1/027 .90 .001 4. V025: 87.5% V009: V028 .30 .022 5. V029: 87.5% VOID: 1/029 .40 .002 6. 1/036: 87.3% V011: V030 .82 .001 7. V007: 87.2% 1/015: V034 .43 .001 S. V030: 85.9% V016: V/035 .46 .001 9. V034: 85.9% 17017: V036 .46 .001 10. V011: 83.8% V018: V037 .48 .001 11. 1/035: 82.8% V020: V039 .66 .001 12. 1/037:. 82.8% 13. 1/008: 80% 14. V027: 76.6% 15. V015: 75.6% 16. V017: 74.4% 17. V/018: 73.1% 18. V040: 71.9% 19. V009: 71.8% 20. V010: 70.5% 21. V016: 69.2% 22. V020: 69.2% 23. U039: 67.2% 24. V031: 64.1% 25. V019: 61.5% 26. V042: 60.9% 197 Table I I I . Significance Analysis of Questionnaire Variables for R e t a i l Sectors Important Counterpart Spearman Significance Pair Correlation 1. VC-06: 96.2% VDQ7 X V026 .88 .001 2. VD25: 94.4% V008 X VQ27 .87 .001 3. VQ29: aa.9%1 VDQ9 X V028 .77 .001 4. VQ37: aa.9% V010 X V029 .55 .035 5. V04Q: aa.2% V011 X V030 .7D .004 6. VQ2D: 88% V015 X VD34 .83 .001 7. VOQfl: 87.5% V017 X VD36 .72 .004 a. VDQ9: 84% V018 X VD37 .57 .028 9. VQ10: 84% < VD20 X V039 .69 .005 10. V011: 84% VQ21 X VQ40 .76 .002 11. V03Q: 83.3% VQ23 X V042 .81 .001 12. VQQ7: 82.6% VD24 X VD43 .67 .012 13. VQ35: 82.4% 14. VQ27: 77.8% 15. Vo34: 77.8% 16. Vo36: 776.5% 17. V043: 76.5% 18. V013: 76% 19. V023: 72.2% 20. VQ15: 72% 21. VQ17: 72% 22. VD21: 72% 23. V042: 7Q.6% 24. VD24: 65.2% 25. VQ19: 64% 26. VQ23: 64% 27. VD26: 61.1% 28. V039: 61.1% 198 Table IU. Significance Analysis of Questionnaire Variables for Wholesale Trade and Storage Sectors Important Counterpart Pair Spearman Correlation Significance 1. V025: 87% V/006 X V025 .65 .001 2. V034: 87% V/007 X V026 .61 .003 3. V030: 81.8% von X V030 .70 .001 4. V031: 78.3% V012 X V031 .70 .001 5. 1/043: 78.3% V020 X V039 .49 .02 6. V029: 76.2% 7. V006: 75.9% a. V026: 73.9% 9. V/040: 73.9% ID. V/011: 73.1% 11. Vo35: 72.7% 12. V/036: 72.7% 13. V/012: 71.4% 14. V027: 69.6% 15. V/028: 69.6% 16. V/039: 65.2% 17. V037: 63.6% 18. V020: 63% 19. V/007: 61.5% 20. V038: 60.9% 199 Table V. Significance Analysis of Questionnaire Variables for Infrastructure Sectors Important Counterpart Spearman Significance Pair Correlation 1. V/006 . 86.7% V/006 x V025 .9 .013 2. V/027 : 80% VO0S x V/027 .92 .028 3. V/OOB : 70% 4. V025 66.7% 5. V/007 : 63.6% 6. V/014 : 63.6% 7. V020 : 63.6% a. V/021 . 63.6% Table VI. Significance Analysis of Questionnaire Variables for Fina n c i a l and Administrative Services Important Counterpart Pair Spearman Significance Correlation 1. V0Q6 81.5% 2. V025' 78.3% 3. V024: 68.6% l*. VQ27: 67% 5. V043: 67% 6. V020 . 65.8% 7. V008: 63.1% a. V040 62.6% 9. V019 60.3% V006 x V025 V008 x V027 V024 x M0U3 .aa .89 .89 .001 .001 .001 200 Table VII. Significance Analysis of Questionnaire Variables f o r a l l Sectors Important Counterpart Spearman Significance Pair Correlation 1. VQ06: 84.2% V0Q6 X V025 .79 .001 2. V025: 62.6% V007 X V026 .79 .001 3. V026: 76.8% V008 X V027 .89 .001 4. V027: 72.5% V015 X V034 .68 .001 5. V008: 71.4% VQ20 X V039 .51 .001 6. V036: 70.7% 7. V028: 69.2% 8. V034: 67.3% 9. V020: 67.2% 10. V040: 67.1% 11. V007: 66.4% 12. V043: 62.8% 13. V029: 62.7% 14. V037: 60.5% 15. V015: 60.4% 16. V035: tO. 3% 17. VQ39: tO. 2% 201 Table V/III. Spearman Correlations of Counterpart Variables by Subpopulation 1. Primary Sectors Variable Pair Correlation Significance 2. 1. 2, 3. 4. 5. 6. Manufacturing Sectors VQQ6 x VD25 V015 x V034 VQ16 x VQ35 V019 x VD38 VQ2D x V039 VD22 x V041 .78 .77 .94 .97 .84 1.0 .04 .043 .002 .001 .018 .001 1. V006 X V025 .64 .001 2. V007 X V026 .70 .001 3. V008 X V027 .90 .001 4. V009 X V028 .30 3022 5. V010 X V029 .40 .002 6. V011 X VQ30 .82 .001 7. V012 X V031 .88 .001 a. V013 X V032 .80 .001 9. V014 X V033 .86 .001 10. V015 X V034 .43 .001 11. V016 X V035 .46 .001 12. V017 X V036 .46 .001 13. V018 X V037 .48 .001 14. V019 X V038 .67 .001 15. V020 X V039 .66 .001 16. V021 X V040 .53 .001 17. V022 X V041 .62 .001 18. V023 X V042 .38 .003 19. V024 X V043 .77 .001 Table VIII (continued) 3. R e t a i l Sectors 1. 2. 3. 4. 5. 6. 7. 8. 9. ID. 11. 12. 13. 14. 15. 16. 17. 18. 4. Wholesale Trade  and Storage 1. 2. 3. 4. 5. 6. 7. 8. 9. ID. 11. 12. 13. Variable Pair Correlation Significance V007 X VD26 .88 .001 VDD8 X VD27 .87 .001 VQD9 X V028 .77 .001 VOID X V029 .55 .035 VD11 X VD3D .70 .004 VQ12 X VD31 .92 .001 VD13 X VD32 .87 .DDI V014 X VD33 .95 .001 VD15 X V034 .83 .001 V016 X V035 .69 .005 VD17 X V036 .72 .004 VQ18 X V037 .57 .028 VD19 X VQ38 .65 .009 VD2D X VD39 .69 .005 VD21 X V040 .76 .002 V022 X V041 .60 .017 V023 X V042 .81 .001 V024 X V043 .67 .012 V006 X VD25 .65 .001 VD07 X VD26 .61 .003 V008 X V027 .87 .001 VD09 x?V028 .69 .001 VD1D X VD29 .62 .003 VQ11 X VD30 .70 .001 VD12 X VD31 .70 .001 VD13 X VD32 .67 .001 V014 X V033 .80 .001 VQ15 X V034 .70 .001 V016 X VD35 .78 .001 VD17 X VD36 .87 .001 VD18 X VD37 .85 .DDI Table VIII (continued) 14. 15. 16. 17. 5. Infrastructure  Sectors 1. 2. 3. 4. 5. 6. 6. Fin a n c i a l and  Administrative  Services 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Variable Pair Correlation Significance Vol9 x V038 .75 .001 V020 x V039 .49 .02 V022 x V041 .78 .001 V023 x V042 .90 .001 V006 X V025 .9 .013 V008 X V027 .92 .028 V011 X V030 .82 .045 Vol2 X V031 1.0 .001 V013 X V032 1.0 .001 V022 X V041 1.0 .001 V006 X VQ25 .88 .001 V007 X VQ26 .83 .001 V008 X V027 .89 .001 V009 X V028 .68 .001 VQ10 X V029 .68 .001 VQ11 X V030 .69 .001 V012 X V031 .84 . .001 V013 X V032 .74 .001 V014 X V033 .85 .001 V015 X V034 .71 .001 V016 X V035 .87 .001 V017 X V036 .84 .001 V018 X V037 .81 .001 V019 X V03B .83 .001 V020 X V039 .42 .001 V021 X V04Q .57 .001 V022 X V041 .85 .001 V023 X V042 .64 .001 V024 X V043 .89 .001 204 Table VIII (continued) 7. A H Sectors Variable Pair Correlation S i g n i f icai 1. VQQ6 X Vo25 .79 .001 2. V007 X V026 .79 .001 3. V0Q8 X V027 .89 .001 4. V009 X V028 .59 .001 5. V010 X V029 .66 .001 6. V011 X V030 .88 .001 7. V012 X V031 .89 .001 8. V013 X V032 .78 .001 9. V014 X V033 .82 .001 10. V015 X V034 .66 .001 11. V016 X V035 .74 .001 12. V017 X V036 .71 .001 13. V018 X V037 .76 .001 14. V019 X V038 .75 .001 15. V020 X V039 .51 .001 16. V021 X VQ40 .53 .001 17. V022 X V041 .77 .001 18. V023 X V042 .60 .001 19. V024 X V043 .80 .001 205 Table IX. Location Frequency Analysis of Primary Sectors. Location Absolute Frequency Relative Frequency(%) C. B. D. 6 42.9 V/ancouver: N.W. 2 14.3 V/ancouver: N.E. 1 7.1 Richmond 2 14.3 Surrey 1 7.1 North V/ancouver 1 7.1 West V/ancouver 1 7.1 Va l i d Observations: 14 Missing Observations : 0 Table X. Location Frequency Analysis of Manufacturing Sectors Location Absolute Frequency Relative Frequency (%) C.B.D. 18 21.2% V/ancouver: N.W. 10 11.8 V/ancouver: N.E. 15 17.6 V/ancouver: S.W. 1 1.2 Vancouver:S.E. 3 3.5 Richmond 9 10.6 Surrey 5 5.9 Coquitlam 2 2.4 New Westminster 7 8.2 Burnaby S. 10 11.8 North Vancouver 5 5.9 Valid Observations: 85 Missing Observations: 0 206 Table XI. Location Frequency Analysis of Wholesale Trade and Storage Location Absolute Frequency Relative Frequency (%) C.B.D. 13 43.3% V/ancouver: N.W. 6 20 Vancouver: N.E. 5 16.7 Vancouver: S.W. 2 6.7 Vancouver: S.E. 1 3.3 Neu Westminister 1 3.3 Burnaby S. 1 3.3 North Vancouver 1 3.3 Valid Observations: 30 Missing Observations: 0 Table XII. Location Frequency Analysis of R e t a i l Sectors Location Absolute Frequency Relative Frequency (%) C.B.D. 8 30.8% Vancouver: N.W. 9 34.6 Vancouver: N.E. 2 7.7 Surrey 1 3.8 Burnaby N. 2 7.7 Burnaby S. 3 11.5 West Vancouver 1 3.8 Valid Observations: 26 Missing Observations: 2 207 Table XIII. Location Frequency Analysis of Infrastructure Sectors Location Absolute Frequency Relative Frequency (%) C.B.D. 6 50 % V/ancouver: S.ltl. 1 B.3 Richmond 3 25 North V/ancouver 1 8.3 Ulest V/ancouver 1 a.3 Valid Observations: 12 Missing Observations: 0 Table XIV. Location Frequency Analysis of Fina n c i a l and Administrative Service Sectors. Location Absolute Frequency Relative Frequency (%) C.B.D. 67 51.5% Vancouver: N.W. 32 24.6 Vancouver: N.E. 10 7.7 Vancouver: 5.W. 3 2.3 Vancouver: S.E. 2 1.5 Richmond 1 Burnaby N. 1 .a Burnaby S. 5 3.8 Port Moody 1 .8 North Vancouver 4 3.1 West Vancouver 1 .8 U.B.C. 3 2.3 Valid Observations: 130 Missing Observations: 1 208 Table XV. Location Frequency Analysis of A l l Sectors Location Absolute Frequency Relative Frequency (%) C.B.D. 118 39.7% Vancouver: N.W. 59 19.9 Vancouver: N.E. 33 11.1 Vancouver: S.U. 7 2.4 Vancouver: S.E. 6 2.0 Richmond 15 5.1 Surrey 7 2.4 Coquitlam 2 .7 Neu Westminster 8 2.7 Burnaby N. 3 1.0 Burnaby S. 19 6.4 Port Moody 1 .3 North Vancouver 12 4.0 West Vancouver •4 1.3 U.B.C. 3 1.0 Valid Observations: 297 Missing Observations: 3 Figure I. Primary Sectors: Mean responses to questions 1 and 2 of the location survey questionnaire.  4 Level of importance* 3 2 1 i i i l i i i i i i i i i i i i I l 1 2 3 4 5 6 7 a 9 LO 11 12 13 14 15 16 17 ia 19 Location factors (as numberec in Figure 4.II) * 1. unimportant 2. f a i r l y important 3. important 4. absolutely e s s e n t i a l mean l e v e l mean l e v e l of question 1 per of question 2 per location factor, location f a c t o r . maximum number of cases 14. Figure I I . Manufacturing Sectors. Mean responses to questions 1 and 2 of the location survey questionnaire. Level of importance* a 10 11 12 13 14 15 16 17 18 19 *1. Location factors (as numbered i n Figure 4.II) unimportant 2. f a i r l y important 3. important 4. absolutely e s s e n t i a l mean l e v e l of question 1 per location factor. mam mean l e v e l of question 2 per location f a c t o r . maximum number of cases 85. Figure I I I . R e t a i l Trade: Mean responses to questions 1 and 2 of the lo c s t i o n survey questionnaire. It Level of importance 4! 3 4- 15 16 17 18 19 1 2 3 k 5 6 7 8 9 10 11 12 13 Ik Location factors (aa numbered i n Figure k.II) *1. unimportant 2. f a i r l y important 3. important k. abaolutely es s e n t i a l — _ mean l e v e l of question 1 per location f a c t o r , i mean l e v e l of question 2 per location f a c t o r . maximum number of cases 28. Figure IU. Wholesale trade and storage: Mean responses to questions 1 and 2 of the location survey questionnaire. 4 Level of * importance 3 2 1 *-> i l 1 1 1 1 • 1 1 1 1 . 1 1 1 1 1 1 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 Location factors (as numbered i n Figure 4.II) *1. unimportant 2. f a i r l y important 3. important 4. absolutely e s s e n t i a l . • m i r mean l e v e l of question 1 per location factor, i »i mean l e v e l of question 2 per location f a c t o r , maximum number of cases 3D. Figure V/. Infrastructure: Mean responses to questions 1 and 2 of the location survey questionnaire. Level of „ importance 3 2 1 : t-• ft • > i i 1 | 1 2 3 4 5 6 7 a 9 LO 11 12 13 14 15 16 17 18 19 Location factors (as numbered i n Figure *••!!) * 1. unimportant 2. f a i r l y important 3. important 4. absolutely e s s e n t i a l mean lev e l of question 1 per location f a c t o r . mean lev e l of question 2 per location f a c t o r . maximum number of caaes 12. 3 2 1 Figure VI. Financial and administrative services: Mean responses to questions 1 and 2 of the location survey questionnaire Level of t importance 3 3 5 5 6 7 a 9 I o i i 12 13 i*» 15 i s 17 ia 19 Location factors (as number i n Figure k.II) 1. unimportant 2. f a i r l y important 3. important U. absolutely e s s e n t i a l 1 mean l e v e l of question 1 per location f a c t o r . " mean l e v e l of question 2 per location f a c t o r . maximum number of cases 131. ro Figure V/II. A l l Sectors: Mean responses to questions 1 and 2 of the location survey questionnaire. Level of importance*! k 5 6 7 8 9 ID 11 12 13 Ik 15 Location factors (as numbered i n Figure 4.II) 16 17 18 19 1. unimportant 2. f a i r l y important 3. important k. absolutely es s e n t i a l mean l e v e l of question 1 per location f a c t o r . **•«•* mean l e v e l of question 2 per location f a c t o r . maximum number of cases 3D0. r\3 H 216 Figure VIII. Mean Responses on Questions 1 and 2 of the Location Survey Questionnaire by Subpopulation Question 1 Level of importance Question 2 Level of importance 1 2 3 4 5 6 7 8 9 ID 11 12 U 1415 16 17 IB 19 Location factors (numbered as i n Figure 4.II) 1 2 3 4 5 6 7 8 9 ID 1112.131?. B16 17 18 19 Location factors (numbered as i n Figure 4.II) • 1. unimportant; 2. f a i r l y important; 3. important; 4. absolutely e s s e n t i a l . primary sectors manufacturing sectors r e t a i l trade wholesale trade and storage infrastructure f i n a n c i a l and administrative services a l l sectors 217 APPENDIX IU 218 S t a t i s t i c s Used Di r e c t l y i n the Study 1. The Arithmetic Mean Nie, Bent and Hull atate that: ( (The arithmetic mean i s defined as the fum of the scores of a variable divided by the t o t a l number of v a l i d caaes for that variable. The formula f o r the arithmetic mean X i s 5 — Xj N where X^ equals the score of each case, and where N repreaents the t o t a l number of v a l i d cases. Ulhen the data i s given i n grouped form, which i s a common practice when a large number of cases i s involved, i t i s conventionally assumed for the purpose of computing the mean that the values within each category are concentrated at the mid-point of the i r respective Interval rather than evenly dist r i b u t e d throughout i t . The formula for computing the mean when grouped data i a involved then becomes * = ~ N where f^ equals the number of cases i n the i t h category, m^  equals the midpoint of the i t h category, and k equals the number of categories involved. In t h i s case N = h 2. The Standard Deviation and Variance Standard deviation i s the square root of the arithmetic mean of the squared deviations from the mean. In other words, the devi-ations of the scares from the mean are determined, each deviation i s squared and the arithmetic mean of these number i s calculated, then the square root of that mean i s taken. The formula for the standard 219 deviations i s N s = where X equals the mean of the o r i g i n a l scores. Several other form-ulas can be used when computing from ungrouped data. Tuo of these are s -s = N~ I N When computing from grouped data, i t i s assumed that each case u i t h i n a given i n t e r v a l 1 i s located at the midpoint d^ of that i n t e r v a l . If x^ i s set equal to d^ - X, x^ represents the deviation of the midpoint from the mean. The general formula then becomes N Variance i s equal to the square of standard deviation. Its formula therefore becomes Variance = s 2 = (^'"^ N and i t s computing formulas are found by simply removing the square-root sign from any of the computing formulas for standard deviation. 3. Chi-Square The Chi-square s t a t i s t i c given i n the table of FASTABS sub-program i s based upon Pearson's Chi-square test of association. It tests the independence (or lack of s t a t i s t i c a l association) betueen tuo variables. It does not measure the degree of association; i t only indicated the l i k e l i h o o d of having a d i s t r i b u t i o n as di f f e r e n t from s t a t i s t i c a l independence by chance alone as the observed d i s t r i b u t i o n . Its formula i s with (r - l ) ( c - 1) degrees of freedom, where f equals the ob-served frequency i n each c e l l , f 1 equals the expected frequency, c equals the number of columns i n the table, and r equals the number of rows i n the table. The expected frequency f 1 i s calculated as <i - (W) where c^ i s the frequency i n a respective column marginal, r^ i s the frequency i n a respective row marginal, and N stands for t o t a l number of v a l i d cases. The^probability figure given i n the table indicates on what l e v e l the difference between the observed d i s t r i b u t i o n and the ex-pected d i s t r i b u t i o n can be thought as s i g n i f i c a n t . It shows the probability of having as much difference between the sample d i s t r i b -ution and the expected d i s t r i b u t i o n i f i n fact the population d i s t r i b -ution were independent. For example, i f the probability associated with given value 2 of X i s *os, one can re j e c t the n u l l hypothesis that the two v a r i -ables are independent at the significance l e v e l of .05 or greater. Chi-square givea the most accurate r e s u l t when applied to tables with a large value of N, as chi-square d i s t r i b u t i o n tables are based on large sampling. Therefore, when the expected frequencies i n some c e l l s of the table run as low as 5, i t i s a good idea to make some correction for continuity, as the p o s s i b i l i t i s s of d i f f e r e n t values for chi-square are rather limi t e d when the c e l l frequencies are small integers. The correction which w i l l tend to make the value for chi-square somewhat smaller, consists of bringing a l l observed frequencies closer to the values of the expected frequencies by either adding or subtracting 0.5 i n each c e l l before computing chi-square. 2 2 1 Another way of getting around the problem of small frequencies i s combining two or more categories. I f most c e l l values are f a i r l y large and only a feui are as small as 5, i t i s not r e a l l y necessary to make any adjustment at a l l before computing chi-square. 4. Fisher's Exact Test Fisher's exact test i s used uiith 2 x 2 contingency tables to y i e l d exact, rather than approximate, p r o b a b i l i t i e s . I t i s most useful for small samples. Its formula i a p . R l I R 2 ! C l ' C 2 !  1 N!a!b!c!d! where R 1 equals the frequency t o t a l for row 1 , R 2 equals the t o t a l for row 2 , C 1 equals the t o t a l for column 1 , C 2 equals the t o t a l for column 2 ; a, b, c, and d are a l l the frequencies of c e l l s a, b, c, and d, respectively (assuming that the c e l l s are lette r e d as i n the accompanying diagram). a b c d C l C 2 If one finds the probability of the observed d i s t r i b u t i o n , as well as every other possible d i s t r i b u t i o n giving as much or more evidence of association, then one can test the hypothesis that the given d i s t r i b u t i o n i s purely a product of chance by taking the c a l c u l -ated sum of values (or pro b a b i l i t y ) as the significance l e v e l . Fisher's exact test i s e s s e n t i a l l y one t a i l e d . The value of the exact significance l e v e l (or probability) i s calculated by computing P^ for the given table and also for each possible table with a va r i a t i o n on the d i s t r i b u t i o n that i s more 222 extreme than that of the given table and then adding up a l l the values of P^. 5. Kendall's Tau B and Tau C Kendall's tau b and tau c both depend upon rank order, but tau c i s intended for tables uiith an unequal number of rous and columns. The value of tau b can vary from -1 to +1, depending on how much agreement exists between the ranks of the rows. In calculating tau b and tau c, count a l l passible number of pai r s , ( M O N ( N - 1), than p a r t i t i o n these into the following three groups: P = a l l pairs i n which the order on one variable i s the same as the order on the other - concordant pairs Q = a l l pairs i n which the order on one variable i a the opposite of the order on the other - discordant pairs T = a l l pairs i n which at least one vsriable shows a t i e Then Tau b = P - Q 1/2N(N - 1 ; -Tau b can be computed with adjustment for t i e s by the use of the formula Tau b = P - g 1/2NCN - 1) - T x 1/2N(N - 1) - T 2 where T^ equals the number of t i e s i n the f i r s t variable, and T^ equals the number of t i e s i n the second variable. Tau c has the formula Tau c = 2m(P - Q) N2(m - 1) where m represents either the number of rows or the number of columns i n the table, whichever i s smaller. Source: Nie, N . H., Bent, D.H., and H u l l , C.H., S t a t i s t i c a l Package for the S o c i a l Sciences (New York: McGraw-Hill Book Company, 197Q) pp. 272-275, 277. 223 6. Spearman Rank-Order Correlation C o e f f i c i e n t Spearman's rank co r r e l a t i o n c o e f f i c i e n t i s defined by: rs = 1 - fc*ffl <** where: = rank d i f f e r e n t i a l f o r the i t h pair of observations n = number of pairs of observations. Source: Harnett, D.L., Introduction to S t a t i s t i c a l Methods, (London: Addison Wesley Publishing Co., 1970). 224 APPENDIX V 225 THE DATA The source of the data u t i l i z e d i n t h i s study was a location questionnaire survey conducted by the V/MIS i n the F a l l of 1972. 3600 firms in the G.V/.R.D. mere contacted. A copy of the data on computer cards and relevant computer output i s provided to the Urban Land Economics Department in the Faculty of Commerce and Business Administration. The study consists of 300 usable respondents, coded as follows: Each questionnaire i s defined over an BO column f i e l d with format: (F6.0, IX, F3.0, IX, Fk.l, Fk.Q, IX, F2.0, 38F1.0, 9X, F5.2, 6X) Columns 1 - 6 : I d e n t i f i c a t i o n Number. This refers to the pa r t i c u l a r firm which made the response. Column 7: Blank, Columns 8 - 1 0 : SIC Number , Column 11: Blank Columns 12 - 15: Sector. This refers to the economic sector as coded i n the l/MIS. Columns 16 - 19: Number of Employees Column 20: Blank Column 21 - 22: Location Code. Please refer to Figure 5.1. Columns 23-60: Questionnaire V/ariables. 1/006 to V043 Columns 61 - 69: Blank Columns 70 - Ik: Undefined Variable. This refers to a variable which was keypunched but subsequently considered to be extraneous. Columns 75 - 80: Blank. 

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