An Application of Von Thunen Model of Location Theory in South Africa: An Unemployment Mitigation Tool

Abstract

The government in South Africa seeks to achieve an inclusive economic growth and eradicate socio-economic inequality. However, it has been almost 30 years since the transition to democracy in South Africa and unemployment rate is still high. There are a number of unemployment alleviation initiatives in place; however, such initiatives are seemingly not producing adequate jobs. The paper aims to apply von Thunen model of Location Theory as unemployment mitigation tool in South Africa. Von Thunen model is a land use theory that seeks to predict optimal location choice for agricultural farms. The paper adopted qualitative research approach and found that, assumptions in von Thunen’s model of Location Theory is not applicable in South Arica and the world as a whole. However, the paper argues that the four concentric rings in von Thunen model can contribute to job creation in South Africa.