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Exploring Firm Location Beyond Simple Growth Models: A Double Hurdle Application

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  • Davis Reum, Alison
  • Harris, Thomas R.

Abstract

Firm location decisions are typically influenced by economic, demographic, environmental, and social factors. This research extends the current literature by investigating the factors thought to influence the total number of manufacturing firms within a given region. Given the large number of regions without any manufacturing firms, a double hurdle model is employed to account for excess zeros. The results suggest that there are certain industry input variables, such as population and education that make a region an attractive or unattractive location for a particular manufacturing firm.

Suggested Citation

  • Davis Reum, Alison & Harris, Thomas R., 2006. "Exploring Firm Location Beyond Simple Growth Models: A Double Hurdle Application," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1), pages 1-23.
    • Handle: RePEc:ags:jrapmc:132313
    DOI: 10.22004/ag.econ.132313
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    References listed on IDEAS

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    Cited by:

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    2. Van Sandt, Anders & Carpenter, Craig Wesley, "undated". "A Note on the Locational Determinants of the Agricultural Supply Chain," 2020 Annual Meeting, February 1-4, 2020, Louisville, Kentucky 302306, Southern Agricultural Economics Association.
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    4. Tessa Conroy & Steven Deller & Alexandra Tsvetkova, 2017. "Interstate Relocation Of Manufacturers And Business Climate," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 29(1), pages 18-45, March.
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