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Location Determinants of New Firms: Does Skill Level of Human Capital Really Matter?

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  • Josep-Maria Arauzo-Carod

Abstract

This paper is about the role played by stock of human capital on location decisions of new manufacturing plants. We analyse the effect of several skill levels (from basic school to PhD) on decisions about the location of plants in various industries and, therefore, of different technological levels. We also test whether spatial aggregation level biases the results and determine the most appropriate areas to be considered in analyses of these phenomena. Our main statistical source is the Register of Manufacturing Establishments of Catalonia (REIC), which has plant-level microdata on the locations of new manufacturing plants. Keywords: agglomeration economies, industrial location, human capital, count-data models, spatial econometrics.

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Bibliographic Info

Article provided by Gatton College of Business and Economics, University of Kentucky in its journal Growth and Change.

Volume (Year): 44 (2013)
Issue (Month): 1 (03)
Pages: 118-148

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Handle: RePEc:bla:growch:v:44:y:2013:i:1:p:118-148

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References

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  1. Holl, Adelheid, 2004. "Manufacturing location and impacts of road transport infrastructure: empirical evidence from Spain," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 341-363, May.
  2. Josep Maria Arauzo Carod, . "Determinants of industrial location. An application for Catalan municipalities," Studies on the Spanish Economy 138, FEDEA.
  3. Todd Gabe, 2003. "Local Industry Agglomeration and New Business Activity," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 34(1), pages 17-39.
  4. Josep-Maria Arauzo-Carod & Elisabet Viladecans-Marsal, 2009. "Industrial Location at the Intra-Metropolitan Level: The Role of Agglomeration Economies," Regional Studies, Taylor & Francis Journals, vol. 43(4), pages 545-558.
  5. Josep Maria Arauzo Carod & Miguel C. ManjÛn AntolÌn, 2004. "Firm Size and Geographical Aggregation: An Empirical Appraisal in Industrial Location," Small Business Economics, Springer, vol. 22(3_4), pages 299-312, 04.
  6. Arauzo Carod, Josep Maria & Liviano Solís, Daniel & Manjón Antolín, Miguel C., 2008. "Empirical studies in industrial location: an assessment of their methods and results," Working Papers 2072/9257, Universitat Rovira i Virgili, Department of Economics.
  7. Shaoming Cheng & Roger Stough, 2006. "Location decisions of Japanese new manufacturing plants in China: a discrete-choice analysis," The Annals of Regional Science, Springer, vol. 40(2), pages 369-387, June.
  8. Arauzo Carod, Josep Maria & Manjón Antolín, Miguel C., 2009. "(Optimal) Spatial Aggregation in the Determinants of Industrial Location," Working Papers 2072/42866, Universitat Rovira i Virgili, Department of Economics.
  9. Smith Jr. , Donald F. & Florida Richard, 1994. "Agglomeration and Industrial Location: An Econometric Analysis of Japanese-Affiliated Manufacturing Establishments in Automotive-Related Industries," Journal of Urban Economics, Elsevier, vol. 36(1), pages 23-41, July.
  10. Cletus C. Coughlin & Eran Segev, 2000. "Location Determinants of New Foreign-Owned Manufacturing Plants," Journal of Regional Science, Wiley Blackwell, vol. 40(2), pages 323-351.
  11. Schmenner, Roger W. & Huber, Joel C. & Cook, Randall L., 1987. "Geographic differences and the location of new manufacturing facilities," Journal of Urban Economics, Elsevier, vol. 21(1), pages 83-104, January.
  12. Adelheid Holl, 2004. "Start-ups and relocations: Manufacturing plant location in Portugal," Economics of Governance, Springer, vol. 83(4), pages 649-668, October.
  13. Guimaraes, Paulo & Figueiredo, Octavio & Woodward, Douglas, 2000. "Agglomeration and the Location of Foreign Direct Investment in Portugal," Journal of Urban Economics, Elsevier, vol. 47(1), pages 115-135, January.
  14. Josep-Maria Arauzo-Carod, 2008. "Industrial Location At A Local Level: Comments On The Territorial Level Of The Analysis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(2), pages 193-208, 04.
  15. Adelheid Holl, 2004. "Transport Infrastructure, Agglomeration Economies, and Firm Birth: Empirical Evidence from Portugal," Journal of Regional Science, Wiley Blackwell, vol. 44(4), pages 693-712.
  16. Todd M. Gabe & Kathleen P. Bell, 2004. "Tradeoffs between Local Taxes and Government Spending as Determinants of Business Location," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 21-41.
  17. Audretsch, David B. & Lehmann, Erik E., 2005. "Does the Knowledge Spillover Theory of Entrepreneurship hold for regions?," Research Policy, Elsevier, vol. 34(8), pages 1191-1202, October.
  18. Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2011. "Locations and relocations: determinants, modelling, and interrelations," The Annals of Regional Science, Springer, vol. 47(1), pages 131-146, August.
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Cited by:
  1. Gehringer, Agnieszka & Krenz, Astrid, 2014. "European market integration and the determinants of firm localization: The case of Poland," Center for European, Governance and Economic Development Research Discussion Papers 190, University of Goettingen, Department of Economics.

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