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Where do manufacturing firms locate their headquarters?

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Author Info
Henderson, J. Vernon
Ono, Yukako

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Abstract

Firms often separate headquarters' (HQ) functions physically from their production facilities and construct stand-alone HQs. By locating its HQ in a large, service oriented metro area away from its production facilities, a firm may be better able to outsource service functions in that local metro market and also to gather information about market conditions for their products. However if the firm locates the HQ away from its production activity, the coordination costs in managing plant activities are increased. In this paper, we empirically analyze the trade-off between these two considerations.

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File URL: http://www.sciencedirect.com/science/article/B6WMG-4NB2WFF-1/2/e75059a0f7de9606a13509bdc389f00d
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Publisher Info
Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 63 (2008)
Issue (Month): 2 (March)
Pages: 431-450
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Handle: RePEc:eee:juecon:v:63:y:2008:i:2:p:431-450

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Web page: http://www.elsevier.com/locate/inca/622905

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Related research
Keywords: Headquarters Coordination Location decision Manufacturing;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 56, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
    Other versions:
  2. Patrick Bayer & Robert McMillan & Kim Rueben, 2004. "Residential Segregation in General Equilibrium," Working Papers 885, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  3. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Oliver Falck & Michael Fritsch & Stephan Heblich, 2009. "Bohemians, Human Capital, and Regional Economic Growth," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  2. Strauss-Kahn, Vanessa & Vives, Xavier, 2006. "Why and where do headquarters move?," IESE Research Papers D/650, IESE Business School.
    Other versions:
  3. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens III, 2005. "Firm Fragmentation and Urban Patterns," NBER Working Papers 11839, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," NBER Working Papers 14806, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Oliver Falck & Michael Fritsch & Stephan Heblich, 2009. "Bohemians, human capital and regional economic growth," Working Papers 2009/12, Institut d'Economia de Barcelona (IEB). [Downloadable!]
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