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Where Do Manufacturing Firms Locate Their Headquarters?

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Author Info
J. Vernon Henderson
Yukako Ono

Additional information is available for the following registered author(s):

Abstract

Firms’ headquarters [HQ] support their production activity, by gathering information and outsourcing business services, as well as, managing, evaluating, and coordinating internal firm activities. In search of locations for these functions, firms often separate the HQ function 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 out-source 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, that increases the coordination costs in managing plant activities. In this paper we empirically analyze the trade-off of these two considerations.

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File URL: http://www.ces.census.gov/index.php/ces/cespapers?down_key=101727
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 05-17.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 29 pages
Date of creation: Oct 2005
Date of revision:
Handle: RePEc:cen:wpaper:05-17

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Web page: http://www.ces.census.gov

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Related research
Keywords: headquarters; coordination; location decision; manufacturing;

Other versions of this item:

Find related papers by JEL classification:
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
R0 - Urban, Rural, and Regional Economics - - General
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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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. 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:
  2. 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:
  3. 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)
  4. 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!]
  5. Strauss-Kahn, Vanessa & Vives, Xavier, 2006. "Why and where do headquarters move?," IESE Research Papers D/650, IESE Business School.
    Other versions:
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