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Determinants of industrial location. An application for Catalan municipalities

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  • Josep Maria Arauzo Carod

Abstract

The aim of this article is to show the main determinants of industrial location processes. To better illustrate phenomena such as agglomeration economies, which are normally studied at the regional level, we use local data. We use the Poisson model to identify the location patterns of firms. Our main statistical source is the Spanish Industrial Establishments Register, which has plant-level microdata on location of new industrial establishments. Our results show that the characteristics of a municipality strongly affect the location decisions of industrial establishments and that these decisions also depend on the sector in which the firm is located and the size of the firm. Copyright RSAI 2005.

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Paper provided by FEDEA in its series Studies on the Spanish Economy with number 138.

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Handle: RePEc:fda:fdaeee:138

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  1. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-83, November.
  2. Gilles Duranton & Diego Puga, 2000. "Nursery Cities: Urban diversity, process innovation, and the life-cycle of products," Working Papers dpuga-00-01, University of Toronto, Department of Economics.
  3. 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.
  4. Didier Baudewyns, 1999. "La localisation intra-urbaine des firmes: une estimation logit multinomiale," ULB Institutional Repository 2013/9157, ULB -- Universite Libre de Bruxelles.
  5. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-49, August.
  6. Stam, Erik & Schutjens, Veronique, 2000. "Locational Behaviour Of Young Firms: A Life Course Perspective," ERSA conference papers ersa00p56, European Regional Science Association.
  7. Meester, Wilhelm J., 2000. "Locational Self-Preference Of Firms," ERSA conference papers ersa00p421, European Regional Science Association.
  8. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October.
  9. Paulo Guimaraes & Octavio Figueiredo & Douglas Woodward, 2000. "A tractable approach to the firm location decision problem," NIMA Working Papers 2, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
  10. Costa-Campi, M. Teresa & Viladecans-Marsal, Elisabet & Segarra-Blasco, Agusti, 2000. "Business Dynamics And Territorial Flexibility," ERSA conference papers ersa00p164, European Regional Science Association.
  11. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
  12. Figueiredo, Octavio & Guimaraes, Paulo, 1999. "Start-Ups Domestic Location Decisions, and the Entrepreneur's Geographical Origin," ERSA conference papers ersa99pa045, European Regional Science Association.
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Citations

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Cited by:
  1. Liviano Solís, Daniel & Arauzo Carod, Josep Maria, 2011. "Industrial Location and Space: New Insights," Working Papers 2072/152137, Universitat Rovira i Virgili, Department of Economics.
  2. Arauzo Carod, Josep Maria, 2011. "Location Determinants of New Firms: Does Skill Level of Human Capital Really Matter?," Working Papers 2072/152136, Universitat Rovira i Virgili, Department of Economics.
  3. 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.
  4. Josep Maria Arauzo-Carod & Elisabet Viladecans-Marsal, 2006. "Industrial Location At the Intra-Metropolitan Level: A Negative Binomial Approach," ERSA conference papers ersa06p129, European Regional Science Association.
  5. Nadia Rocha, 2008. "Determinants of Firm Location: Empirical Evidence for France," IHEID Working Papers 08-2008, Economics Section, The Graduate Institute of International Studies.
  6. Raimund Krumm & Harald Strotmann, 2010. "The Impact of Regional Supply and Demand Conditions on Job Creation and Destruction," IAW Discussion Papers 61, Institut für Angewandte Wirtschaftsforschung (IAW).
  7. Jordi Jofre-Monseny & Raquel Marín-López & Elisabet Viladecans-Marsal, 2012. "What underlies localization and urbanization economies? Evidence from the location of new firms," Working Papers XREAP2012-08, Xarxa de Referència en Economia Aplicada (XREAP), revised May 2012.
  8. Brown, Jason & Lambert, Dayton, 2014. "Location decisions of natural gas extraction establishments: a smooth transition count model approach," Research Working Paper RWP 14-5, Federal Reserve Bank of Kansas City.
  9. Roberto Basile & Luigi Benfratello & Davide Castellani, 2011. "Spatial clustering and nonlinearities in the location of multinational firms," Quaderni del Dipartimento di Economia, Finanza e Statistica 90/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  10. Miguel C. Manjon-Antolin & Josep Maria Arauzo-Carod, 2006. "Locations and Relocations: Modelling, Determinants, and Interrelations," ERSA conference papers ersa06p33, European Regional Science Association.
  11. Elisabet Viladecans-Marsal & Josep-Maria Arauzo-Carod, 2009. "Can a knowledge-based cluster be created? The case of the Barcelona 22@district," Working Papers 2009/38, Institut d'Economia de Barcelona (IEB).
  12. Roberto Basile & Luigi Benfratello & Davide Castellani, 2012. "Geoadditive models for regional count data: an application to industrial location," ERSA conference papers ersa12p83, European Regional Science Association.
  13. Dayton M. Lambert & Jason P. Brown & Raymond J.G.M. Florax, 2010. "A Two-Step Estimator For A Spatial Lag Model Of Counts: Theory, Small Sample Performance And An Application," Working Papers 10-5, Purdue University, College of Agriculture, Department of Agricultural Economics.
  14. Josep Maria Arauzo-Carod & Elisabet Viladecans-Marsal, 2006. "Industrial location at the intra-metropolitan level: The role of agglomeration economies," Working Papers 2006/5, Institut d'Economia de Barcelona (IEB).
  15. Angel Alañón & Josep Maria Arauzo Carod, . "Accessibility and Industrial Location. Some Evidence from Spain," Studies on the Spanish Economy 214, FEDEA.
  16. Roberto Basile & Luigi Benfratello & Davide Castellani, 2010. "Location Determinants of Greenfield Foreign Investments in the Enlarged Europe: Evidence from a Spatial Autoregressive Negative Binomial Additive Model," Working papers 10, Former Department of Economics and Public Finance "G. Prato", University of Torino.

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