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Location of headquarter growth during the 90s

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  • Thomas H. Klier

Abstract

This paper examines the location of headquarter growth of large public companies during the 1990s. Headquarters continue to be attracted by large metropolitan areas. Yet, among that group they continue to disperse into the medium-sized centers. The model results suggest that headquarter growth is elastic with respect to population growth. In addition, average January temperature emerges as a predictor of headquarter growth. Furthermore, the paper identifies 6 different categories of gross flows underlying the net change of headquarters observed during the 90s. There is strong variation among the 50 largest metro areas in terms of the composition of these gross flows. On average, entry and exit represent over 2/3 of all gross flow activity. Including information on the composition of gross flows noticeably improves the formal model.

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Bibliographic Info

Paper provided by Federal Reserve Bank of Chicago in its series Working Paper Series with number WP-02-19.

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Date of creation: 2002
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Handle: RePEc:fip:fedhwp:wp-02-19

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Keywords: Corporations - Headquarters ; Population ; Metropolitan areas - Statistics;

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