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Firm relocations in the Netherlands: Why do firms move, and where do they go?

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  • Kronenberg, Kristin

Abstract

This study analyzes determinants of business relocation and identifies regional characteristics which attract relocating firms. Results indicate that the relocation decisions of firms are sector-dependent, and the migratory behavior of firms in knowledge-intensive sectors notably differs from that in less knowledge-intensive sectors. Generally, its age and size keep a firm from relocating, whereas firms paying high average salaries have a higher probability to move out of their present location. Relocating firms are generally attracted by densely populated municipalities with high wage levels, and predominantly service firms are drawn to municipalities which are specialized in the firm’s own sector and appeal to individuals, while they avoid moving to municipalities in which only few sectors are present. Sector-specific wages may either attract, or deter firms, suggesting that this variable may capture both the cost and the quality of the locally available workforce.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32147.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:32147

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Keywords: firm relocation; mobility; location choices; nested logit;

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References

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Cited by:
  1. Kronenberg, Kristin & Volgmann, Kati, 2013. "Knowledge-intensive employment growth in the Dutch Randstad and the German Rhine-Ruhr area: the impact of centrality and peripherality," MPRA Paper 44760, University Library of Munich, Germany.
  2. Kristin Kronenberg & Kati Volgmann, 2014. "Knowledge-intensive employment change in the Dutch Randstad and the German Rhine-Ruhr area: comparable patterns of growth and decline in two metropolitan regions?," Jahrbuch für Regionalwissenschaft, Springer, vol. 34(1), pages 39-60, February.

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