Firm relocations in the Netherlands: Why do firms move, and where do they go?
AbstractThis 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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32147.
Date of creation: 2011
Date of revision:
firm relocation; mobility; location choices; nested logit;
Other versions of this item:
- Kristin Kronenberg, 2013. "Firm relocations in the Netherlands: Why do firms move, and where do they go?," Papers in Regional Science, Wiley Blackwell, vol. 92(4), pages 691-713, November.
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-21 (All new papers)
- NEP-BEC-2011-07-21 (Business Economics)
- NEP-GEO-2011-07-21 (Economic Geography)
- NEP-LAB-2011-07-21 (Labour Economics)
- NEP-SBM-2011-07-21 (Small Business Management)
- NEP-URE-2011-07-21 (Urban & Real Estate Economics)
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