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Industrial Location At the Intra-Metropolitan Level: A Negative Binomial Approach

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Author Info
Josep Maria Arauzo-Carod ()
Elisabet Viladecans-Marsal ()

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Abstract

The objective of this paper is to analyse the incidence of agglomeration economies on the new firms’ location decisions inside metropolitan areas. Following the literature we consider that agglomeration economies are related to the concentration of an industry (location economies) and/or the size of the city itself (urbanisation economies). We assume that those economies differ according the technological level of firms. So we use a sample of new firms belonging to high, intermediate and low technology levels. Our results confirm those sectoral differences and show some interesting location patterns of manufacturing firms Taking into account the renovated debate about the importance of the geography and distance in the location of economic activity, we introduce in the estimation the effect of the central city size as determinant for the location of new firms in the rest of the metropolitan area. This allows us to analyse if a suburbanisation effect exists and if that effect is the same depending on the industry and the central city size of the metropolitan area. Our main statistical source is the REI (Spanish Industrial Establishments Register), which has plant-level microdata for the creation and location of new industrial firms.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa06p129.

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Date of creation: Aug 2006
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Handle: RePEc:wiw:wiwrsa:ersa06p129

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  1. 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. [Downloadable!] (restricted)
  2. 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!]
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  3. Josep Maria Arauzo Carod, 2005. "Determinants of industrial location: An application for Catalan municipalities," Papers in Regional Science, Blackwell Publishing, vol. 84(1), pages 105-120, 03. [Downloadable!] (restricted)
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  4. 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.
  5. Figueiredo, Octavio & Guimaraes, Paulo & Woodward, Douglas, 2002. "Home-field advantage: location decisions of Portuguese entrepreneurs," Journal of Urban Economics, Elsevier, vol. 52(2), pages 341-361, September. [Downloadable!] (restricted)
  6. Erickson, Rodney A. & Wasylenko, Michael, 1980. "Firm relocation and site selection in suburban municipalities," Journal of Urban Economics, Elsevier, vol. 8(1), pages 69-85, July. [Downloadable!] (restricted)
  7. Cletus C. Coughlin & Eran Segev, 2000. "Location Determinants of New Foreign-Owned Manufacturing Plants," Journal of Regional Science, Blackwell Publishing, vol. 40(2), pages 323-351. [Downloadable!] (restricted)
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  8. Guimaraes, Paulo & Figueiredo, Octávio & Woodward, Douglas, 2002. "Modeling industrial location decisions in U.S. counties," ERSA conference papers ersa02p060, European Regional Science Association. [Downloadable!]
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  9. Josep Maria Arauzo Carod & Miguel C. ManjÛn AntolÌn, 2004. "Firm Size and Geographical Aggregation: An Empirical Appraisal in Industrial Location," Small Business Economics, Springer, vol. 22(3_4), pages 299-312, 04. [Downloadable!]
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  10. Stuart S. Rosenthal & William C. Strange, 2005. "The geography of entrepreneurship in the New York metropolitan area," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 29-53. [Downloadable!]
  11. Holl, Adelheid, 2004. "Manufacturing location and impacts of road transport infrastructure: empirical evidence from Spain," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 341-363, May. [Downloadable!] (restricted)
  12. Ángel Alañón & Rafael Myro, . "Does neighboring "industrial atmosphere" matter in industrial location?. Empirical evidence from Spanish municipalities," Studies on the Spanish Economy 199, FEDEA. [Downloadable!]
  13. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier. [Downloadable!] (restricted)
  14. David B. Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor and Francis Journals, vol. 36(2), pages 113-124, April. [Downloadable!] (restricted)
  15. Deitz, Richard, 1998. "A Joint Model of Residential and Employment Location in Urban Areas," Journal of Urban Economics, Elsevier, vol. 44(2), pages 197-215, September. [Downloadable!] (restricted)
  16. Elisabet Viladecans-Marsal, 2004. "Agglomeration economies and industrial location: city-level evidence," Journal of Economic Geography, Oxford University Press, vol. 4(5), pages 565-582, November. [Downloadable!] (restricted)
  17. Albert Solé-Ollé & Elisabet Viladecans-Marsal, 2004. "Central Cities as Engines of Metropolitan Area Growth," Journal of Regional Science, Blackwell Publishing, vol. 44(2), pages 321-350. [Downloadable!] (restricted)
  18. Hans Ouwersloot & Piet Rietveld, 2000. "The Geography of R&D; Tobit Analysis and Bayesian Approach to Mapping R&D Activities for The Netherlands," Tinbergen Institute Discussion Papers 00-043/3, Tinbergen Institute. [Downloadable!]
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