Exploring Firm Location Beyond Simple Growth Models: A Double Hurdle Application
Firm location decisions are typically influenced by economic, demographic, environmental, and social factors. This research extends the current literature by investigating the factors thought to influence the total number of manufacturing firms within a given region. Given the large number of regions without any manufacturing firms, a double hurdle model is employed to account for excess zeros. The results suggest that there are certain industry input variables, such as population and education that make a region an attractive or unattractive location for a particular manufacturing firm.
Volume (Year): 36 (2006)
Issue (Month): 1 ()
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- Todd M. Gabe & Kathleen P. Bell, 2004. "Tradeoffs between Local Taxes and Government Spending as Determinants of Business Location," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 21-41.
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