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The Geographical Scope of Industrial Location Determinants: An Alternative Approach

  • Oscar Martinez Ibañez
  • Miguel Manjón Antolín
  • Josep-Maria Arauzo-Carod

This paper considers the estimation of the geographical scope of industrial location determinants. While previous studies impose strong assumptions on the weighting scheme of the spatial neighbour matrix, we propose a exible parametrisation that allows for di fferent (distance-based) de finitions of neighbourhood and di fferent weights to the neighbours. In particular, we estimate how far can reach indirect marginal e ffects and discuss how to report them. We also show that the use of smooth transition functions provides tools for policy analysis that are not available in the traditional threshold modelling. Keywords: count data models, industrial location, smooth transition functions, threshold models. JEL-Codes: C25, C52, R11, R30.

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File URL: http://hdl.handle.net/10.1111/10.1111/tesg.2013.104.issue-2
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Article provided by Royal Dutch Geographical Society KNAG in its journal Tijdschrift voor economische en sociale geografie.

Volume (Year): 104 (2013)
Issue (Month): 2 (04)
Pages: 194-214

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Handle: RePEc:bla:tvecsg:v:104:y:2013:i:2:p:194-214
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  1. Paulo Guimarães & Octávio Figueirdo & Douglas Woodward, 2003. "A Tractable Approach to the Firm Location Decision Problem," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 201-204, February.
  2. Yoonsoo Lee, 2004. "Geographic redistribution of U.S. manufacturing and the role of state development policy," Working Paper 0415, Federal Reserve Bank of Cleveland.
  3. Arauzo Carod, Josep Maria & Liviano Solís, Daniel & Manjón Antolín, Miguel C., 2008. "Empirical studies in industrial location: an assessment of their methods and results," Working Papers 2072/9257, Universitat Rovira i Virgili, Department of Economics.
  4. Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2011. "Locations and relocations: determinants, modelling, and interrelations," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 131-146, August.
  5. Anthony Briant & Pierre-Philippe Combes & Miren Lafourcade, 2008. "Dots To Boxes: Do The Size And Shape Of Spatial Units Jeopardize Economic Geography Estimations?," PSE Working Papers halshs-00349294, HAL.
  6. Lambert, Dayton M. & McNamara, Kevin T. & Garrett, Megan I., 2006. "An Application of Spatial Poisson Models to Manufacturing Investment Location Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(01), April.
  7. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
  8. Arauzo Carod, Josep Maria & Manjón Antolín, Miguel C., 2009. "(Optimal) Spatial Aggregation in the Determinants of Industrial Location," Working Papers 2072/42866, Universitat Rovira i Virgili, Department of Economics.
  9. Granger, Clive W. J. & Terasvirta, Timo, 1993. "Modelling Non-Linear Economic Relationships," OUP Catalogue, Oxford University Press, number 9780198773207, May.
  10. Pagan,Adrian & Ullah,Aman, 1999. "Nonparametric Econometrics," Cambridge Books, Cambridge University Press, number 9780521355643, june. pag.
  11. Woodward, Douglas & Figueiredo, Octavio & Guimaraes, Paulo, 2006. "Beyond the Silicon Valley: University R&D and high-technology location," Journal of Urban Economics, Elsevier, vol. 60(1), pages 15-32, July.
  12. Blonigen, Bruce A. & Davies, Ronald B. & Waddell, Glen R. & Naughton, Helen T., 2007. "FDI in space: Spatial autoregressive relationships in foreign direct investment," European Economic Review, Elsevier, vol. 51(5), pages 1303-1325, July.
  13. Josep-Maria Arauzo-Carod, 2008. "Industrial Location At A Local Level: Comments On The Territorial Level Of The Analysis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(2), pages 193-208, 04.
  14. Göran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
  15. Lambert, Dayton M. & McNamara, Kevin T. & Garrett, Megan I., 2006. "An Application of Spatial Poisson Models to Manufacturing Investment Location Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(01), pages 105-121, April.
  16. J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar Publishing.
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