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The influence of transport on industrial location choice: a stated preference experiment

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  • Leitham, Scott
  • McQuaid, Ronald W.
  • D. Nelson, John

Abstract

Stated preference experiments are introduced and applied to an investigation of the influence of road transport and other factors on industrial location in terms of the ex ante decision making process. The experiments, based upon repeated hypothetical discrete choices between pairs of locations, involved respondents from firms making trade-offs between the various characteristics in a fractional factorial, orthogonal survey design. In each defined case, a clear hierarchy of location factors emerged. These were found to vary according to the origin of the firm - classified as local relocations, foreign inward investors, and branch plants sourced from national bases. The importance of road links to location choice varied considerably between these groups with the latter rating motorway links the highest of any of the groups of firms. In contrast, overseas sourced branch firms found road links largely unimportant, being outweighed primarily by considerations of workforce and premises. Local relocations fell into two distinct groups with respect to the importance attached to road links (between relatively important and non-important), whilst considering the other factors similarly. Good public transport provision emerged as a statistically significant factor only in certain scenarios. Finally, the paper discusses implications for location choice models in transport and further research.

Suggested Citation

  • Leitham, Scott & McQuaid, Ronald W. & D. Nelson, John, 2000. "The influence of transport on industrial location choice: a stated preference experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(7), pages 515-535, September.
  • Handle: RePEc:eee:transa:v:34:y:2000:i:7:p:515-535
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    References listed on IDEAS

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    1. Rietveld, Piet, 1994. "Spatial economic impacts of transport infrastructure supply," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(4), pages 329-341, July.
    2. Bunch, David S. & Bradley, Mark & Golob, Thomas F. & Kitamura, Ryuichi & Occhiuzzo, Gareth P., 1993. "Demand for clean-fuel vehicles in California: A discrete-choice stated preference pilot project," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(3), pages 237-253, May.
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    6. Button, Kenneth J. & Lietham, Scott & McQuaid, Ronald W. & Nelson, John D., 1995. "Transport and Industrial and Commercial Location," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 29(2), pages 189-206, May.
    7. Berechman, Joseph, 1994. "Urban and regional economic impacts of transportation investment: A critical assessment and proposed methodology," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(4), pages 351-362, July.
    8. Ronald McQuaid & Scott Leitham & John Nelson, 1996. "Accessibility and Location Decisions in a Peripheral Region of Europe: A Logit Analysis," Regional Studies, Taylor & Francis Journals, vol. 30(6), pages 579-588.
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    Cited by:

    1. Galloway, David & Newman, Peter, 2014. "How to design a sustainable heavy industrial estate," Renewable Energy, Elsevier, vol. 67(C), pages 46-52.
    2. van den Heuvel, Frank P. & Rivera, Liliana & van Donselaar, Karel H. & de Jong, Ad & Sheffi, Yossi & de Langen, Peter W. & Fransoo, Jan C., 2014. "Relationship between freight accessibility and logistics employment in US counties," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 91-105.
    3. Mc Quaid, Ronald & Bergmann, Ariel, 2008. "Employer recruitment preferences and discrimination: a stated preference experiment," MPRA Paper 30801, University Library of Munich, Germany.
    4. Hong, Junjie, 2007. "Transport and the location of foreign logistics firms: The Chinese experience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 597-609, July.
    5. Bliemer, Michiel C.J. & Rose, John M., 2011. "Experimental design influences on stated choice outputs: An empirical study in air travel choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 63-79, January.
    6. Michiel de Bok, 2004. "Explaining the location decision of moving firms using their mobility profile and the accessibility of locations," ERSA conference papers ersa04p338, European Regional Science Association.
    7. Anthony Chin & Hong Junjie, 2005. "The Location Decisions of Foreign Logistics Firms in China : Does Transport Network Capacity Matter?," Trade Working Papers 22568, East Asian Bureau of Economic Research.
    8. repec:eee:touman:v:59:y:2017:i:c:p:404-412 is not listed on IDEAS
    9. VERHETSEL, Ann & KESSELS, Roselinde & BLOMME, Nele & CANT, Jeroen & GOOS, Peter, 2013. "Location of logistics companies: A stated preference study to disentangle the impact of accessibility," Working Papers 2013024, University of Antwerp, Faculty of Applied Economics.

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