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Agglomeration economies, accessibility, and the spatial choice behavior of relocating firms

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  • de Bok, Michael

    () (Significance b.v.)

  • van Oort, Frank

    (Utrecht University)

Abstract

A growing body of empirical urban economic studies suggests that agglomeration and accessibility externalities are important sources of the uneven distribution of economic activities across cities and regions. At the same time, little is known about the importance of agglomeration economies for the actual location behavior of firms. This is remarkable, since theories that underlie agglomeration economies are microeconomic in nature. In a case study of the Dutch province of South Holland, we analyze micro-level data to determine the extent to which relocation decisions are dependent on accessibility and agglomeration externalities when controlling for firm characteristic. These externalities are measured with location attributes for both own-sector localization and urbanization economies and for proximity to transport infrastructure. The results confirm that firm relocation behavior is affected much more by firm-level attributes (size, age, and growth rate) than by agglomeration and accessibility attributes. Still, accessibility and agglomeration are significantly attached to firm relocations, though their effects vary over sectors. Own-sector and generalized external economies are more important for a firm’s location choices than proximity to transport infrastructure.

Suggested Citation

  • de Bok, Michael & van Oort, Frank, 2011. "Agglomeration economies, accessibility, and the spatial choice behavior of relocating firms," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 4(1), pages 5-24.
  • Handle: RePEc:ris:jtralu:0054
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    References listed on IDEAS

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    Cited by:

    1. Patrick Witte & Frank Van Oort & Bart Wiegmans & Tejo Spit, 2013. "Capitalising on Spatiality in European Transport Corridors," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(4), pages 510-517, September.
    2. repec:kap:jgeosy:v:20:y:2018:i:1:d:10.1007_s10109-017-0258-x is not listed on IDEAS
    3. James Foreman-Peck & Tom Nicholls, 2015. "Inter-regional mobility of entrepreneurial SMEs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 57-87, January.
    4. Holl, Adelheid, 2016. "Highways and productivity in manufacturing firms," Journal of Urban Economics, Elsevier, vol. 93(C), pages 131-151.
    5. Wouter Jacobs & Hans R. A. Koster & Frank van Oort, 2014. "Co-agglomeration of knowledge-intensive business services and multinational enterprises," Journal of Economic Geography, Oxford University Press, vol. 14(2), pages 443-475.
    6. repec:gam:jsusta:v:10:y:2018:i:2:p:390-:d:129911 is not listed on IDEAS
    7. Levinson, David, 2011. "Introduction," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 4(1), pages 1-3.

    More about this item

    Keywords

    Firm location; Discrete choice modeling; Accessibility; Urban economics;

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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