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Backward And Forward Linkages In Manufacturing Location Decisions Reconsidered

Author

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  • Frank L. Hefner

    (University of South Carolina)

  • Paulo P. Guimares

    (Universidade do Porto, and Instituto Nacional de lnvestigacao Cientifica)

Abstract

Backward and forward linkages are often cited as both determinants of plant location and as desirable factors in targeting potential firms. This paper models manufacturing investment decisions within a state economy. We use a conditional multinomial logit model and find that both types of linkages are significant. We further note that per capita income and the number of workers employed in manufacturing within the region are also significant in the location decision.

Suggested Citation

  • Frank L. Hefner & Paulo P. Guimares, 1994. "Backward And Forward Linkages In Manufacturing Location Decisions Reconsidered," The Review of Regional Studies, Southern Regional Science Association, vol. 24(3), pages 229-244, Winter.
    • Handle: RePEc:rre:publsh:v24:y:1994:i:3:p:229-244
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    References listed on IDEAS

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    1. McAleese, Dermot & McDonald, Donogh, 1978. "Employment Growth and the Development of Linkages in Foreign-Owned and Domestic Manufacturing Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(4), pages 321-339, November.
    2. John P. Blair & Robert Premus, 1987. "Major Factors in Industrial Location: A Review," Economic Development Quarterly, , vol. 1(1), pages 72-85, February.
    3. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-449, August.
    4. Hansen, Eric R., 1987. "Industrial location choice in Sao Paulo, Brazil : A nested logit model," Regional Science and Urban Economics, Elsevier, vol. 17(1), pages 89-108, February.
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    Cited by:

    1. Raimundo Soto, "undated". "Política Fomento Empresarial y Reconversión Laboral: Experiencias Internacionales y el Caso Chileno," ILADES-UAH Working Papers inv109, Universidad Alberto Hurtado/School of Economics and Business.
    2. Paul Frijters & Dirk J Bezemer & Uwe Dulleck, 2005. "Contacts, Market Institutions, and Development," School of Economics and Finance Discussion Papers and Working Papers Series 205a, School of Economics and Finance, Queensland University of Technology.
    3. Dirk Bezemer & Uwe Dulleck & Paul Frijters, 2003. "Contacts, Social Capital and Market Institutions - A Theory of Development," Vienna Economics Papers vie0311, University of Vienna, Department of Economics.

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