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Understanding Firms' Relocation and Expansion Decisions Using Self-Reported Factor Importance Rating

  • Hu, Wuyang

    (U KY)

  • Cox, Linda J.

    (U HI)

  • Wright, Joan

    (U NV, Reno)

  • Harris, Thomas R.

    (U NV, Reno)

Using individual business surveys, this study examines the most important factors for firms' decisions to relocate or expand in the past as well as their intention to relocate or expand in the future. Results indicate that factors related to firms' internal characteristics, features of location sites, and the general economic environment may affect firms' past and future decisions. These factors are found to be generally consistent in their impact upon the past and future decisions with several noticeable differences. The hypothesis of footloose firms is supported by this study.

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Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 38 (2008)
Issue (Month): 1 ()
Pages: 67-88

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Handle: RePEc:rre:publsh:v:38:y:2008:i:1:p:67-88
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  1. Pellenbarg, P.H. & Wissen, L.J.G. van & Dijk, J. van, 2002. "Firm relocation: state of the art and research prospects," Research Report 02D31, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  2. Paulo Guimaraes & Octávio Figueiredo & Douglas Woodward, 2004. "Industrial Location Modeling: Extending the Random Utility Framework," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 1-20.
  3. Roger W. Schmenner, 1980. "Choosing New Industrial Capacity: On-Site EXpansion, Branching, and Relocation," The Quarterly Journal of Economics, Oxford University Press, vol. 95(1), pages 103-119.
  4. Wohlgemuth, Darin & Kilkenny, Maureen, 1998. "Firm Relocation Threats and Copy Cat Costs," Staff General Research Papers Archive 1202, Iowa State University, Department of Economics.
  5. Aleid E. Brouwer & Ilaria Mariotti & Jos N. van Ommeren, 2004. "The firm relocation decision: An empirical investigation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 335-347, 06.
  6. repec:dgr:rugsom:02d31 is not listed on IDEAS
  7. van Dijk, Jouke & Pellenbarg, Piet H., 1999. "Firm relocation decisions in The Netherlands: an ordered logit approach," ERSA conference papers ersa99pa418, European Regional Science Association.
  8. Gilles Grolleau & Tarik Lakhal & Naoufel Mzoughi, 2004. "Does Ethical Activism Lead to Firm Relocation?," Kyklos, Wiley Blackwell, vol. 57(3), pages 387-402, 08.
  9. Davis Reum, Alison & Harris, Thomas R., 2006. "Exploring Firm Location Beyond Simple Growth Models: A Double Hurdle Application," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(1).
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