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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.

Suggested Citation

  • Hu, Wuyang & Cox, Linda J. & Wright, Joan & Harris, Thomas R., 2008. "Understanding Firms' Relocation and Expansion Decisions Using Self-Reported Factor Importance Rating," The Review of Regional Studies, Southern Regional Science Association, vol. 38(1), pages 67-88.
  • Handle: RePEc:rre:publsh:v:38:y:2008:i:1:p:67-88

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    References listed on IDEAS

    1. repec:dgr:rugsom:02d31 is not listed on IDEAS
    2. Darin Wohlgemuth & Maureen Kilkenny, 1998. "Firm Relocation Threats and Copy Cat Costs," International Regional Science Review, , vol. 21(2), pages 139-162, August.
    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. 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.
    5. Gilles Grolleau & Tarik Lakhal & Naoufel Mzoughi, 2004. "Does Ethical Activism Lead to Firm Relocation?," Kyklos, Wiley Blackwell, vol. 57(3), pages 387-402, August.
    6. 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).
    7. Jouke van Dijk & Piet H. Pellenbarg, 2000. "Firm relocation decisions in The Netherlands: An ordered logit approach," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 191-219.
    8. Joris Knoben & Leon Oerlemans, 2005. "The effects of firm relocation on firm performance - A literature review," ERSA conference papers ersa05p324, European Regional Science Association.
    9. 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, June.
    10. 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).
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    Cited by:

    1. Christoph Hauser & Myriam Baumeler & Hannes Egli, 2012. "Non-linearity of location factors," ERSA conference papers ersa12p192, European Regional Science Association.
    2. 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.
    3. Namazi-Rad, Mohammad-Reza & Mokhtarian, Payam & Shukla, Nagesh & Munoz, Albert, 2016. "A data-driven predictive model for residential mobility in Australia – A generalised linear mixed model for repeated measured binary data," Journal of choice modelling, Elsevier, vol. 20(C), pages 49-60.
    4. Bart Sleutjes & Beate Völker, 2012. "The Role Of The Neighbourhood For Firm Relocation," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 103(2), pages 240-249, April.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis


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