IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v72y2024i4d10.1007_s00168-023-01238-x.html
   My bibliography  Save this article

What makes German manufacturing plants move locations?

Author

Listed:
  • Astrid Krenz

    (Ruhr University Bochum)

Abstract

In this paper, the relocation decisions of manufacturing plants across the NUTS-3 regions of the German economy are investigated. A relocation decision concerns whether a plant (an incumbent) moves its location from one region to another over a given time period or whether it remains in the same region. This decision is distinct from a location decision (of a start-up). To analyze the relocations of plants, the rich information of the official German regional statistics as well as the official German firm statistics that are maintained by the German Federal Statistical Office and the Statistical Offices of the Federal States is exploited for the first time. Both pull and push factors that influence relocation decisions are investigated. The results reveal that, in particular, regional road infrastructure and accessibility of regions as well as the quality of the available labor force positively affect the decision to relocate a plant in the German economy. A reduction of 10% in travel time by road to reach the three nearest agglomeration centers leads to an increase in relocation probability of about 9.5% on average. Policy implications involve the need for improvement of accessibility and infrastructure as well as incentives to support human capital in order to attract businesses to move to a region.

Suggested Citation

  • Astrid Krenz, 2024. "What makes German manufacturing plants move locations?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(4), pages 1129-1157, April.
    • Handle: RePEc:spr:anresc:v:72:y:2024:i:4:d:10.1007_s00168-023-01238-x
    DOI: 10.1007/s00168-023-01238-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00168-023-01238-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00168-023-01238-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:72:y:2024:i:4:d:10.1007_s00168-023-01238-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.