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Start-ups and relocations: Manufacturing plant location in Portugal

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  • Adelheid Holl

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Abstract

This article analyses the spatial pattern of plant start-ups and plant relocations in Portugal between 1986 and 1997. The results show that start-ups and relocations are not attracted by the same set of location characteristics. The probability of a plant start-up is more strongly related to increases in local market size and labour force qualification, lower labour costs, and a more diversified economic environment. In contrast, relocations show a greater preference for areas with better national market accessibility, availability of producer services and a larger industrial basis. Relocations are also much more strongly attracted by the provision of inter-regional motorways. The results are consistent with the assertion that firms value location attributes differently over the plant life cycle. Copyright Springer-Verlag Berlin/Heidelberg 2004

Suggested Citation

  • Adelheid Holl, 2004. "Start-ups and relocations: Manufacturing plant location in Portugal," Economics of Governance, Springer, vol. 83(4), pages 649-668, October.
  • Handle: RePEc:spr:ecogov:v:83:y:2004:i:4:p:649-668 DOI: 10.1007/s10110-004-0218-y
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