An Analysis of Firm Relocation Characteristics and Driving Factors in Beijing

Firm relocation has become a critical mechanism for optimizing resource allocation and promoting regional economic transformation amid urban functional restructuring and coordinated regional development. Using Beijing firm relocation data from 2010 to 2024, this study examines firm relocation dynamics and determinants at both macro and micro levels. At the macro level, a panel vector autoregression (PVAR) model incorporating firm out-migration, in-migration, and regional GDP is used to analyze their dynamic interactions. At the micro level, relocation data of Beijing-listed firms are analyzed using a zero-inflated negative binomial (ZINB) model to assess the effects of firm size, firm age, and industry characteristics on relocation frequency. Results show that firm relocation exhibits significant path dependence and self-reinforcing dynamics. Short-term out-migration releases spatial resources and facilitates new firm entry, while persistent out-migration may reduce long-term regional attractiveness. The economic effects on destination regions are stage-dependent, shifting from short-term adjustment costs to medium- and long-term growth benefits. Micro-level findings indicate that larger firms relocate more frequently, firm age shows an inverted U-shaped relationship with relocation, manufacturing firms move less often, and high-tech firms tend to remain location-stable. These findings provide empirical insights for understanding firm relocation behavior and inform policies for regional coordination and urban development. Â JEL classification numbers: R12, D22, L25.