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Not So Footloose after All: Locational Behavior of Information Technology Establishments in the United States, 1989-1998

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  • William R. Latham

    () (Department of Economics,University of Delaware)

  • Simon Condliffe

    () (Ctr Applied Demograpy, University of Delaware)

Abstract

Among the benefits that technology can provide is greater connectivity among economic agents. Commerce now occurs across great geographic distances at nominal transaction costs. Technology, therefore, seems to have the potential to unshackle economic agents from their suppliers and customers, enabling them to seek out alternative locations without being at a comparative disadvantage to other businesses. This possibility has spawned the “death of distance” notion that distance no longer matters, that technology has made all locations equal. Such thinking has been encouraged by phenomena such as the widespread “outsourcing” of many back-office and service functions by U.S. firms and/or the location of many of these functions in India and other foreign countries.

Suggested Citation

  • William R. Latham & Simon Condliffe, 2005. "Not So Footloose after All: Locational Behavior of Information Technology Establishments in the United States, 1989-1998," Working Papers 05-15, University of Delaware, Department of Economics.
  • Handle: RePEc:dlw:wpaper:05-15
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    File URL: http://graduate.lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2005/UDWP2005-15.pdf
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    References listed on IDEAS

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    1. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
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    5. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
    6. Cole, Ismail M., 2000. "Spatial Differences in Manufacturing Firm Births and Deaths and Local Economic Conditions: Evidence from Pennsylvania," The Review of Regional Studies, Southern Regional Science Association, vol. 30(2), pages 215-236, Fall.
    7. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
    8. Guimaraes, Paulo & Figueiredo, Octavio & Woodward, Douglas, 2000. "Agglomeration and the Location of Foreign Direct Investment in Portugal," Journal of Urban Economics, Elsevier, vol. 47(1), pages 115-135, January.
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    Cited by:

    1. Simon Condliffe & William Latham & Christian Le Bas & Frédéric Miribel, 2008. "Agglomeration Economies within IT-Producing and IT-Consuming Industries in U.S. Regions," Working Papers 08-24, University of Delaware, Department of Economics.

    More about this item

    Keywords

    industrial location; distance; footloose; information technology; establishments births; agglomeration economies;

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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