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Determinants of industrial location. An application for Catalan municipalities

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  • Josep Maria Arauzo Carod

Abstract

The aim of this article is to show the main determinants of industrial location processes. To better illustrate phenomena such as agglomeration economies, which are normally studied at the regional level, we use local data. We use the Poisson model to identify the location patterns of firms. Our main statistical source is the Spanish Industrial Establishments Register, which has plant-level microdata on location of new industrial establishments. Our results show that the characteristics of a municipality strongly affect the location decisions of industrial establishments and that these decisions also depend on the sector in which the firm is located and the size of the firm. Copyright RSAI 2005.
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  • Josep Maria Arauzo Carod, "undated". "Determinants of industrial location. An application for Catalan municipalities," Studies on the Spanish Economy 138, FEDEA.
  • Handle: RePEc:fda:fdaeee:138
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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.
    2. Paulo Guimarães & Octávio Figueirdo & Douglas Woodward, 2003. "A Tractable Approach to the Firm Location Decision Problem," The Review of Economics and Statistics, MIT Press, pages 201-204.
    3. Figueiredo, Octavio & Guimaraes, Paulo, 1999. "Start-Ups Domestic Location Decisions, and the Entrepreneur's Geographical Origin," ERSA conference papers ersa99pa045, European Regional Science Association.
    4. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-1090, October.
    5. Gilles Duranton & Diego Puga, 2001. "Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products," American Economic Review, American Economic Association, pages 1454-1477.
    6. Costa-Campi, M. Teresa & Viladecans-Marsal, Elisabet & Segarra-Blasco, Agusti, 2000. "Business Dynamics And Territorial Flexibility," ERSA conference papers ersa00p164, European Regional Science Association.
    7. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-449, August.
    8. Josep Maria Arauzo Carod & Miguel C. ManjÛn AntolÌn, 2004. "Firm Size and Geographical Aggregation: An Empirical Appraisal in Industrial Location," Small Business Economics, Springer, pages 299-312.
    9. Meester, Wilhelm J., 2000. "Locational Self-Preference Of Firms," ERSA conference papers ersa00p421, European Regional Science Association.
    10. Stam, Erik & Schutjens, Veronique, 2000. "Locational Behaviour Of Young Firms: A Life Course Perspective," ERSA conference papers ersa00p56, European Regional Science Association.
    11. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-683, November.
    12. 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.
    13. Didier Baudewyns, 1999. "La localisation intra-urbaine des firmes: une estimation logit multinomiale," ULB Institutional Repository 2013/9157, ULB -- Universite Libre de Bruxelles.
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    Cited by:

    1. Laura Resmini, 2014. "Patterns of FDI in Southern European Periphery: a Tale of Missing FDI?," ERSA conference papers ersa14p543, European Regional Science Association.
    2. Elisabet Viladecans-Marsal & Josep-Maria Arauzo-Carod, 2012. "Can a knowledge-based cluster be created? The case of the Barcelona 22@ district," Papers in Regional Science, Wiley Blackwell, vol. 91(2), pages 377-400, June.
    3. Josep-Maria Arauzo-Carod & Elisabet Viladecans-Marsal, 2009. "Industrial Location at the Intra-Metropolitan Level: The Role of Agglomeration Economies," Regional Studies, Taylor & Francis Journals, vol. 43(4), pages 545-558.
    4. Buczkowska, Sabina & de Lapparent, Matthieu, 2014. "Location choices of newly created establishments: Spatial patterns at the aggregate level," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 68-81.
    5. Coll Martínez, Eva & Arauzo Carod, Josep Maria, 2015. "Creative Industries: a Preliminary Insight to their Location Determinants," Working Papers 2072/250133, Universitat Rovira i Virgili, Department of Economics.
    6. repec:nos:vgmu00:2017:i:4:p:173-206 is not listed on IDEAS
    7. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, pages 55-92.
    8. Roberto Basile & Luigi Benfratello & Davide Castellani, 2010. "Location Determinants of Greenfield Foreign Investments in the Enlarged Europe: Evidence from a Spatial Autoregressive Negative Binomial Additive Model," Working papers 10, Former Department of Economics and Public Finance "G. Prato", University of Torino.
    9. Brown, Jason & Lambert, Dayton, 2014. "Location decisions of natural gas extraction establishments: a smooth transition count model approach," Research Working Paper RWP 14-5, Federal Reserve Bank of Kansas City.
    10. Gehringer, Agnieszka & Krenz, Astrid, 2014. "European market integration and the determinants of firm localization: The case of Poland," Center for European, Governance and Economic Development Research Discussion Papers 190, University of Goettingen, Department of Economics.
    11. Ángel Alañón-Pardo & Josep-Maria Arauzo-Carod, 2011. "Agglomeration, accessibility and industrial location: evidence from spanish municipalities," Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales 11-02, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
    12. Elisabet Viladecans Marsal & Josep Maria Arauzo Carod, "undated". "Industrial Location at the Intra-metropolitan Level: A Negative Binomial Approach," Studies on the Spanish Economy 224, FEDEA.
    13. Josep-Maria Arauzo-Carod, 2013. "Location Determinants of New Firms: Does Skill Level of Human Capital Really Matter?," Growth and Change, Wiley Blackwell, vol. 44(1), pages 118-148, March.
    14. Lambert, Dayton M. & Brown, Jason P. & Florax, Raymond J.G.M., 2010. "A two-step estimator for a spatial lag model of counts: Theory, small sample performance and an application," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 241-252, July.
    15. Jordi Jofre-Monseny & Raquel Marín-López & Elisabet Viladecans-Marsal, 2012. "What underlies localization and urbanization economies? Evidence from the location of new firms," Working Papers 2012/9, Institut d'Economia de Barcelona (IEB).
    16. Miguel C. Manjon-Antolin & Josep Maria Arauzo-Carod, 2006. "Locations and Relocations: Modelling, Determinants, and Interrelations," ERSA conference papers ersa06p33, European Regional Science Association.
    17. Kinne, Jan & Resch, Bernd, 2017. "Analysing and predicting micro-location patterns of software firms," ZEW Discussion Papers 17-063, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    18. repec:scn:vgmu00:2017:i:4:p:173-206 is not listed on IDEAS
    19. Nadia Rocha, 2008. "Determinants of Firm Location: Empirical Evidence for France," IHEID Working Papers 08-2008, Economics Section, The Graduate Institute of International Studies.
    20. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, pages 55-92.
    21. Roberto Basile & Luigi Benfratello & Davide Castellani, 2012. "Geoadditive models for regional count data: an application to industrial location," ERSA conference papers ersa12p83, European Regional Science Association.
    22. Angel AlanÛn & Josep Maria Arauzo Carod, "undated". "Accessibility and Industrial Location. Some Evidence from Spain," Studies on the Spanish Economy 214, FEDEA.
    23. Raimund Krumm & Harald Strotmann, 2010. "The Impact of Regional Supply and Demand Conditions on Job Creation and Destruction," IAW Discussion Papers 61, Institut für Angewandte Wirtschaftsforschung (IAW).
    24. Liviano Solís, Daniel & Arauzo Carod, Josep Maria, 2011. "Industrial Location and Space: New Insights," Working Papers 2072/152137, Universitat Rovira i Virgili, Department of Economics.
    25. Roberto Basile & Luigi Benfratello & Davide Castellani, 2011. "Spatial clustering and nonlinearities in the location of multinational firms," Quaderni del Dipartimento di Economia, Finanza e Statistica 90/2011, Università di Perugia, Dipartimento Economia.

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