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Transportation/Communication Considerations in the Location of Headquarters for Multi-Establishment Manufacturing Firms


  • Warren G. Lavey


Usually transportation/communication (t/c) considerations appear as only two in a long list of factors which determine headquarters location patterns. The research reported here singles out t/c considerations as the logical basis for headquarters location decisions. We ask: to what degree do transportation/communication consideration explain the patterns of headquarters location? The case of manufacturing firms with five or more establishments and no manufacturing activity at the headquarters location was examined. The t/c considerations were studied in terms of the advantages of close proximity between the headquarters of a firm and the manufacturing establishments of that firm and the advantages of close proximity between the headquarters of one firm and the headquarters of other firms. The findings of this research show that the logic of headquarters location patterns is heavily dependent on t/c considerations.

Suggested Citation

  • Warren G. Lavey, 1974. "Transportation/Communication Considerations in the Location of Headquarters for Multi-Establishment Manufacturing Firms," NBER Working Papers 0052, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:0052

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    Cited by:

    1. Jith Jayaratne & Philip E. Strahan, 1996. "Entry restrictions, industry evolution and dynamic efficiency: evidence from commercial banking," Research Paper 9630, Federal Reserve Bank of New York.

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