Spatial clustering and nonlinearities in the location of multinational firms
We propose a semiparametric geoadditive negative binomial model of industrial location which allows to simultaneously address some important methodological issues, such as spatial clustering and nonlinearities, which have been only partly addressed in previous studies. We apply this model to analyze location determinants of inward greenfield investments occurred over the 2003-2007 period in 249 European regions. The inclusion of a geoadditive component (a smooth spatial trend surface) allows to control for omitted variables which induce spatial clustering, and suggests that such unobserved factors may be related to regional policies towards foreign investors Allowing for nonlinearities reveals, in line with theoretical predictions, that the positive effect of agglomeration economies fades as the density of economic activities reaches some limit value.
|Date of creation:||02 May 2011|
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- Josep Maria Arauzo-Carod & Elisabet Viladecans-Marsal, 2006.
"Industrial location at the intra-metropolitan level: The role of agglomeration economies,"
2006/5, Institut d'Economia de Barcelona (IEB).
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- Josep Maria Arauzo Carod, 2005.
"Determinants of industrial location: An application for Catalan municipalities,"
Papers in Regional Science,
Wiley Blackwell, vol. 84(1), pages 105-120, 03.
- Josep Maria Arauzo Carod, . "Determinants of industrial location. An application for Catalan municipalities," Studies on the Spanish Economy 138, FEDEA.
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- Josep-Maria Arauzo-Carod & Daniel Liviano-Solis & Miguel Manjón-Antolín, 2010.
"Empirical Studies In Industrial Location: An Assessment Of Their Methods And Results,"
Journal of Regional Science,
Wiley Blackwell, vol. 50(3), pages 685-711.
- Arauzo Carod, Josep Maria & Liviano Solís, Daniel & Manjón Antolín, Miguel C., 2008. "Empirical studies in industrial location: an assessment of their methods and results," Working Papers 2072/9257, Universitat Rovira i Virgili, Department of Economics.
- Elisabet Viladecans-Marsal, 2004. "Agglomeration economies and industrial location: city-level evidence," Journal of Economic Geography, Oxford University Press, vol. 4(5), pages 565-582, November.
- Paulo Guimaraes & Octávio Figueiredo & Douglas Woodward, 2004. "Industrial Location Modeling: Extending the Random Utility Framework," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 1-20.
- Lisa De Propris & Nigel Driffield & Stefano Menghinello, 2005. "local industrial systems and the location of FDI in Italy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(1), pages 105-121.
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