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Firm relocations in the Netherlands: Why do firms move, and where do they go?

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  • Kronenberg, Kristin

Abstract

This study analyzes determinants of business relocation and identifies regional characteristics which attract relocating firms. Results indicate that the relocation decisions of firms are sector-dependent, and the migratory behavior of firms in knowledge-intensive sectors notably differs from that in less knowledge-intensive sectors. Generally, its age and size keep a firm from relocating, whereas firms paying high average salaries have a higher probability to move out of their present location. Relocating firms are generally attracted by densely populated municipalities with high wage levels, and predominantly service firms are drawn to municipalities which are specialized in the firm’s own sector and appeal to individuals, while they avoid moving to municipalities in which only few sectors are present. Sector-specific wages may either attract, or deter firms, suggesting that this variable may capture both the cost and the quality of the locally available workforce.

Suggested Citation

  • Kronenberg, Kristin, 2011. "Firm relocations in the Netherlands: Why do firms move, and where do they go?," MPRA Paper 32147, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:32147
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    Cited by:

    1. Jean Dubé & Cédric Brunelle, 2014. "Dots to dots: a general methodology to build local indicators using spatial micro-data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 245-272, August.
    2. Marco Capasso & Elena Cefis & Koen Frenken, 2016. "Spatial Differentiation in Industrial Dynamics. The Case of the Netherlands (1994–2005)," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(3), pages 316-330, July.
    3. Kristin Kronenberg & Kati Volgmann, 2013. "Knowledge-intensive employment growth in the Dutch Randstad and the German Rhine-Ruhr area: the impact of centrality and peripherality," ERSA conference papers ersa13p624, European Regional Science Association.
    4. Conroy, Tessa & Deller, Steven & Tsvetkova, Alexandra, 2016. "Regional business climate and interstate manufacturing relocation decisions," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 155-168.
    5. repec:eee:iburev:v:27:y:2018:i:3:p:528-542 is not listed on IDEAS
    6. Kristin Kronenberg & Kati Volgmann, 2014. "Knowledge-intensive employment change in the Dutch Randstad and the German Rhine-Ruhr area: comparable patterns of growth and decline in two metropolitan regions?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 34(1), pages 39-60, February.

    More about this item

    Keywords

    firm relocation; mobility; location choices; nested logit;

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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