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(Optimal) Spatial Aggregation in the Determinants of Industrial Location

  • Arauzo Carod, Josep Maria
  • Manjón Antolín, Miguel C.

Empirical studies on the determinants of industrial location typically use variables measured at the available administrative level (municipalities, counties, etc.). However, this amounts to assuming that the effects these determinants may have on the location process do not extent beyond the geographical limits of the selected site. We address the validity of this assumption by comparing results from standard count data models with those obtained by calculating the geographical scope of the spatially varying explanatory variables using a wide range of distances and alternative spatial autocorrelation measures. Our results reject the usual practice of using administrative records as covariates without making some kind of spatial correction. Keywords: industrial location, count data models, spatial statistics JEL classification: C25, C52, R11, R30

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File URL: http://hdl.handle.net/2072/42866
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Paper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/42866.

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Date of creation: 2009
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Handle: RePEc:urv:wpaper:2072/42866
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  1. Crozet, M. & Mayer, T. & Micchielli, J.L., 2000. "How Do Firms Agglomerate? A Study of FDI in France?," Papiers d'Economie Mathématique et Applications 2000.50, Université Panthéon-Sorbonne (Paris 1).
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