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(Optimal) Spatial Aggregation in the Determinants of Industrial Location

Listed author(s):
  • 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
Handle: RePEc:urv:wpaper:2072/42866
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  12. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 377-393, May.
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  15. repec:spo:wpecon:info:hdl:2441/c8dmi8nm4pdjkuc9g8o118937 is not listed on IDEAS
  16. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 1077-1106.
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  22. repec:hal:wpaper:halshs-00349294 is not listed on IDEAS
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  29. Holl, Adelheid, 2004. "Manufacturing location and impacts of road transport infrastructure: empirical evidence from Spain," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 341-363, May.
  30. Arauzo Carod, Josep Maria & Liviano, Daniel, 2007. "Agglomeration and location: a nonparametric approach," Working Papers 2072/4288, Universitat Rovira i Virgili, Department of Economics.
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