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Location Determinants of New Firms: Does Skill Level of Human Capital Really Matter?

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  • Arauzo Carod, Josep Maria

Abstract

This paper is about the role played by stock of human capital on location decisions of new manufacturing plants. We analyse the effect of several skill levels (from basic school to PhD) on decisions about the location of plants in various industries and, therefore, of different technological levels. We also test whether spatial aggregation level biases the results and determine the most appropriate areas to be considered in analyses of these phenomena. Our main statistical source is the Register of Manufacturing Establishments of Catalonia (REIC), which has plant-level microdata on the locations of new manufacturing plants. Keywords: agglomeration economies, industrial location, human capital, count-data models, spatial econometrics.

Suggested Citation

  • Arauzo Carod, Josep Maria, 2011. "Location Determinants of New Firms: Does Skill Level of Human Capital Really Matter?," Working Papers 2072/152136, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/152136
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    1. 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, August.
    2. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    3. Josep Maria Arauzo Carod & Miguel C. ManjÛn AntolÌn, 2004. "Firm Size and Geographical Aggregation: An Empirical Appraisal in Industrial Location," Small Business Economics, Springer, vol. 22(3_4), pages 299-312, April.
    4. Todd Gabe, 2003. "Local Industry Agglomeration and New Business Activity," Growth and Change, Wiley Blackwell, vol. 34(1), pages 17-39, February.
    5. Schmenner, Roger W. & Huber, Joel C. & Cook, Randall L., 1987. "Geographic differences and the location of new manufacturing facilities," Journal of Urban Economics, Elsevier, vol. 21(1), pages 83-104, January.
    6. Smith Jr. , Donald F. & Florida Richard, 1994. "Agglomeration and Industrial Location: An Econometric Analysis of Japanese-Affiliated Manufacturing Establishments in Automotive-Related Industries," Journal of Urban Economics, Elsevier, vol. 36(1), pages 23-41, July.
    7. Luisa Alamá-Sabater & Andrés Artal-Tur & José Navarro-Azorín, 2011. "Industrial location, spatial discrete choice models and the need to account for neighbourhood effects," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 393-418, October.
    8. Shaoming Cheng & Roger Stough, 2006. "Location decisions of Japanese new manufacturing plants in China: a discrete-choice analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(2), pages 369-387, June.
    9. Josep-Maria Arauzo-Carod & Elisabet Viladecans-Marsal, 2009. "Industrial Location at the Intra-Metropolitan Level: The Role of Agglomeration Economies," Regional Studies, Taylor & Francis Journals, vol. 43(4), pages 545-558.
    10. Audretsch, David B. & Lehmann, Erik E., 2005. "Does the Knowledge Spillover Theory of Entrepreneurship hold for regions?," Research Policy, Elsevier, vol. 34(8), pages 1191-1202, October.
    11. Cletus C. Coughlin & Eran Segev, 2000. "Location Determinants of New Foreign‐Owned Manufacturing Plants," Journal of Regional Science, Wiley Blackwell, vol. 40(2), pages 323-351, May.
    12. Hansen, Eric R., 1987. "Industrial location choice in Sao Paulo, Brazil : A nested logit model," Regional Science and Urban Economics, Elsevier, vol. 17(1), pages 89-108, February.
    13. Jopep M. Arauzo-Carod & Miguel C. Manjón-Antolín (ed.), 2007. "Entrepreneurship, Industrial Location and Economic Growth," Books, Edward Elgar Publishing, number 12798.
    14. Guimaraes, Paulo & Figueiredo, Octavio & Woodward, Douglas, 2000. "Agglomeration and the Location of Foreign Direct Investment in Portugal," Journal of Urban Economics, Elsevier, vol. 47(1), pages 115-135, January.
    15. 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, March.
    16. Josep‐Maria Arauzo‐Carod, 2008. "Industrial Location At A Local Level: Comments On The Territorial Level Of The Analysis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(2), pages 193-208, April.
    17. Jurgen Egeln & Sandra Gottschalk & Christian Rammer, 2004. "Location Decisions of Spin-offs from Public Research Institutions," Industry and Innovation, Taylor & Francis Journals, vol. 11(3), pages 207-223.
    18. Todd M. Gabe & Kathleen P. Bell, 2004. "Tradeoffs between Local Taxes and Government Spending as Determinants of Business Location," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 21-41, February.
    19. Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2011. "Locations and relocations: determinants, modelling, and interrelations," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 131-146, August.
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    Cited by:

    1. Andrés Artal-Tur & José Miguel Navarro-Azorín & Antonio García-Sánchez & María Luisa Alamá-Sabater, 2012. "The Role of Destination Spatial Spillovers and Technological Intensity in the Location of Manufacturing and Services Firms," Environment and Planning B, , vol. 39(6), pages 991-1005, December.
    2. Ilanit Gavious & Yaron Lahav & Meir Russ, 2016. "Changes in the value implications of compensation costs throughout the economic cycle: an examination of high-tech versus low-tech industries," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 23(2), pages 200-223, June.
    3. Federico Pablo-Martí & Josep-Maria Arauzo-Carod, 2020. "Spatial distribution of economic activities: a network approach," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 15(2), pages 441-470, April.
    4. Minghao Li & Stephan J. Goetz & Mark Partridge & David A. Fleming, 2016. "Location determinants of high-growth firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 97-125, January.
    5. Gehringer, Agnieszka & Krenz, Astrid, 2014. "European market integration and the determinants of firm localization: The case of Poland," University of Göttingen Working Papers in Economics 190, University of Goettingen, Department of Economics.
    6. Sara Cruz & Aurora A.C. Teixeira, 2014. "The determinants of spatial location of creative industries start-ups: Evidence from Portugal using a discrete choice model approach," FEP Working Papers 546, Universidade do Porto, Faculdade de Economia do Porto.
    7. Martín-Barroso, David & Núñez-Serrano, Juan A. & Velázquez, Francisco J., 2017. "Firm heterogeneity and the accessibility of manufacturing firms to labour markets," Journal of Transport Geography, Elsevier, vol. 60(C), pages 243-256.
    8. Adán Jacinto Flores Flores & Maritza Álvarez Herrera & Francisco García Fernández, 2017. "Factores determinantes de la localización del sector eléctrico-electrónico en México," Nóesis. Revista de Ciencias Sociales y Humanidades, Nóesis. Revista de Ciencias Sociales y Humanidades, vol. 26, pages 20-44, 51.

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    Keywords

    Localització industrial; Recursos humans; Anàlisi espacial (Estadística); 332 - Economia regional i territorial. Economia del sòl i de la vivenda;
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