Locations and relocations: determinants, modelling, and interrelations

Abstract

Empirical studies on industrial location do not typically distinguish between new and relocated establishments, which may result in biased estimates and thus misleading policy implications. This paper addresses this shortcoming using data on the frequency of these events in the municipalities of Catalonia. We find that most factors affecting start-up rates are different from those affecting relocation rates, while those that affect both rates do so with different intensities. In addition, start-ups and relocations are positive but asymmetrically related. These results from count regression models are consistent with the idea that the information on which location and relocation decisions hinge differs.

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Correspondence to Miguel C. Manjón-Antolín.

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Manjón-Antolín, M.C., Arauzo-Carod, JM. Locations and relocations: determinants, modelling, and interrelations. Ann Reg Sci 47, 131–146 (2011). https://doi.org/10.1007/s00168-009-0360-1

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JEL Classification

  • C25
  • R30
  • R10