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A Study of Regional-Level Location Factors of Car Manufacturing Companies in the EU

Author

Listed:
  • Ottó Csíki

    (Faculty of Economics and Business Administration, Department of Economics and Business Administration in Hungarian Language, Babeş-Bolyai University, Cluj-Napoca, Romania)

  • Réka Horváth

    (Faculty of Economics and Business Administration in Hungarian Language, Babeş-Bolyai University, Cluj-Napoca, Romania)

  • Levente Szász

    (Faculty of Economics and Business Administration, Department of Economics and Business Administration in Hungarian Language, Babeş-Bolyai University, Cluj-Napoca, Romania)

Abstract

The paper aims to explore how factors of regional competitiveness are associated with the location of car manufacturing companies in the EU. Although the European automotive market can be characterized by an intense dynamics in terms of location choices, literature offers little empirical guidance on how regional factors influence the location of car manufacturers in the EU. This paper aims to fill this gap by combining regional competitiveness data on 276 EU regions with the actual location of all 269 production units of car manufacturing companies currently present in the EU. Logistic regression is used to discover significant relationships, while the comparative analysis of clusters of regions is meant to offer a more detailed understanding of the role of different location factors. Results of the analysis show that the most influential location factor is related to infrastructural development, but other competitiveness factors, such as regional innovation capabilities or labour market efficiency, might also play an important role.

Suggested Citation

  • Ottó Csíki & Réka Horváth & Levente Szász, 2019. "A Study of Regional-Level Location Factors of Car Manufacturing Companies in the EU," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 13-39, December.
    • Handle: RePEc:aka:aoecon:v:69:y:2019:i:supplement2:p:13-39
    Note: The research was funded by UEFISCDI Romania (Executive Agency for Higher Education, Research, Development and Innovation Funding), project No. PN-III-P1-1.1-TE-2016-0502.
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    References listed on IDEAS

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    More about this item

    Keywords

    location; regional competitiveness; automotive industry; EU;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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