IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v46y2015i4p558-573.html
   My bibliography  Save this article

Plant Location Patterns in the European Automobile Supplier Industry

Author

Listed:
  • Thomas Klier
  • Daniel McMillen

Abstract

Motor vehicle and motor vehicle parts production tend to exhibit a strong degree of agglomeration. We estimate a location model utilizing detailed plant-level data for over 1,700 European locations of the largest motor vehicle parts suppliers, as well as the location of all light vehicle assembly plants operational in 2010. This unique data set allows us to estimate a location model for the region at a significantly higher level of resolution than the previous literature. The results suggest that the main forces of agglomeration in the European auto supplier sector are highway access and the desire to locate near assembly plants as well as near other parts-producing plants.

Suggested Citation

  • Thomas Klier & Daniel McMillen, 2015. "Plant Location Patterns in the European Automobile Supplier Industry," Growth and Change, Wiley Blackwell, vol. 46(4), pages 558-573, December.
    • Handle: RePEc:bla:growch:v:46:y:2015:i:4:p:558-573
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/grow.12114
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yannick Lung, 2004. "The changing geography of the European automobile system," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 4(2/3), pages 137-165.
    2. Vincent Frigant, 2009. "Winners and Losers in the Auto Parts Industry: Trajectories Followed by the Main First Tier Suppliers Over the Past Decade," Palgrave Macmillan Books, in: Michel Freyssenet (ed.), The Second Automobile Revolution, chapter 22, pages 419-442, Palgrave Macmillan.
    3. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Firms in the European Union," Post-Print hal-00267438, HAL.
    4. Gilles Duranton & Henry G. Overman, 2008. "Exploring The Detailed Location Patterns Of U.K. Manufacturing Industries Using Microgeographic Data," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 213-243, February.
    5. Bolesław Domański & Krzysztof Gwosdz, 2009. "Toward a More Embedded Production System? Automotive Supply Networks and Localized Capabilities in Poland," Growth and Change, Wiley Blackwell, vol. 40(3), pages 452-482, September.
    6. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Investment in the European Union," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 959-972, November.
    7. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    8. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    9. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    10. David Sadler, 1999. "Internationalization and Specialization in the European Automotive Components Sector: Implications for the Hollowing-out Thesis," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 109-119.
    11. Yannick Lung & Boleslaw Domanski, 2009. "The changing face of the European periphery in the automotive industry," Post-Print hal-00388014, HAL.
    12. repec:hal:wpspec:info:hdl:2441/10192 is not listed on IDEAS
    13. 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.
    14. Vincent Frigant & Jean-Bernard Layan, 2009. "Modular production and the new division of labour within Europe: the perspective of French automotive parts suppliers," Post-Print hal-00381341, HAL.
    15. Thomas Klier & Daniel P. McMillen, 2008. "Evolving Agglomeration In The U.S. Auto Supplier Industry," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 245-267, February.
    16. Thomas Klier & James Rubenstein, 2008. "Who Really Made Your Car? Restructuring and Geographic change in the Auto Industry," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wrmyc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas H. Klier & Daniel P. McMillen, 2013. "Agglomeration in the European Automobile Supplier Industry," Working Paper Series WP-2013-15, Federal Reserve Bank of Chicago.
    2. Alfaro, Laura & Chen, Maggie Xiaoyang, 2014. "The global agglomeration of multinational firms," Journal of International Economics, Elsevier, vol. 94(2), pages 263-276.
    3. Thomas H. Klier, 2015. "Auto Production Footprints: Comparing Europe and North America," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 101-119.
    4. Billings, Stephen B. & Johnson, Erik B., 2012. "A non-parametric test for industrial specialization," Journal of Urban Economics, Elsevier, vol. 71(3), pages 312-331.
    5. Xiwei Zhu & Ye Liu & Ming He & Deming Luo & Yiyun Wu, 2019. "Entrepreneurship and industrial clusters: evidence from China industrial census," Small Business Economics, Springer, vol. 52(3), pages 595-616, March.
    6. Di Giacinto, Valter & Pagnini, Marcello, 2011. "Local and global agglomeration patterns: Two econometrics-based indicators," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 266-280, May.
    7. Vincent Frigant & Stéphane Miollan, 2014. "The Geographical Restructuring of the European Automobile Industry in the 2000s," Working Papers hal-02150630, HAL.
    8. Marcon, Eric & Puech, Florence, 2017. "A typology of distance-based measures of spatial concentration," Regional Science and Urban Economics, Elsevier, vol. 62(C), pages 56-67.
    9. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    10. Oliver Falck & Michael Fritsch & Stephan Heblich, 2014. "Is industry location persistent over time? Evidence from coagglomeration patterns between new and incumbent firms in Germany," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 34(1), pages 1-21, February.
    11. Stephen Billings & Erik Johnson, 2012. "Localization and Co-Localization within an Urban Area," ERSA conference papers ersa12p569, European Regional Science Association.
    12. Jesús F. Lampón & Santiago Lago-Peñas & Pablo Cabanelas, 2016. "Can the periphery achieve core? The case of the automobile components industry in Spain," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 595-612, August.
    13. Ioannides, Yannis M., 2015. "Neighborhoods to nations via social interactions," Economic Modelling, Elsevier, vol. 48(C), pages 5-15.
    14. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    15. Vincent FRIGANT & Jean-Bernard LAYAN, 2010. "A comparative analysis of automobile parts trade exchange between France and Germany: crossing international economics and industrial dynamics (In French)," Cahiers du GREThA (2007-2019) 2010-17, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    16. Vincent FRIGANT, 2011. "French mega-suppliers’ trajectories during the modular era: some evidences on Faurecia, Valeo and Plastic Omnium," Cahiers du GREThA (2007-2019) 2011-20, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    17. Vincent FRIGANT, 2011. "Three uncertainties looming over the European auto industry," Cahiers du GREThA (2007-2019) 2011-34, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    18. Barlet, M. & Briant, A. & Crusson, L., 2013. "Location patterns of service industries in France: A distance-based approach," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 338-351.
    19. Bagoulla, Corinne & Péridy, Nicolas, 2011. "Market access and the other determinants of North–South manufacturing location choice: An application to the Euro-Mediterranean area," Economic Systems, Elsevier, vol. 35(4), pages 537-561.
    20. Kristian Behrens & W. Mark Brown & Théophile Bougna, 2018. "The World Is Not Yet Flat: Transport Costs Matter!," The Review of Economics and Statistics, MIT Press, vol. 100(4), pages 712-724, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:46:y:2015:i:4:p:558-573. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.