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The influence of transport on industrial location choice: a stated preference experiment

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  • Leitham, Scott
  • McQuaid, Ronald W.
  • D. Nelson, John

Abstract

Stated preference experiments are introduced and applied to an investigation of the influence of road transport and other factors on industrial location in terms of the ex ante decision making process. The experiments, based upon repeated hypothetical discrete choices between pairs of locations, involved respondents from firms making trade-offs between the various characteristics in a fractional factorial, orthogonal survey design. In each defined case, a clear hierarchy of location factors emerged. These were found to vary according to the origin of the firm - classified as local relocations, foreign inward investors, and branch plants sourced from national bases. The importance of road links to location choice varied considerably between these groups with the latter rating motorway links the highest of any of the groups of firms. In contrast, overseas sourced branch firms found road links largely unimportant, being outweighed primarily by considerations of workforce and premises. Local relocations fell into two distinct groups with respect to the importance attached to road links (between relatively important and non-important), whilst considering the other factors similarly. Good public transport provision emerged as a statistically significant factor only in certain scenarios. Finally, the paper discusses implications for location choice models in transport and further research.

Suggested Citation

  • Leitham, Scott & McQuaid, Ronald W. & D. Nelson, John, 2000. "The influence of transport on industrial location choice: a stated preference experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(7), pages 515-535, September.
    • Handle: RePEc:eee:transa:v:34:y:2000:i:7:p:515-535
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    References listed on IDEAS

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    9. Anthony Chin & Hong Junjie, 2005. "The Location Decisions of Foreign Logistics Firms in China : Does Transport Network Capacity Matter?," Trade Working Papers 22568, East Asian Bureau of Economic Research.
    10. Verhetsel, Ann & Kessels, Roselinde & Goos, Peter & Zijlstra, Toon & Blomme, Nele & Cant, Jeroen, 2015. "Location of logistics companies: a stated preference study to disentangle the impact of accessibility," Journal of Transport Geography, Elsevier, vol. 42(C), pages 110-121.
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    13. Jingming Liu & Xianhui Hou & Chuyu Xia & Xiang Kang & Yujun Zhou, 2021. "Examining the Spatial Coordination between Metrorail Accessibility and Urban Spatial Form in the Context of Big Data," Land, MDPI, vol. 10(6), pages 1-20, May.
    14. van den Heuvel, Frank P. & Rivera, Liliana & van Donselaar, Karel H. & de Jong, Ad & Sheffi, Yossi & de Langen, Peter W. & Fransoo, Jan C., 2014. "Relationship between freight accessibility and logistics employment in US counties," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 91-105.
    15. Y Nguyen CAO, 2021. "Modeling Logistic Enterprise Re-Location Decision By A Nested Logit Model," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 49-57, June.
    16. Y Nguyen CAO, 2020. "Modeling Logistic Enterprise Re-Location Decision By A Nested Logit Model," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 55-68, June.
    17. Mc Quaid, Ronald & Bergmann, Ariel, 2008. "Employer recruitment preferences and discrimination: a stated preference experiment," MPRA Paper 30801, University Library of Munich, Germany.
    18. Charisia Vlachou & Olga Iakovidou, 2015. "The Evolution Of Studies On Business Location Factors," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-23, December.
    19. Hong, Junjie, 2007. "Transport and the location of foreign logistics firms: The Chinese experience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(6), pages 597-609, July.
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    21. Bliemer, Michiel C.J. & Rose, John M., 2011. "Experimental design influences on stated choice outputs: An empirical study in air travel choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 63-79, January.
    22. Cao Nguyen & Kazushi Sano & Tu Tran & Tan Doan, 2013. "Firm relocation patterns incorporating spatial interactions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 685-703, June.
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    25. Jae-Hong Kim & Francesca Pagliara & John Preston, 2003. "An Analysis of Residential Location Choice Behaviour in Oxfordshire, Uk: A Combined Stated Preference Approach," International Review of Public Administration, Taylor & Francis Journals, vol. 8(1), pages 103-114, July.

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