IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v50y2013i2p515-534.html
   My bibliography  Save this article

Industrial location and interpretation of zero counts

Author

Listed:
  • Daniel Liviano
  • Josep-Maria Arauzo-Carod

Abstract

This paper intends to shed light on the treatment of zero counts in count data (CD) industrial location models. An excess of zeros and overdispersion has been dealt with by estimating mixture models such as negative binomial, zero-inflated and hurdle models. However, the existence of a considerable share of zero counts could also have an economic interpretation that is worth investigating. To do so, several CD models focussing specifically on zero-inflated and hurdle models have been fitted and compared to examine empirical data for Catalonia. Copyright Springer-Verlag 2013

Suggested Citation

  • Daniel Liviano & Josep-Maria Arauzo-Carod, 2013. "Industrial location and interpretation of zero counts," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 515-534, April.
    • Handle: RePEc:spr:anresc:v:50:y:2013:i:2:p:515-534
    DOI: 10.1007/s00168-012-0502-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00168-012-0502-8
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00168-012-0502-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
    2. Kogut, Bruce & Chang, Sea Jin, 1991. "Technological Capabilities and Japanese Foreign Direct Investment in the United States," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 401-413, August.
    3. Bruce A. Blonigen, 2019. "Firm-Specific Assets and the Link Between Exchange Rates and Foreign Direct Investment," World Scientific Book Chapters, in: Foreign Direct Investment, chapter 3, pages 89-120, World Scientific Publishing Co. Pte. Ltd..
    4. Paulo Guimarães & Octávio Figueiredo & Douglas Woodward, 2004. "Industrial Location Modeling: Extending the Random Utility Framework," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 1-20, February.
    5. Papke, Leslie E., 1991. "Interstate business tax differentials and new firm location : Evidence from panel data," Journal of Public Economics, Elsevier, vol. 45(1), pages 47-68, June.
    6. Todd Gabe, 2003. "Local Industry Agglomeration and New Business Activity," Growth and Change, Wiley Blackwell, vol. 34(1), pages 17-39, February.
    7. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
    8. 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.
    9. Roberto, Basile, 2004. "Acquisition versus greenfield investment: the location of foreign manufacturers in Italy," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 3-25, January.
    10. 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.
    11. Combes, Pierre-Philippe, 2000. "Economic Structure and Local Growth: France, 1984-1993," Journal of Urban Economics, Elsevier, vol. 47(3), pages 329-355, May.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. Eric A. Nerlinger & Franz-Josef Bade, 2000. "The spatial distribution of new technology-based firms: Empirical results for West-Germany," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 155-176.
    18. 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.
    19. Henderson, J Vernon & Kuncoro, Ari, 1996. "Industrial Centralization in Indonesia," The World Bank Economic Review, World Bank, vol. 10(3), pages 513-540, September.
    20. Bedassa Tadesse & Michael Ryan, 2004. "Host market characteristics, FDI, and the FDI - trade relationship," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 13(2), pages 199-229.
    21. KaSaundra M. Tomlin, 2000. "The Effects of Model Specification on Foreign Direct Investment Models: An Application of Count Data Models," Southern Economic Journal, John Wiley & Sons, vol. 67(2), pages 460-468, July.
    22. 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.
    23. List, John A., 2001. "US county-level determinants of inbound FDI: evidence from a two-step modified count data model," International Journal of Industrial Organization, Elsevier, vol. 19(6), pages 953-973, May.
    24. R. A. Rigby & D. M. Stasinopoulos, 2005. "Generalized additive models for location, scale and shape," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 54(3), pages 507-554, June.
    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. Yilin Dong, 2020. "Determinants of entry: Evidence from new manufacturing firms in the U.S," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1542-1561, December.
    2. 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.
    3. Taner Osman, 2020. "Land use regulations and the dispersion of the IT Industry in the San Francisco Bay area," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1301-1316, October.
    4. Sabina Buczkowska & Nicolas Coulombel & Matthieu Lapparent, 2019. "A comparison of Euclidean Distance, Travel Times, and Network Distances in Location Choice Mixture Models," Networks and Spatial Economics, Springer, vol. 19(4), pages 1215-1248, December.
    5. Kinne, Jan & Resch, Bernd, 2017. "Analysing and predicting micro-location patterns of software firms," ZEW Discussion Papers 17-063, ZEW - Leibniz Centre for European Economic Research.
    6. Ivan Boal-San Miguel & Luis Cesar Herrero-Prieto, 2016. "Where Are the Artists? Analyzing Economies of Agglomeration in Spain," ACEI Working Paper Series AWP-11-2016, Association for Cultural Economics International, revised Oct 2016.
    7. Duch-Brown, Néstor & Rossetti, Fiammetta, 2020. "Digital platforms across the European regional energy markets," Energy Policy, Elsevier, vol. 144(C).
    8. Sabina Buczkowska & Nicolas Coulombel & Matthieu de Lapparent, 2015. "Euclidean distance versus travel time in business location: A probabilistic mixture of hurdle-Poisson models," ERSA conference papers ersa15p1060, European Regional Science Association.
    9. Chandra R. Bhat & Rajesh Paleti & Palvinder Singh, 2014. "A Spatial Multivariate Count Model For Firm Location Decisions," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 462-502, June.
    10. Stéphanie Truchet & Nicolas Mauhe & Marie Herve, 2017. "Veterinarian shortage areas: what determines the location of new graduates?," Review of Agricultural, Food and Environmental Studies, Springer, vol. 98(4), pages 255-282, 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. 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. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    3. repec:tur:wpaper:10 is not listed on IDEAS
    4. Chandra R. Bhat & Rajesh Paleti & Palvinder Singh, 2014. "A Spatial Multivariate Count Model For Firm Location Decisions," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 462-502, June.
    5. Josep-Maria Arauzo-Carod, 2013. "Location Determinants of New Firms: Does Skill Level of Human Capital Really Matter?," Growth and Change, Wiley Blackwell, vol. 44(1), pages 118-148, March.
    6. Roberto Basile & Luigi Benfratello & Davide Castellani, 2012. "Geoadditive models for regional count data: an application to industrial location," ERSA conference papers ersa12p83, European Regional Science Association.
    7. Liviano Solís, Daniel & Arauzo Carod, Josep Maria, 2011. "Industrial Location and Space: New Insights," Working Papers 2072/152137, Universitat Rovira i Virgili, Department of Economics.
    8. 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.
    9. Kinne, Jan & Resch, Bernd, 2017. "Analysing and predicting micro-location patterns of software firms," ZEW Discussion Papers 17-063, ZEW - Leibniz Centre for European Economic Research.
    10. 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.
    11. Jason Brown & Dayton Lambert, 2014. "Location decisions of natural gas extraction establishments: a smooth transition count model approach," Research Working Paper RWP 14-5, Federal Reserve Bank of Kansas City.
    12. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    13. Coll Martínez, Eva, 2018. "Creativity and entrepreneurship: Empirical evidence for Catalonia," Working Papers 2072/306521, Universitat Rovira i Virgili, Department of Economics.
    14. Coll Martínez, Eva & Arauzo Carod, Josep Maria, 2015. "Creative Industries: a Preliminary Insight to their Location Determinants," Working Papers 2072/250133, Universitat Rovira i Virgili, Department of Economics.
    15. Craig W. Carpenter & Anders Van Sandt & Rebekka Dudensing & Scott Loveridge, 2022. "Profit Pools and Determinants of Potential County-Level Manufacturing Growth," International Regional Science Review, , vol. 45(2), pages 188-224, March.
    16. Elisabet Viladecans Marsal & Josep Maria Arauzo Carod, "undated". "Industrial Location at the Intra-metropolitan Level: A Negative Binomial Approach," Studies on the Spanish Economy 224, FEDEA.
    17. 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.
    18. Coll-Martínez, Eva, 2019. "Creative industries and firm creation: disentangling causal effects through historical cultural associations," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 43, pages 19-39.
    19. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2016. "Regional determinants of firm entry in a developing country," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 259-279, June.
    20. Eva Coll-Martínez & Josep-Maria Arauzo-Carod, 2017. "Creative milieu and firm location: An empirical appraisal," Environment and Planning A, , vol. 49(7), pages 1613-1641, July.
    21. Simon Falck & Hans Westlund, 2013. "Regional Grants And Fdi Location: Evidence From Swedish Regional Policy Programs 2002-2009," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 7(1), pages 36-68, JUNE.

    More about this item

    Keywords

    C21; L26; R12;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    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:spr:anresc:v:50:y:2013:i:2:p:515-534. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.