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Why Do Firms Relocate? Lessons from a Regional Analysis

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  • Christophe Carrincazeaux
  • Marie Coris

Abstract

In recent years, the qualitative evolution of relocations (from low-cost offshoring to more technologically intensive relocations) has become a new concern in political debate. Focusing on these new trends, the aim of this paper is to better understand relocations from the firms' point of view. The concept of relocation is reformulated by adopting a broad definition considering it as a specific dimension of firms' mobility options. We consider three analytical dimensions: relocation as a productive problem ("relational space" for coordination), relocation in a territorial dimension ("geographical space") and relocation as a complex decision-making process ("political space"). On this basis, we combine two strands of literature (economics of proximity and institutional approaches of the firm) for a better understanding of the decision-making process and the resulting diversity of situations. The framework is finally applied to the specific case of the Aquitaine region of southwest France in order to identify the conditions of anchoring and mobility of firms in spatial terms. Our aim is to show that the decision-making process of relocations cannot be reduced to a simple cost calculation, leaving room for local public policies.

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  • Christophe Carrincazeaux & Marie Coris, 2015. "Why Do Firms Relocate? Lessons from a Regional Analysis," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1695-1721, September.
    • Handle: RePEc:taf:eurpls:v:23:y:2015:i:9:p:1695-1721
    DOI: 10.1080/09654313.2015.1048186
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    References listed on IDEAS

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    1. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, April.
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    Cited by:

    1. Wang, Weilong & Wang, Jianlong & Wu, Haitao, 2024. "The impact of energy-consuming rights trading on green total factor productivity in the context of digital economy: Evidence from listed firms in China," Energy Economics, Elsevier, vol. 131(C).
    2. Rongjun Long & Wei Lang & Xun Li, 2020. "Does Institutional Embeddedness Promote Regional Enterprises’ Migration? An Empirical Analysis Based on the “Double Transfer” Strategy in Guangdong, China," Sustainability, MDPI, vol. 12(7), pages 1-21, April.
    3. Sohns Franziska & Wójcik Dariusz, 2023. "Do they do as they say?: Analysing the Impact of Brexit on Relocation Intentions in the UK’s FinTech Industry," ZFW – Advances in Economic Geography, De Gruyter, vol. 67(2-3), pages 105-126, August.

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