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Where do they locate? Firm size and Industrial Location

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  • Josep Maria Arauzo
  • Miquel Manjón

Abstract

Most of economic literature about industrial location patterns donít consider entrant firm size as an explanatory variable of this phenomenon. Nevertheless, empirical research have shown that bigger firms are heavily influenced by economic variables of the cities where they are going to be located (skilled labour, land rent, etc), while smaller firms react to variables related with personal circumstances of the entrepreneur. We contrast this empirical evidence for Catalan cities between the years 1986 and 1996. A conditional logit model is used for test the probability that a city is being chosen by a firm.

Suggested Citation

  • Josep Maria Arauzo & Miquel Manjón, 2001. "Where do they locate? Firm size and Industrial Location," ERES eres2001_106, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2001_106
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    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. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-683, November.
    3. Carlton, Dennis W, 1983. "The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 440-449, August.
    4. Didier Baudewyns, 1999. "La localisation intra-urbaine des firmes: une estimation logit multinomiale," ULB Institutional Repository 2013/9157, ULB -- Universite Libre de Bruxelles.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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