IDEAS home Printed from https://ideas.repec.org/p/mtu/wpaper/11_08.html
   My bibliography  Save this paper

Patterns of business location in Auckland

Author

Listed:
  • David C. Maré

    (Motu Economic and Public Policy Research)

  • Andrew Coleman

    (Motu Economic and Public Policy Research)

Abstract

We investigate the spatial determinants of industrial location and productivity variation within the Auckland Urban Area. For over 300 local areas, we consider the influence on location choice and productivity of proximity to selected infrastructure, local services, and consumption amenities, and of the density and industry composition of local employment. Using data from a microdata panel of firms, we use count data methods to model the location choices of new firms, and production function estimation for productivity estimation. We identify distinct location patterns across industries but, overall, the accessibility and employment composition measures that we examine do not account for industrial location and productivity patterns within Auckland. This increases the challenges of anticipating and planning for future business location patterns.

Suggested Citation

  • David C. Maré & Andrew Coleman, 2011. "Patterns of business location in Auckland," Working Papers 11_08, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:11_08
    as

    Download full text from publisher

    File URL: https://motu-www.motu.org.nz/wpapers/11_08.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paulo Guimarães & Octávio Figueirdo & Douglas Woodward, 2003. "A Tractable Approach to the Firm Location Decision Problem," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 201-204, February.
    2. Leon N. Moses, 1958. "Location and the Theory of Production," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 72(2), pages 259-272.
    3. Philip McCann, 1998. "The Economics of Industrial Location," Advances in Spatial Science, Springer, number 978-3-662-03702-7.
    4. Gilles Duranton & Matthew A. Turner, 2012. "Urban Growth and Transportation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(4), pages 1407-1440.
    5. Josep-Maria Arauzo-Carod, 2007. "Determinants of population and jobs at a local level," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(1), pages 87-104, March.
    6. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    7. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171, Elsevier.
    8. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1999. "The Rise and Decline of the American Ghetto," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 455-506, June.
    9. 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.
    10. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
    11. Richard Fabling & David C Maré, 2015. "Production function estimation using New Zealand’s Longitudinal Business Database," Working Papers 15_15, Motu Economic and Public Policy Research.
    12. William C. Strange, 2009. "Viewpoint: Agglomeration research in the age of disaggregation," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(1), pages 1-27, February.
    13. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    14. David C. Maré & Jason Timmins, 2006. "Geographic concentration and firm productivity," Working Papers 06_08, Motu Economic and Public Policy Research.
    15. Fulong Wu, 1999. "Intrametropolitan FDI firm location in Guangzhou, China A Poisson and negative binomial analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 33(4), pages 535-555.
    16. John P. Blair & Robert Premus, 1987. "Major Factors in Industrial Location: A Review," Economic Development Quarterly, , vol. 1(1), pages 72-85, February.
    17. Mathias Dewatripont & Lars Peter Hansen & Stephen Turnovsky, 2003. "Advances in Economics and Econometrics: Theory and Applications, Eighth World Congress," ULB Institutional Repository 2013/176003, ULB -- Universite Libre de Bruxelles.
    18. Carlino, Gerald A. & Chatterjee, Satyajit & Hunt, Robert M., 2007. "Urban density and the rate of invention," Journal of Urban Economics, Elsevier, vol. 61(3), pages 389-419, May.
    19. Nijkamp, P. & Abreu, M., 2009. "Regional development theory," Serie Research Memoranda 0029, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    20. Ackerberg, Daniel & Caves, Kevin & Frazer, Garth, 2006. "Structural identification of production functions," MPRA Paper 38349, University Library of Munich, Germany.
    21. Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, vol. 64(2), pages 373-389, September.
    22. Philip Mccann & Stephen Sheppard, 2003. "The Rise, Fall and Rise Again of Industrial Location Theory," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 649-663.
    23. Williamson, John & Paling, Richard & Waite, David, 2008. "Assessing Agglomeration Impacts in Auckland: Phase 1," Occasional Papers 08/5, Ministry of Economic Development, New Zealand.
    24. Richard Fabling, 2011. "Keeping it Together: Tracking Firms on New Zealand’s Longitudinal Business Database," Working Papers 11_01, Motu Economic and Public Policy Research.
    25. Robert Murray Haig, 1926. "Toward an Understanding of the Metropolis: II. The Assignment of Activities to Areas in Urban Regions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 40(3), pages 402-434.
    26. Richard Fabling & Arthur Grimes & Lynda Sanderson, 2011. "Any port in a storm? The impact of new port infrastructure on New Zealand exporter behaviour," Reserve Bank of New Zealand Discussion Paper Series DP2011/01, Reserve Bank of New Zealand.
    27. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    28. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
    29. McCann, Philip, 2001. "Urban and Regional Economics," OUP Catalogue, Oxford University Press, number 9780198776451.
    30. Randy Becker & Vernon Henderson, 2000. "Effects of Air Quality Regulations on Polluting Industries," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 379-421, April.
    31. Edward L. Glaeser, 2010. "Introduction to "Agglomeration Economics"," NBER Chapters, in: Agglomeration Economics, pages 1-14, National Bureau of Economic Research, Inc.
    32. Edward L. Glaeser, 2010. "Agglomeration Economics," NBER Books, National Bureau of Economic Research, Inc, number glae08-1.
    33. Ron A. Boschma & Koen Frenken, 2006. "Why is economic geography not an evolutionary science? Towards an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 273-302, June.
    34. David C. Maré & Daniel J. Graham, 2009. "Agglomeration Elasticities in New Zealand," Working Papers 09_06, Motu Economic and Public Policy Research.
    35. Richard Blundell & James L. Powell, 2001. "Endogeneity in nonparametric and semiparametric regression models," CeMMAP working papers 09/01, Institute for Fiscal Studies.
    36. Deitz, Richard, 1998. "A Joint Model of Residential and Employment Location in Urban Areas," Journal of Urban Economics, Elsevier, vol. 44(2), pages 197-215, September.
    37. Williamson, John & Paling, Richard & Staheli, Ramon & Waite, David, 2008. "Assessing Agglomeration Impacts in Auckland: Phase 2," Occasional Papers 08/6, Ministry of Economic Development, New Zealand.
    38. Roberta Capello & Peter Nijkamp (ed.), 2009. "Handbook of Regional Growth and Development Theories," Books, Edward Elgar Publishing, number 12874.
    39. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    40. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September.
    41. Terza, Joseph V., 1998. "Estimating count data models with endogenous switching: Sample selection and endogenous treatment effects," Journal of Econometrics, Elsevier, vol. 84(1), pages 129-154, May.
    42. Paul Krugman, 1998. "Space: The Final Frontier," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 161-174, Spring.
    43. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 775-805.
    44. Richard W. Blundell & Richard J. Smith, 1989. "Estimation in a Class of Simultaneous Equation Limited Dependent Variable Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(1), pages 37-57.
    Full references (including those not matched with items on IDEAS)

    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. David C. Maré & Andrew Coleman, 2011. "Estimating the determinants of population location in Auckland," Working Papers 11_07, Motu Economic and Public Policy Research.
    2. Maré, David C. & Graham, Daniel J., 2013. "Agglomeration elasticities and firm heterogeneity," Journal of Urban Economics, Elsevier, vol. 75(C), pages 44-56.
    3. 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.
    4. Amezcua, Alejandro & Ratinho, Tiago & Plummer, Lawrence A. & Jayamohan, Parvathi, 2020. "Organizational sponsorship and the economics of place: How regional urbanization and localization shape incubator outcomes," Journal of Business Venturing, Elsevier, vol. 35(4).
    5. William R. Kerr & Scott Duke Kominers, 2015. "Agglomerative Forces and Cluster Shapes," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 877-899, October.
    6. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon & Sébastien Roux, 2010. "Estimating Agglomeration Economies with History, Geology, and Worker Effects," NBER Chapters, in: Agglomeration Economics, pages 15-66, National Bureau of Economic Research, Inc.
    7. David C. Maré & Daniel J. Graham, 2009. "Agglomeration Elasticities in New Zealand," Working Papers 09_06, Motu Economic and Public Policy Research.
    8. David C. Maré & Andrew Coleman & Ruth Pinkerton, 2011. "Patterns of population location in Auckland," Working Papers 11_06, Motu Economic and Public Policy Research.
    9. Richard Fabling & David C Maré, 2015. "Production function estimation using New Zealand’s Longitudinal Business Database," Working Papers 15_15, Motu Economic and Public Policy Research.
    10. Nguyen, Huong, 2016. "Does Proximity to Foreign Invested Firms Stimulate Productivity Growth of Domestic Firms? Firm-level Evidence from Vietnam," Papers 1001, World Trade Institute.
    11. Ricardo A. López & Jens Südekum, 2009. "Vertical Industry Relations, Spillovers, And Productivity: Evidence From Chilean Plants," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 721-747, October.
    12. Padeiro, Miguel, 2013. "Transport infrastructures and employment growth in the Paris metropolitan margins," Journal of Transport Geography, Elsevier, vol. 31(C), pages 44-53.
    13. Hoang, Manh Cuong & Schiller, Daniel, 2023. "Which firms benefit the most from agglomeration? New evidence from an emerging country with consistent measure of productivity," Journal of Asian Economics, Elsevier, vol. 86(C).
    14. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    15. Tobias Schlegel & Curdin Pfister & Dietmar Harhoff & Uschi Backes-Gellner, 2022. "Innovation effects of universities of applied sciences: an assessment of regional heterogeneity," The Journal of Technology Transfer, Springer, vol. 47(1), pages 63-118, February.
    16. Jofre-Monseny, Jordi & Marín-López, Raquel & Viladecans-Marsal, Elisabet, 2011. "The mechanisms of agglomeration: Evidence from the effect of inter-industry relations on the location of new firms," Journal of Urban Economics, Elsevier, vol. 70(2), pages 61-74.
    17. Jonathan Jones, 2017. "Agglomeration economies and the location of foreign direct investment: A meta-analysis," Journal of Regional Science, Wiley Blackwell, vol. 57(5), pages 731-757, November.
    18. Abebe, Girum & McMillan, Margaret & Serafinelli, Michel, 2022. "Foreign direct investment and knowledge diffusion in poor locations," Journal of Development Economics, Elsevier, vol. 158(C).
    19. David Christopher Maré & Richard Fabling, 2013. "Productivity and Local Workforce Composition," Advances in Spatial Science, in: Riccardo Crescenzi & Marco Percoco (ed.), Geography, Institutions and Regional Economic Performance, edition 127, pages 59-76, Springer.
    20. Giulio Cainelli & Andrea Fracasso & Giuseppe Vittucci Marzetti, 2015. "Spatial agglomeration and productivity in Italy: A panel smooth transition regression approach," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 39-67, November.

    More about this item

    Keywords

    Urban Economics; Industrial location; count data models; productivity; Agglomeration;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • 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:mtu:wpaper:11_08. 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: Maxine Watene (email available below). General contact details of provider: https://edirc.repec.org/data/motuenz.html .

    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.