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Firm Location Choice in Cities: Evidence from China, India, and Brazil

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  • Kala Seetharam Sridhar
  • Guanghua Wan

Abstract

We use large survey data sets of firms provided by the World Bank for China, India, and Brazil—Investment Climate Surveys—to address the important question: what determines the locational choice of firms among cities in these countries. We find that capital cities in all countries are attractive for firms to locate. In India and China, labour-intensive firms tend not to locate in mid-sized or large cities, when compared with smaller ones, perhaps due to higher wage, training and attrition costs.

Suggested Citation

  • Kala Seetharam Sridhar & Guanghua Wan, 2007. "Firm Location Choice in Cities: Evidence from China, India, and Brazil," WIDER Working Paper Series RP2007-56, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2007-56
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