Firm relocations in the Netherlands: Why do firms move, and where do they go?

Kristin Kronenberg

MPRA Paper from University Library of Munich, Germany

Abstract: This study analyzes determinants of business relocation and identifies regional characteristics which attract relocating firms. Results indicate that the relocation decisions of firms are sector-dependent, and the migratory behavior of firms in knowledge-intensive sectors notably differs from that in less knowledge-intensive sectors. Generally, its age and size keep a firm from relocating, whereas firms paying high average salaries have a higher probability to move out of their present location. Relocating firms are generally attracted by densely populated municipalities with high wage levels, and predominantly service firms are drawn to municipalities which are specialized in the firm’s own sector and appeal to individuals, while they avoid moving to municipalities in which only few sectors are present. Sector-specific wages may either attract, or deter firms, suggesting that this variable may capture both the cost and the quality of the locally available workforce.

Keywords: firm relocation; mobility; location choices; nested logit (search for similar items in EconPapers)
JEL-codes: R11 R30 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-bec, nep-geo, nep-lab, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Firm relocations in the Netherlands: Why do firms move, and where do they go? (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:32147

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