Firm relocation patterns incorporating spatial interactions

Cao Nguyen (), Kazushi Sano (), Tu Tran () and Tan Doan ()

The Annals of Regional Science, 2013, vol. 50, issue 3, 685-703

Abstract: This paper developed a relocation pattern for analyzing decisions regarding the relocation process of individual firms by using discrete choice models. Within this framework, three decision points in the relocation process are maintained in the micro-simulation modeling. The first decision that is move or non-move is modeled by using a binary logit form with the outcome of the probability of moving. The second decision, choosing the destination region, is modeled as a multinomial logit model with the outcome of the conditional probability of choosing a region. The final decision, choosing the new zone, is estimated by considering the spatial interactions. For example, the correlation among firms in the deterministic term and the spatial correlation among zones in the error term are considered by mixed logit models. The results of the study indicated that large firms and older firms have a lower probability of relocation. Moreover, this research found out that migrating firms are more attracted in regions with high accessibility. Finally, spatial factors and land prices in a given zone strongly affect the zone choice decision-making process of all firms. Copyright Springer-Verlag 2013

Keywords: R14 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://hdl.handle.net/10.1007/s00168-012-0523-3 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:anresc:v:50:y:2013:i:3:p:685-703

Ordering information: This journal article can be ordered from
http://link.springer.com/journal/168

DOI: 10.1007/s00168-012-0523-3

Access Statistics for this article

The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

More articles in The Annals of Regional Science from Springer, Western Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().