THE LOCATION OF NONMETROPOLITAN HIGH†TECH INDUSTRIES: A Comparison of Regional Determinants

John E. Keith and David L. Barkley

Review of Urban & Regional Development Studies, 1991, vol. 3, issue 1, 60-77

Abstract: A study of the location of three classifications of high†tech industries in rural areas was undertaken using ordinary least squares, Tobit, and a two†step estimation procedure suggested by Heckman (1976). The results indicate that the location decision for high tech firms is influenced primarily by the county population, adjacency to an SMSA, and the expenditures on public infrastructure (exclusive of education expenditures). However, location near interstate highways was generally not a significant factor. Results were similar between branch and unit (single ownership) plants. Some differences in signs of orders of magnitude occurred among the estimation procedures. Making a choice between Tobit and Heckman approaches depends upon the goal of the research.

Date: 1991
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