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Firm location choice in cities: Evidence from China, India, and Brazil

Kala Sridhar and Guanghua Wan

China Economic Review, 2010, vol. 21, issue 1, 113-122

Abstract: This paper contributes to the industrial location literature by examining why industry locates or refrains from locating in large, medium and small cities of India, China and Brazil using firm-level data from the World Bank. Results from ordered logistic regressions indicate that capital cities are not attractive for firms to locate, when they are large. In India and China, labor intensive firms do not locate in large cities. Proximity to inputs has a positive impact on firm location in China. While availability of inputs has a positive impact on firm location in India, the availability of raw materials has a negative impact on firm location in Brazil. Firms established in post-reform period in India tend to locate in large cities; in China, these firms avoid medium and large cities. The implications for urban governance in these countries are discussed.

Keywords: India; China; Brazil; Location; choice; Industrial; policy (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Working Paper: Firm Location Choice in Cities: Evidence from China, India, and Brazil (2007) Downloads
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