Determinants of Regional Migration by Manufacturing Firms

Robert A Nakosteen and Michael Zimmer

Economic Inquiry, 1987, vol. 25, issue 2, 351-62

Abstract: Economists have extensively examined the role of labor migration in restoring wage and price equilibria among dispersed markets. A muc h smaller literature addresses another dimension of mobility-regional migration of entrepreneurs and firms. Here the authors examine a mod el of the firm's decision to migrate, utilizing the Duns Market Ident ifiers data file. The model includes an equation describing the migra tion decision to determine whether measured characteristics of the fi rm's environment explain firm migration. Additional equations explain particular outcomes of migration: the growth in sales during a fixed interval after a move and the corresponding growth of employment. Copyright 1987 by Oxford University Press.

Date: 1987
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