Economics at your fingertips  

Location Theories and Business Location Decision: A Micro-Spatial Investigation of a Nonmetropolitan Area in Canada

Jean Dubé, Cédric Brunelle and Diègo Legros
Additional contact information
Cédric Brunelle: Institut National de la recherche scientifique (INRS), Canada
Diègo Legros: Université de Bourgogne, France

The Review of Regional Studies, 2016, vol. 46, issue 2, 143-170

Abstract: This paper draws on location theories to statistically identify the relationship between the location of individual business establishments and the characterization of their local economic environment. Taking a microspatial perspective, the paper develops indicators from distance-based measures (DBM) to serve as independent variables in a discrete choice model (DCM). Using a 2006 database of individual business establishments in the Lower-St-Lawrence region-a coherent, nonmetropolitan subsystem of cities in the province of Québec, Canada- we provide an empirical analysis of the determinants of individual establishments' location decisions in relation to their main economic activity within a random utility model (RUM) framework. The results show that distance to nearby centers, co-location (specialization), and the size of establishments are statistically related to location decisions. However, unlike previous studies, it is also found that discrete location choices of business establishments in service industries are not necessarily influenced by economic diversity or co-location, whereas manufacturing firms' location decisions are not impacted by distance to markets. All told, we believe the results provide further evidence of the importance of scale in the study of business location decisions.

Keywords: location decision; spatial distribution; regional development; spatial analysis (search for similar items in EconPapers)
JEL-codes: C21 R11 R12 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) To View On Journal Page To Download Article

Related works:
Working Paper: Location Theories and Business Location Decision: A Micro-Spatial Investigation of a Nonmetropolitan Area in Canada (2016)
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:

Access Statistics for this article

The Review of Regional Studies is currently edited by Amanda Ross and Christopher Yencha

More articles in The Review of Regional Studies from Southern Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Christopher Yencha ().

Page updated 2020-10-15
Handle: RePEc:rre:publsh:v46:y:2016:i:2:p:143-170