Start-ups and relocations: Manufacturing plant location in Portugal

Adelheid Holl

Economics of Governance, 2004, vol. 83, issue 4, 649-668

Abstract: This article analyses the spatial pattern of plant start-ups and plant relocations in Portugal between 1986 and 1997. The results show that start-ups and relocations are not attracted by the same set of location characteristics. The probability of a plant start-up is more strongly related to increases in local market size and labour force qualification, lower labour costs, and a more diversified economic environment. In contrast, relocations show a greater preference for areas with better national market accessibility, availability of producer services and a larger industrial basis. Relocations are also much more strongly attracted by the provision of inter-regional motorways. The results are consistent with the assertion that firms value location attributes differently over the plant life cycle. Copyright Springer-Verlag Berlin/Heidelberg 2004

Keywords: Manufacturing location; relocation; agglomeration economies; transport (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1007/s10110-004-0218-y

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