Industrial Location and Spatial Dependence: An Empirical Application

Daniel Liviano and Josep-Maria Arauzo-Carod

Regional Studies, 2014, vol. 48, issue 4, 727-743

Abstract: Liviano D. and Arauzo-Carod J.-M. Industrial location and spatial dependence: an empirical application, Regional Studies . This paper tries to resolve some of the main shortcomings in the empirical literature on location decisions for new plants, that is, spatial effects and over-dispersion. Spatial effects are omnipresent, being a source of over-dispersion in the data as well as a factor shaping the functional relationship between the variables that explain a firm's location decisions. Using count data models, empirical researchers have dealt with over-dispersion and excess zeros by developments of the Poisson regression model. This study aims to take this a step further by adopting Bayesian methods and models in order to tackle the excess of zeros, spatial and non-spatial over-dispersion, and spatial dependence simultaneously. Data for Catalonia (Spain) are used and location determinants are analysed to that end. The results show that spatial effects are determinant. Additionally, over-dispersion is decomposed into an unstructured independently and identically distributed (i.i.d.) effect and a spatially structured effect.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1080/00343404.2012.675054 (text/html)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Industrial Location and Spatial Dependence: An Empirical Application (2020)
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: https://EconPapers.repec.org/RePEc:taf:regstd:v:48:y:2014:i:4:p:727-743

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CRES20

DOI: 10.1080/00343404.2012.675054

Access Statistics for this article

Regional Studies is currently edited by Ivan Turok

More articles in Regional Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().