Where Do Manufacturing Firms Locate Their Headquarters?

J. Vernon Henderson and Yukako Ono ()

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: Firms’ headquarters [HQ] support their production activity, by gathering information and outsourcing business services, as well as, managing, evaluating, and coordinating internal firm activities. In search of locations for these functions, firms often separate the HQ function physically from their production facilities and construct stand-alone HQs. By locating its HQ in a large, service oriented metro area away from its production facilities, a firm may be better able to out-source service functions in that local metro market and also to gather information about market conditions for their products. However if the firm locates the HQ away from its production activity, that increases the coordination costs in managing plant activities. In this paper we empirically analyze the trade-off of these two considerations.

Keywords: headquarters; coordination; location decision; manufacturing (search for similar items in EconPapers)
JEL-codes: L60 R0 R12 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2005-10
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://www2.census.gov/ces/wp/2005/CES-WP-05-17.pdf First version, 2005 (application/pdf)

Related works:
Journal Article: Where do manufacturing firms locate their headquarters? (2008)
Working Paper: Where do manufacturing firms locate their headquarters? (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:05-17

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