(Optimal) Spatial Aggregation in the Determinants of Industrial Location

Josep Maria Arauzo Carod and Miguel Manjon Antolin
Authors registered in the RePEc Author Service: Josep-Maria Arauzo-Carod

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: Empirical studies on the determinants of industrial location typically use variables measured at the available administrative level (municipalities, counties, etc.). However, this amounts to assuming that the effects these determinants may have on the location process do not extent beyond the geographical limits of the selected site. We address the validity of this assumption by comparing results from standard count data models with those obtained by calculating the geographical scope of the spatially varying explanatory variables using a wide range of distances and alternative spatial autocorrelation measures. Our results reject the usual practice of using administrative records as covariates without making some kind of spatial correction. Keywords: industrial location, count data models, spatial statistics JEL classification: C25, C52, R11, R30

Keywords: Localització industrial; Anàlisi espacial (Estadística); Models economètrics; Economia regional; 332 - Economia regional i territorial. Economia del sòl i de la vivenda (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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Journal Article: (Optimal) spatial aggregation in the determinants of industrial location (2012)
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