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The firm relocation decision: an empirical investigation

A.E. Brouwer, Ilaria Mariotti and Jos van Ommeren ()
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A.E. Brouwer: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 23, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: In the current paper, the determinants of firm relocation behaviour in twenty-one countries during the period 1997-1999 are analyzed. We demonstrate that internal growth factors measured by increases, but also decreases, in the workforce induce firm relocation. Firms that serve larger markets relocate more often. lt is also demonstrated that relocations are often a result of acquisitions, mergers and take-overs, which are a consequence of external growth.

Keywords: Firm relocation; Mergers (search for similar items in EconPapers)
JEL-codes: R30 (search for similar items in EconPapers)
Date: 2003
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