Firm relocation and age-dependent reliance on agglomeration externalities

This paper explores the age-dependent reliance on agglomeration externalities from a dynamic perspective by investigating the determinants of manufacturing establishments’ relocation decisions at the stages of the initial and the post-initial relocations. The relocation decisions are conceptually split into those on whether to relocate and where to relocate, specified by a nested-logistic model structure. The results indicate that manufacturing establishments’ preference to intra-industry agglomeration changes non-monotonically during their lifetime. While they prefer to stay in or move into municipalities characterized by the own-industry agglomeration in their initial relocation decision, they shun the intra-industry agglomeration in the stages of post-initial relocation. These findings suggest that to achieve the goal of industrial decentralization, policies to induce incumbent firms to relocate into rural areas could be more effective than those to attract start-up firms in peripheral area because they have lower dependence on agglomeration externalities.     

Firm relocation decisions in The Netherlands: An ordered logit approach

This article explores the determinants of firm migration in The Netherlands. First, based on the existing literature a theoretical framework is developed. Second, based on aggregate data firm relocation processes in The Netherlands are discussed in terms of numbers, sectoral composition, origins and destinations (regions), distance moved and employments effects. In the third part a formal model will be tested using individual data of firms. The relocation decisions of individual firms will be related to firm and location characteristics by means of an ordered logit model. The results indicate that the decision to relocate is mainly determined by firm internal factors and to a lesser extent by site related factors. Received 1 July 1999 / Accepted 28 November 1999     

Firm relocations in the Netherlands: Why do firms move,and where do they go?*

This study analyses determinants of business relocation and identifies regional characteristics which attract relocating firms. Results indicate that the relocation decisions of firms are sector‐dependent, and the migratory behaviour of firms in knowledge‐intensive sectors notably differs from that in less knowledge‐intensive sectors. Predominantly low‐tech and medium‐low‐tech manufacturing and less knowledge‐intensive service firms paying high average salaries have a higher probability to move out of their present location. For less knowledge‐intensive service firms, the average municipal wage negatively affects their propensity to relocate, while those located in municipalities with high sector‐specific wages have an increased likelihood to move. Relocating firms are generally attracted by densely populated municipalities with high wage levels, and primarily service firms are drawn to municipalities which are specialized in the firm's own sector and appeal to individuals. Sector‐specific wages may either attract, or deter firms, suggesting that this variable may capture both the cost and the quality of the locally available workforce.     

The firm relocation decision: An empirical investigation

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. It is also demonstrated that relocations are often a result of acquisitions, mergers and take-overs, which are a consequence of external growth.The authors would like to thank Jouke van Dijk, Leo Van Wissen and Piet Pellenbarg of the University of Groningen, the Netherlands, for their helpful suggestions and comments as well as the two anonymous referees for their useful comments.     

Falling commuting costs, amenity advantages, and suburbanization

The goal of this paper is to understand the direct and indirect effects (through impacting the quantity and quality of local public good in the communities) of falling commuting costs (per unit of distance) on suburbanization. A simple model for a monocentric metropolitan area with multiple communities is developed. It is found that whether decreases in commuting costs promote suburbanization or not depends on each community’s quantity and quality of local public good, distance from the central business district, and income distribution of the residents within and across communities. Sufficient conditions for decreases in commuting costs to promote residential decentralization and those for centralization are identified, respectively.     

An analysis of firm relocation patterns in metropolitan Denver, 1974–76

This paper examines geographic patterns of firm relocation in the Denver metropolitan area and factors responsible for the decision to move. A sample of 106 manufacturing, commercial, and service enterprises that relocated between 1974 and 1976 are analyzed. Major relationships between selected business operational characteristics, distance moved, and reasons for relocation are discussed. A comparative analysis of firms is undertaken to examine significant differences in relocation and new site selection factors by origin-destination, type of industry, and type of operation. Firm growth is identified as the primary stimulus for relocations and as an important force limiting spatial searches for alternative locations. Market centrality, site economics, and agglomeration economies are shown to be major constraints governing the selection of new sites. Several major issues associated with governmental policy influences upon firm relocations are considered briefly within the context of the empirical results.     

The impact of uncertainty on production relocation: Implications from a regional perspective

Analysis of the Spanish automobile industry during the global economic crisis of 2008 shows that the number of relocations was comparatively lower than in the period before the crisis. Uncertainty weighs more in relocation decisions than the advantages that multinationals can gain from their operational flexibility. The main drivers of relocation in the sector are conditioned by relocation costs and the risks inherent in such processes. The main implication of the research is that it helps identify vulnerability in relocation under conditions of uncertainty. This is key for defining public policies aiming to avoid the impact of relocation on regions that have traditionally been affected by such processes.     

TECHNICAL CHANGE, LOCATION, AND TRADE

ABSTRACT The difference between the slow adjustment of localized resources and the faster processes of technical change and product renewal causes a relocation pressure on existing production, Introduction of new products, techniques, and establishments is stimulated by opportunities to attain temporary monopoly profits and is restrained by sunk costs in older vintages and competition for local resources;. Introduction is more frequent in nodes with a rich and varied import structure. The process can he modeled as a chain of import, production, and export cycles with relocation. Conditions for introduction and change of location are analyzed by means of a spatial vintage model.     

Exploring the role of the neighbourhood in firm relocation: differences between stayers and movers

Most firm relocations take place across rather short distances, indicating that firms are in general quite place-attached. Still, at the local level, weaker neighbourhoods are characterised by relatively high firm out-migration figures, which may be the result of unfavourable local business conditions. Through a qualitative study of 40 entrepreneurs from weaker neighbourhoods, equally divided between firms that relocated (movers) and firms that did not (stayers), this paper studies to what extent characteristics of the neighbourhood itself influence either past firm relocation decisions or future firm relocation propensity. The results show that the neighbourhood plays only a modest role in firm relocation decisions and propensity, and when neighbourhood characteristics are mentioned as push factors, they are in general outweighed by investments or relocation costs in the decision-making process. Because most firm relocation decisions, both in the past and in the future, are related to aspects of the business property, rather than consequences of other neighbourhood characteristics, maintaining or creating a diverse supply of business properties within a neighbourhood may prevent most potential movers from leaving the neighbourhood much more than neighbourhood liveability improvement measures.     

The monetary subjective health evaluation for commuting long distances in Chile: A latent class analysis

Long-distance commuting (LDC) is a growing phenomenon in specialized countries in extractive industries such as Chile. There has also been a growing concern about the potential impacts on the health of long-distance commuters. This paper formalizes the relationship between commuting distance and self-assessed health status and shows the monetary valuation of health costs for commuting long distances using a latent class approach. This econometric approach allows us to capture both preference and threshold heterogeneity. The results show that there are two classes of workers: the first group is not sensitive to commuting distance, whereas the monetary valuation of workers in the second group is equivalent to CLP $431 (US$0.68).     

International relocation of production plants in MNEs: Is the enemy in our camp?

The literature has argued that low efficiency in comparison with other competitors in the same sector increases the probability of international relocation. In this paper, we argue that, in order to explain production relocation, it is important to consider not only the plant's efficiency in comparison with competing plants, which we shall call external rivalry, but also in comparison with other plants in the same group, to be called internal rivalry. An empirical analysis that focuses on automobile parts manufacturing plants belonging to MNEs in Spain, confirms that both types of rivalry should be considered and that internal rivalry plays a greater part than external rivalry in international relocation decisions.     

MTO: A residential relocation demonstration program in the United States

This article provides an overview of an experimental residential relocation program sponsored by the U.S. Department of Housing and Urban Development known as Moving to Opportunity (MTO), currently in operation in five U.S. cities: Baltimore, Boston, Chicago, Los Angeles, and New York. Because families are randomly assigned to three groups, each of which receives a different bundle of housing services, MTO provides a unique opportunity to learn more about the effects of concentrated urban poverty on the outcomes of families. Yet residential relocation can be an effective anti-poverty strategy only if families successfully relocate and if their new neighborhoods translate into improved labor-market, educational, or other outcomes. We illustrate the potential as well as the limits of residential relocation policies by focusing on the relationship between the housing market and educational opportunities in the Baltimore demonstration site. Helen F. Ladd is Professor of Public Policy Studies and Economics at Duke University. Much of her current research focuses on education policy, particularly performance-based approaches to reforming schools. She is the editor ofHolding Schools Accountable: Performance-Based Reform in Education (Brookings Institution, May, 1996). She currently co-chairs a National Academy of Sciences Committee on Education Finance: Equity, Adequacy, and Productivity. Jens Ludwig is Assistant Professor of Public Policy at Georgetown University.     

Economic impacts of subsidized housing relocation

In recent years increased emphasis has been placed on use of “tenant-based” housing subsidies for acquisition of market-rate housing that is more economically and racially integrated than traditional “project-based” public housing. In this article, we model the short-term economic effects upon various groups of a hypothetical program in which low-income families move from inner-city public housing to spatially dispersed Section 8 rental housing. Using cross-section data from the Chicago region, impacts are computed for two of these groups. Preliminary results indicate that the short-term net economic impact of this hypothetical housing relocation is negative, that these impacts have a spatial character, and that there is a potential tradeoff between tenant benefits, housing subsidies from society and housing integration. Received: 20 January 1998 / Accepted: 30 November 1998     

中国城市的郊区化与公交导向开发

中国大城市的郊区化使得许多居民被安置在比他们以前居住地可达性更差的地方,而需要采用机动化方式出行。基于对最近才迁居到上海郊区三个街区的居民所进行的当前出行及回顾以前出行的调查数据,研究了迁居至外围地区对就业可达性、通勤方式选择和通勤时耗的影响。发现:迁居后,居民的就业可达性下降很快,与此相伴随的是机动化出行比例及通勤时间的大幅度提高。然而,也发现:迁居到郊区地铁站附近的居民就业可达性下降的较少,而且对于许多居民来说,如此迁居正鼓励居民出行方式从非机动车方式转向公共交通方式。我们得出结论认为:对于把快速郊区化的中国城市引导走向更持续的道路,可寄予公交为导向的开发模式以很高的期望。     

The impact of Hudson‐Bergen Light Rail on residential property appreciation

This paper analyses the impact of the Hudson‐Bergen Light Rail (HBLR) on residential property prices. Unlike similar studies that use a hedonic model with cross‐sectional data, this one uses repeat‐sales data of properties that sold at least twice between 1991 and 2009. It shows how proximity to the nearest HBLR station, relative accessibility gains across stations, and anticipation of the commencement date of the HBLR station influence home price change. Our results show that properties near the two commuting stations farthest from the revitalized central business district experienced high appreciation. It also reveals that different accessibility gains across areas were produced based on the availability of existing public transportation options. Using a negative–exponential gradient, we find that these higher appreciation rates tended to dissipate about 1/4 mile (402 m) from stations. This supports that properties around urban commuting stations enjoy higher marginal benefits through improved transit accessibility and reduced transportation costs as Alonso's model predicts.     

Travel-based residential self-selection: A qualitatively improved understanding from Norway

By integrating both quantitative and qualitative materials, this paper sheds new light on the role of travel-based residential preferences in residential location choice and the implications for land-use and travel behavior research. In the two Norwegian metropolitan areas of Oslo and Stavanger, movers who select their residence based on travel attitudes relocate to inner-city districts but not to suburban areas. For those who move to suburban areas, criteria other than travel are more important. Residential self-selection toward transit-rich neighborhoods is more prominent in the large, monocentric Oslo region than in the smaller, polycentric Stavanger metropolitan area where transit provision is generally poorer. Travel-based residential self-selection may affect the effect estimates of built environment characteristics somewhat for travel mode choice, less so for travel distance in general, and hardly at all for commuting distance. Overall, there is no strong empirical basis in support of controlling for travel-based residential self-selection in land-use and travel behavior research in a Norwegian urban context. Built environment characteristics exert substantial impacts on intra-metropolitan travel distances and modes, regardless of residential self-selection.     

Industrial configuration in an economy with low transportation costs

We examine how the spatial economy with multiple industries is shaped when interregional trade costs and intraregional commuting costs are low. All industries are characterized by increasing returns to scale and monopolistic competition, and they are differentiated by their trade costs and the degree of intra-industry competition measured by their firm numbers. We find some distinct rules in industrial location. First, at most, one industry disperses, while others agglomerate in a region according to their ratios of relative trade costs to firm numbers. Second, industries with stronger competition constitute a smaller region, while those with higher trade costs compose a larger region. The results are consistent with the classical Weberian location theory and suggest that the degree of intra-industry competition also becomes an essential factor to determine industrial location when transportation costs are small. Finally, the population differential between the regions monotonically decreases in the relative commuting cost.     

对环保搬迁居民安置区的低碳和节能设计探索

论述了建设低碳安置区的必要性和安置区设计的环保节能要求,分别针对国内外低碳社区的设计理念及环保技术进行了介绍,指出目前国内安置区节能建设应从初期选址及合理分配投资方面入手,循序渐进,逐步实现低碳、节能、减排目标。     

A view on optimal urban growth controls

Sasaki (1998) generalizes the urban-growth-control model developed by Brueckner and Lai (1996) (B-L, hereafter) and concludes that the optimal urban-growth control is less (more) stringent than the B-L model when an agglomeration effect (public-good-provision effect) is considered. However, this paper here proves that the optimal urban-growth control may or may not be more stringent than the B-L model when the agglomeration effect or (and) the public-good-provision effect is (are) considered. This result sharply differs from that of Sasaki's model. The intuition behind it is that the increase in commuting costs for landowners due to renter-immigration is overlooked in Sasaki's model. Received: February 2001/Accepted: September 2001