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Firm Size and Geographical Aggregation: An Empirical Appraisal in Industrial Location
Arauzo Carod, Josep Maria; Manjón Antolín, Miguel C.
Universitat Rovira i Virgili. Departament d'Economia
This paper assesses empirically the importance of size discrimination and disaggregate data for deciding where to locate a start-up concern. We compare three econometric specifications using Catalan data: a multinomial logit with 4 and 41 alternatives (provinces and comarques, respectively) in which firm size is the main covariate; a conditional logit with 4 and 41 alternatives including attributes of the sites as well as size-site interactions; and a Poisson model on the comarques and the full spatial choice set (942 municipalities) with site-specific variables. Our results suggest that if these two issues are ignored, conclusions may be misleading. We provide evidence that large and small firms behave differently and conclude that Catalan firms tend to choose between comarques rather than between municipalities. Moreover, labour-intensive firms seem more likely to be located in the city of Barcelona. Keywords: Catalonia, industrial location, multinomial response model. JEL: C250, E30, R00, R12
2001
Localització industrial
Models economètrics
Catalunya
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Working Paper
Documents de treball del Departament d'Economia;2001-5
         

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