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The determinants of location choices for food processing plants
Author(s) -
Lopez Rigoberto A.,
Henderson a R.
Publication year - 1989
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(198911)5:6<619::aid-agr2720050607>3.0.co;2-a
Subject(s) - incentive , economics , telephone survey , public economics , industrial organization , business , marketing , microeconomics
This article examines the determinants of location choices for new food processing plants using the results of a telephone survey. Six categories of business climate factors (market, infrastructure, labor, personal, environmental regulation, and fiscal policy) containing 41 specific location factors are considered. The survey responses are analyzed in their entirety, by types of raw products processed, and by plant size. Findings indicate that plant location choices are driven by market and infrastructural factors. Fiscal policies such as tax and development incentives are insignificant. Implications of the findings for devising incentive packages to attract new plants are given.