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The determinants of location choice: Single plants versus multi‐plants *
Author(s) -
Mota Isabel,
Brandão António
Publication year - 2013
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5957.2011.00401.x
Subject(s) - economies of agglomeration , urbanization , workforce , economic geography , economics , market size , portuguese , capital (architecture) , land use , business , natural resource economics , industrial organization , microeconomics , economic growth , geography , international economics , ecology , linguistics , archaeology , biology , philosophy
This paper adopts a count data model to explore the distinction between single plant and multi‐plant location choices. It is hypothesized that start‐up location decisions would be determined by supply variables (land, labour and capital costs, workforce and technological characteristics); demand variables (market size and market accessibility) and agglomeration economies. We use plant data and focus on location choices within Portuguese municipalities. Our research shows that new multi‐plants are particularly sensitive to urbanization economies, land costs and the size of the local market, while new single plants are more responsive to labour costs, both localization and urbanization economies and accessibility to main markets.