(Optimal) spatial aggregation in the determinants of industrial location

(Optimal) spatial aggregation in the determinants of industrial location Empirical studies on the determinants of industrial location typically use variables measured at the available administrative level (municipalities, counties etc.). However, this amounts to assuming that the effects that these determinants may have on the location process do not extend beyond the geographical limits of the selected site. We address the validity of this assumption by comparing results from standard count data models with those obtained by calculating the geographical scope of the spatially varying explanatory variables using a wide range of distances and alternative spatial autocorrelation measures. Our results reject the usual practice of using administrative records as covariates without making some kind of spatial correction. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

(Optimal) spatial aggregation in the determinants of industrial location

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Publisher
Springer Journals
Copyright
Copyright © 2011 by Springer Science+Business Media, LLC.
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-011-9335-6
Publisher site
See Article on Publisher Site

Abstract

Empirical studies on the determinants of industrial location typically use variables measured at the available administrative level (municipalities, counties etc.). However, this amounts to assuming that the effects that these determinants may have on the location process do not extend beyond the geographical limits of the selected site. We address the validity of this assumption by comparing results from standard count data models with those obtained by calculating the geographical scope of the spatially varying explanatory variables using a wide range of distances and alternative spatial autocorrelation measures. Our results reject the usual practice of using administrative records as covariates without making some kind of spatial correction.

Journal

Small Business EconomicsSpringer Journals

Published: Apr 10, 2011

References

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