Firm location, interaction, and local characteristics: A case study for Madrid’s electronics sector



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Gómez de Antonio, Miguel and Sweeney, Stuart (2018) Firm location, interaction, and local characteristics: A case study for Madrid’s electronics sector. Papers in Regional Science, 97 (3). pp. 663-685. ISSN 1056-8190

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We use geo-referenced establishment data to estimate parameters of a Gibbs model. The statistical model is used to decompose the conditional intensity of the spatial point process into trend and interaction components. The trend captures covariates related to firms’ costs, accessibility to public transport infrastructures, to technical universities and to cultural and recreational facilities. The ability to specify a Geyer interaction component captures the existence of additional spillovers providing a deeper insight into inter-establishment spatial dynamics. The results challenge some of the outcomes of the inter-urban industrial location literature, confirming that spatial aggregation compromises results in studies of business location. Firms’ location decisions are dominated by site costs, with transportation costs being much less of a consideration; universities geographical knowledge spillovers are confirmed for large establishments; and amenities are unlikely to be important location factors.

Item Type:Article
Uncontrolled Keywords:Industrial location, Gibbs models, Agglomeration economies, Local public goods
Subjects:Social sciences > Economics > Econometrics
Social sciences > Economics > Public economy
Social sciences > Economics > Business enterprises
JEL:C49, C51, H41, H54, R38
ID Code:60367
Deposited On:07 May 2020 07:55
Last Modified:21 Oct 2020 12:49

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