Agglomeration economies, accessibility and the spatial choice behavior of relocating firms

A growing body of empirical urban economic studies suggests that agglomeration and accessibility externalities are important sources of the uneven distribution of economic activities across cities and regions. At the same time, little is known about the importance of agglomeration economies for the...

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Main Authors: Michiel de Bok, Frank van Oort
Format: Article
Language:English
Published: University of Minnesota Libraries Publishing 2011-05-01
Series:Journal of Transport and Land Use
Subjects:
Online Access:https://www.jtlu.org/index.php/jtlu/article/view/144
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author Michiel de Bok
Frank van Oort
author_facet Michiel de Bok
Frank van Oort
author_sort Michiel de Bok
collection DOAJ
description A growing body of empirical urban economic studies suggests that agglomeration and accessibility externalities are important sources of the uneven distribution of economic activities across cities and regions. At the same time, little is known about the importance of agglomeration economies for the actual location behavior of firms. This is remarkable, since theories that underlie agglomeration economies are microeconomic in nature. In a case study of the Dutch province of South-Holland, we analyze micro level data to determine the extent to which relocation decisions are dependent on accessibility and agglomeration externalities (when controlling for firm characteristics). These externalities are measured with location attributes for localization- (own-sector) and urbanization economies and proximity to transport infrastructures, respectively. The results confirm that firm relocation behavior is affected much more by firm level attributes (size, age and growth rates) than by the agglomeration and accessibility attributes. Still, accessibility and agglomeration are significantly attached to firm relocations, though they vary over sectors. Own-sector and generalized external economies are more important for a firm’s location choices than proximity to transport infrastructures.
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spelling doaj-art-1c0484cd2aec4fb991766db250b5320f2025-08-20T02:56:40ZengUniversity of Minnesota Libraries PublishingJournal of Transport and Land Use1938-78492011-05-014110.5198/jtlu.v4i1.14483Agglomeration economies, accessibility and the spatial choice behavior of relocating firmsMichiel de Bok0Frank van Oort1SignificanceprofessorA growing body of empirical urban economic studies suggests that agglomeration and accessibility externalities are important sources of the uneven distribution of economic activities across cities and regions. At the same time, little is known about the importance of agglomeration economies for the actual location behavior of firms. This is remarkable, since theories that underlie agglomeration economies are microeconomic in nature. In a case study of the Dutch province of South-Holland, we analyze micro level data to determine the extent to which relocation decisions are dependent on accessibility and agglomeration externalities (when controlling for firm characteristics). These externalities are measured with location attributes for localization- (own-sector) and urbanization economies and proximity to transport infrastructures, respectively. The results confirm that firm relocation behavior is affected much more by firm level attributes (size, age and growth rates) than by the agglomeration and accessibility attributes. Still, accessibility and agglomeration are significantly attached to firm relocations, though they vary over sectors. Own-sector and generalized external economies are more important for a firm’s location choices than proximity to transport infrastructures.https://www.jtlu.org/index.php/jtlu/article/view/144firm locationdiscrete choice modelingaccessibilityurban economics
spellingShingle Michiel de Bok
Frank van Oort
Agglomeration economies, accessibility and the spatial choice behavior of relocating firms
Journal of Transport and Land Use
firm location
discrete choice modeling
accessibility
urban economics
title Agglomeration economies, accessibility and the spatial choice behavior of relocating firms
title_full Agglomeration economies, accessibility and the spatial choice behavior of relocating firms
title_fullStr Agglomeration economies, accessibility and the spatial choice behavior of relocating firms
title_full_unstemmed Agglomeration economies, accessibility and the spatial choice behavior of relocating firms
title_short Agglomeration economies, accessibility and the spatial choice behavior of relocating firms
title_sort agglomeration economies accessibility and the spatial choice behavior of relocating firms
topic firm location
discrete choice modeling
accessibility
urban economics
url https://www.jtlu.org/index.php/jtlu/article/view/144
work_keys_str_mv AT michieldebok agglomerationeconomiesaccessibilityandthespatialchoicebehaviorofrelocatingfirms
AT frankvanoort agglomerationeconomiesaccessibilityandthespatialchoicebehaviorofrelocatingfirms