Firm relocation: state of the art and research prospects

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This paper deals with firm relocation. Firm relocation is a particular form of locational adjustment of the firm and one of the possible ways to adjust to changes in markets, preferences of consumers, environmental regulations, technological progress etc. In section 2 we will treat the neo-classical, the behavioural, and the institutional approaches respectively. Next, a historical review of firm relocation research is presented, in section 3. It starts with the "classical studies" of the first post-war period, followed by a description of what can be called the golden era of firm relocation studies according to the large number of studies: the nineteen sixties and seventies. This section ends with an overview of firm relocation studies of the last decades of the previous century. In section 4 we present an example an empirical study that addresses relevant firm relocation for the present era by means of a statistical model estimated on data for individual firms of the Netherlands. We conclude the chapter with a discussion of why and how the firm relocation research frontier can be pushed forward and give suggestions for further research also in relation with policy.
Original languageEnglish
Place of PublicationGroningen
PublisherUniversity of Groningen, SOM research school
Number of pages42
Publication statusPublished - 2002

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