| Author: | Head, K. Ries, J. Swenson, D. |
| Title: | Agglomeration benefits and location choice: evidence from Japanese manufacturing investments in the US |
| Journal: | Journal of International Economics
1995 : MAY, VOL. 38:3/4, p. 223-248 |
| Index terms: | JAPAN MANUFACTURING INVESTMENT USA |
| Language: | eng |
| Abstract: | Recent theories of economic geography suggest that firms in the same industry may be drawn to the same locations because proximity generates positive externalities or "agglomeration effects". Under this view, chance events and government inducements can have a lasting influence on the geographical pattern of manufacturing. This paper examines the location choices of 751 Japanese manufacturing plants built in the United States since 1980. Conditional logit estimates support the hypothesis that industry-level agglomeration benefits play an important role in location decisions. |
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