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Firms' evaluation of location quality: Evidence from East Germany
DIW Berlin.
Technische Universität Dresden, Germany.
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Center for Family Enterprise and Ownership (CeFEO).ORCID iD: 0000-0001-5776-9396
2016 (English)In: Jahrbücher für Nationalökonomie und Statistik, ISSN 0021-4027, Vol. 236, no 2, 241-273 p.Article in journal (Refereed) Published
Abstract [en]

Our study provides evidence for firms' evaluation of location quality. We use a 2004 survey of 6,000 East German firms that contained questions on the importance and assessment of 15 different location factors ranging from closeness to customers and suppliers, transport infrastructure, and proximity to research institutions and universities, as well as questions about the local financial institutions and region's "image". The results show (1) a great dealof heterogeneity in terms of which firm- or regional-level characteristics are important in the evaluation of a specic location factor, (2) that the model's explanatory power is, overall, low and thus neither location characteristics nor internal factors are fully reected in the perceptions, (3) that a firm's business situation and whether a location factor is considered important have explanatory power for perception. One policy-relevant conclusion that we derive from these findings is that location policy should consider firms' perception of a specific location in addition to improving the actual attributes of that location.

Place, publisher, year, edition, pages
2016. Vol. 236, no 2, 241-273 p.
Keyword [en]
Location Factors, Multi-Equation System, Perception Bias, Survey Data
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-28063DOI: 10.1515/jbnst-2015-1014ISI: 000375040600005Scopus ID: 2-s2.0-84960337295Local ID: IHHCeFEOISOAI: oai:DiVA.org:hj-28063DiVA: diva2:857690
Available from: 2015-09-29 Created: 2015-09-29 Last updated: 2017-02-23Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf