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Firms' evaluation of location quality: Evidence from East Germany
DIW Berlin.
TU Dresden.
Jönköping University, Jönköping International Business School, JIBS, Economics.ORCID iD: 0000-0001-5776-9396
2015 (English)Report (Refereed)
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 deal of heterogeneity in terms of which firm- or regional-level characteristics are important in the evaluation of a specific location factor, (2) that the model's explanatory power is, overall, low and thus neither location characteristics nor internal factors are fully reflected 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
Berlin: DIW Berlin , 2015. , 34 p.
Series
Discussion Papers of DIW Berlin, ISSN 1619-4535 ; 1497
Keyword [en]
Location Factors, Multi-Equation System, Perception Bias, Survey Data
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-28064OAI: oai:DiVA.org:hj-28064DiVA: diva2:857692
Available from: 2015-09-29 Created: 2015-09-29 Last updated: 2015-10-08Bibliographically approved

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CiteExportLink to record
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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
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  • asciidoc
  • rtf