Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46255
Authors: 
Defever, Fabrice
Year of Publication: 
2010
Series/Report no.: 
CESifo working paper: Trade Policy 3304
Abstract: 
Using six years of firm-level data covering 224 regions of the enlarged European Union, we evaluate the importance to a firm of locating its activities (production, headquarters, R&D, logistics and sales) close together. We find that, after controlling for regional characteristics, being closely located to a previous investment positively affects firm location choice. However, the impact of distance is dependent on the type of investment (production or service). While within-firm co-location is important for both service and production activities, only production plants are likely to be located close to prior production investments. In this latter case, national borders have a surprisingly positive effect, increasing the probability of choosing a nearby location, but on the other side of the border.
Subjects: 
functional fragmentation
vertical linkages
location choice
JEL: 
F23
L22
R30
Document Type: 
Working Paper

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