Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71560
Authors: 
Devereux, Michael P.
Griffith, Rachel
Simpson, Helen
Year of Publication: 
2004
Series/Report no.: 
IFS Working Papers, Institute for Fiscal Studies (IFS) 04/06
Abstract: 
We examine whether discretionary government grants influence the location of new plants, and how effective these incentives are in the presence of agglomeration and urbanisation externalities. We find evidence that regional industrial structure affects the location of new entrants. Firms in more agglomerated industries locate new plants near to others in the same industry. Firms are also attracted to industrially diversified locations. Foreign multinationals locate new plants near to other foreign-owned plants in the same industry. Fiscal incentives in the form of grants are found to have some effect in attracting plants to specific geographic areas eligible for such aid.
Subjects: 
Firm location
agglomeration
selective assistance
regional policy
JEL: 
R12
R3
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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