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Spatial Organization of Firms and Location Choices Through the Value Chain

Author : Juan Alcacer
Publisher :
Page : 31 pages
File Size : 22,25 MB
Release : 2013
Category :
ISBN :

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We explore the impact of geographically bounded, intra-firm linkages (internal agglomerations) and geographically bounded, inter-firm linkages (external agglomerations) on firms' location strategies. Using data from the Census Bureau's Longitudinal Business Database, we analyze the locations of new establishments of biopharmaceutical firms in the U.S. in 1993-2005. We consider all activities in the value chain and allow location choices to vary by R&D, manufacturing, and sales. Our findings suggest that internal agglomerations have a positive impact on location. The effects of internal agglomerations vary by activity, and they arise both within an activity (e.g. among plants) and across activities (e.g. between sales and manufacturing). Our results also suggest that previous estimates of the effect of external agglomerations may be overestimated because the existing literature abstracted from internal agglomerations.

Spatial Organization of Firms

Author : Yukako Ono
Publisher :
Page : 0 pages
File Size : 24,29 MB
Release : 2007
Category :
ISBN :

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A firm's production activities are often supported by non-production activities. Among these activities are administrative units including headquarters, which process information both within and between firms. Often firms physically separate such administrative units from their production activities and create stand alone Central Administrative Offices (CAO). However, having its activities in multiple locations potentially imposes significant internal firm face-to-face communication costs. What types of firms are more likely to separate out such functions? If firms do separate administration and production, where do they place CAOs and why? How often do firms open and close, or relocate CAOs? This paper documents such firms' decisions on their spatial organization by using micro-level data from the U.S. Census Bureau.

Spatial Organization of Firms

Author : Juan Alcacer
Publisher :
Page : 30 pages
File Size : 36,93 MB
Release : 2012
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ISBN :

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We explore the impact of geographically bounded intra-firm spillovers (internal agglomeration economies) and geographically bounded inter-firm spillovers (external agglomeration economies) on firms' location strategies. Using data from the Census Bureau's Longitudinal Business Database and the U.S. Cluster Mapping Project, we analyze organic expansions of biopharmaceutical firms (by both new establishments and employment increase in existing establishments) in the U.S. in 1993-2005. We consider all activities in the value chain and allow location choices to vary by R&D, manufacturing, and sales. Our findings suggest that (1) internal and external agglomeration economies have separate, positive impacts on location, with relevant differences by activity; (2) internal economies of agglomeration arise within an activity (e.g., among plants) and across activities (e.g., between manufacturing and sales); (3) the effects of internal economies across and within activities vary by activity and type of organic expansion; and (4) across-activity internal economies are asymmetric.

Understanding the Firm

Author : Michael Taylor
Publisher : OUP Oxford
Page : 288 pages
File Size : 13,56 MB
Release : 2006-12-21
Category : Business & Economics
ISBN : 0191514624

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Firms are at the very heart of modern day life. They come in a seemingly infinite variety - from transnationals to small firm, from corporations to branch plants, to subsidiaries and joint ventures, from subcontractors to franchisees, from sole proprietorships to partnerships, from manufacturers to service providers and retailers. For the most part we view them as the creators, destroyers, and repositories of jobs - the creators and destroyers of people's livelihoods, lives, and dreams. But, deciding just what a firm is is neither a simple nor a straightforward task. Against a background of the dynamic complexity and plurality that business forms (and firms) can assume, there is a constant search within academic research for the processes that create and maintain both enterprise and enterprises in capitalist societies: a search for a theory of the firm. This book addresses some of the gaps in the current state of the theory of the firm from an economic geography perspective: issues around the boundaries of the firm; the collective agency of the firm; the political firm, financial markets, and the state; and the firm in place.

How Do Trade and Communication Costs Shape the Spatial Organization of Firms?

Author : Toshitaka Gokan
Publisher :
Page : 37 pages
File Size : 14,82 MB
Release : 2019
Category : Communication in international trade
ISBN :

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We consider an economic geography setting in which firms are free to choose one of the following organizational types: (i) integrated firms, which perform all their activities at the same location, (ii) horizontal firms, which operate several plants producing the same good at different locations, and (iii) vertical firms, which perform distinct activities at separated locations. We show that there exists a unique organizational equilibrium, which typically involves the coexistence of various organizational forms. We also give necessary and sufficient conditions for the three types of firms to coexist within the same region and show that transportation and communication costs have opposite effects on firms' organizational choices. This suggests that, depending on its nature, the supply of a new transportation infrastructure may lead to contrasted locational patterns.

Essays on the Spatial Organization of Firms and the Effects of Land Use Regulations

Author : Camilo Andres Acosta Mejia
Publisher :
Page : pages
File Size : 43,1 MB
Release : 2020
Category :
ISBN :

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This dissertation is composed of three chapters that explore different issues within urban economics. The first two, jointly authored with Ditte Lyngemark from the Kraks Fond Institute for Urban Economic Research, focus on the spatial organization of firms, while the third one studies different effects of land use regulations within cities. The first chapter studies the spatial structure of firms by considering the location and occupational composition of establishments within firms. Using Danish employer-employee data, we document that the average number of establishments per firm increased by 36% between 1981 and 2016. Moreover, the average distance of establishments and workers to their headquarters (HQ) increased by more than 200%. These changes are mainly driven by the decentralization of production and business services. Finally, HQ establishments have become more manager intensive, despite increasing wages in their locations. The second chapter investigates the forces governing the previous facts, especially the roles of regional wage differences and communication costs. Our study proceeds theoretically and empirically, concluding with the first structural analysis of this issue. Using immigration shocks as the source of identifying variation, our estimates indicate that increases in the wage of managers at HQ relative to non-HQ explain 50% of the increase in HQ managerial intensity. Increasing demand for headquarter services as satellite establishments become larger is the main mechanism behind this effect. Wider wage gaps across locations also lead to more establishments per firm, and this effect strengthens as communication costs fall. In the last chapter, I study the incidence and general equilibrium effects of land use regulations. I use detailed geographic data for Chicago in 2016, together with a quantitative model with worker heterogeneity and real estate developers facing regulations. For identification, I use the 1923 Zoning Ordinance. I find that an increase of 10 percentage points in the share of residential zoning in a location leads to a 1% decrease in housing prices, a 15% decrease in wages and a 2.5% increase in amenities. I find that more residential and mixed-use zoning lead to welfare gains for both types of residents, but increase welfare inequality.

Corporate Geography

Author : R. Laulajainen
Publisher : Springer Science & Business Media
Page : 457 pages
File Size : 40,36 MB
Release : 2013-03-09
Category : Science
ISBN : 940171181X

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Corporate Geography examines the spatial structures and behaviour of large business organizations. Corporations are key operational units of economies. Each corporation has several locations and connections to suppliers and customers who also operate in geographical space. The effectiveness of corporate spatial organizations is of importance for their well-being and for the health of the national and local economies in which they operate. This volume discusses where and why firms locate units of production, sales and control and how these interact with each other, with suppliers and with customers. The foundations are from commercial geography, business economics and location theory, but there are some unique characteristics. One is the blending of manufacturing and retailing in one treatise. Another is the extensive use of real-company case studies which illustrate both the basic concepts and the inadequacies of existing models. Corporate managers can relate to the experiences of actual companies. This book is of interest to scientists, researchers and professionals in economic geography, business administration, general management, microeconomies, industrial organization and economic planning.