Firm location and productivity: Internal and external factors for local industrial growth
Witt, Christian Volker
Master of Arts
The effects of localization and urbanization economies, and firm specific factors on local industrial growth were tested for the electronic components industry (SIC 367) in Texas for the 6-year period, 1988 to 1994. The data source is the Texas Manufacturer's Register. Growth is observed on the plant level, the economic environment is the city a plant is located in. For plants that remain in the sample, firm specific variables are most important; younger smaller plants grow faster. Localization and urbanization economies are found to be out important. Localization effects vary in sign for effects of the four and three digit industry. Evidence that lower average firm size enhances local competition and growth could not be found. Urbanization effects are positive but a distinction between density and population effects was not possible.
Urban planning; Regional planning; Economics