Agglomeration, regional grants and firm location

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.

MoreLess

Year of publication:	2004
Authors:	Devereux, Michael P. ; Griffith, Rachel ; Simpson, Helen
Publisher:	London : Institute for Fiscal Studies (IFS)
Subject:	Standortpolitik \| Subvention \| Regionalpolitik \| Betriebliche Standortwahl \| Regionales Cluster \| Wirtschaftliche Effizienz \| Steuerbegünstigung \| Großbritannien \| Firm location \| agglomeration \| selective assistance \| regional policy

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

More details

Series:	IFS Working Papers ; 04/06
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	10.1920/wp.ifs.2004.0406 [DOI] 386072604 [GVK] hdl:10419/71560 [Handle]
Classification:	R12 - Size and Spatial Distributions of Regional Economic Activity ; R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location
Source:	EconStor

Persistent link: https://www.econbiz.de/10010293053