Agglomeration, regional grants and firm location

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFS Working Papers ; No. 04/06

Classification and Topics

• Classification: Wirtschaft ; Size and Spatial Distributions of Regional Economic Activity
• Subject: Firm location ; agglomeration ; selective assistance ; regional policy ; Standortpolitik ; Subvention ; Regionalpolitik ; Betriebliche Standortwahl ; Regionales Cluster ; Wirtschaftliche Effizienz ; Steuerbegünstigung ; Großbritannien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Devereux, Michael P. ; Griffith, Rachel ; Simpson, Helen
• Event: Veröffentlichung
• (who): Institute for Fiscal Studies (IFS)
• (where): London
• (when): 2004

Further information

• DOI: doi:10.1920/wp.ifs.2004.0406
• Handle: http://hdl.handle.net/10419/71560
• Last update: 10.03.2025, 11:45 AM CET