Pitfalls of Location Choice Analysis: The Finished Goods Producer versus the Intermediate Goods Producer

Discussion Papers


by HAYAKAWA Kazunobu , MATSUURA Toshiyuki

November 2008


In literature related to firm location choice, estimation equations are derived from the model of finished goods producers, but producer types are generally not considered. Research presented in this paper shows that the use of equations derived from such models against intermediate goods producers results in several problems.

Keywords: demand linkages; cost linkages; location choice
JEL classification: F23; H32; R34

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