Monday 13 October 2014

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The description of the result below is based on the logit model. The ordered logit model is a form of regression model in which the dependent variable is an ordinal variable. Estimation of the ordered logit model has been done with LIMDEP version7. For detail about the estimation procedure and the interpretation of the results see Greene 1995p. 469- 481 and 1997, p. 672- 676. packers and movers pune and movers and packers pune
Next we will summaries the empirical outcomes in relation to the theoretically expected sing of the explanatory variables that are subdivided in the three categories in eternal factors. Location factors and firm external factors. For a more detailed description of the theoretically expected sings, the model selection process and the empirical outcomes see Van Dijk and Pellenbarg 2000c.
We expect that the industrial sector will have a lower probability of moving than the service sectors. The costs of moving are generally higher for the industrial sector, because the investment in capital stock and the capital intensity is higher. With regard to the service sector the cost of moving can be very high if they move over a long distance when it implies that a large part of their personal does not move with the firm. In that case the hiring firing and training cost can be very high and make relocation over a long distance unattractive. For short distance moves these costs are probably fairly low for the service sector. Theoretically we expect the mobility of the construction wholesale and transport sector somewhere in between the industrial and the service sector.
For the firms in the sector retail and Horace hotels restaurants and bars we expect that they are most of the time sticking to the present location because they are tied to the local market. Firms in this sector are traditionally clatterers because they serve customers who economies on travel by doing multipurpose shopping or seeking food or shelter where there are many providers to minimize shoppers discouragement. As a result the propensity to move is expected to be much lower for retail and Horace than for the industrial sector. This last hypothesis is indeed confirmed in the empirical model, but for the other sectors no significant differences are found.
With regard to the size of the firm we expect that small firms can move more easily to another location than large firms, because the costs of moving and the organizational problems for small firms are expected to be much less than for large firms.
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