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Modeling firm relocation: an ordered log it approach

The methodology used in these studies fits in the tradition of firm migration research with the use of rather descriptive methods. In the next paragraph we will present an example of a study in which some of these issues are analysed by means of more rigorous statistical models using packers and movers pune and movers and packers pune  a data set with information of individual Dutch firms.

In the foregoing three strands of theoretical aspects with regards to firm relocation are discussed and also an overview is given of the empirical studies since World War II. Besides location factors that are traditionally used for the explanation of firm relocation. Another important issue is often less appropriate for the explanation of firm relocation because the latter is by definition heavily influenced by the situation at the location before the move.

 This past behavior path dependency in combination with the expected future developments of the firm and the environment requires a more dynamic type of theoretical framework in which behavioral and evolutionary elements play a more prominent role. The decision process for firm relocation is a very complicated process in which several stages can be distinguished. In each stage another set of variables can be the most important factor.

Another issue is that most studies of firm relocation are of a rather descriptive nature, where nowadays more rigorous statistical methods could be applied to test hypothesis derived from the theoretical approaches described in section2.

In this section we will summaries the result of a Dutch study in which an empirical model for the explanation of the stated preference of firms to move to another location is estimated based on micro data for Dutch firms Van Dijk and Pellenbarg, 2000c. Although this study does not take in to account the different stages in the decision process, it is in our view a useful example to show how statistical methods can be used to get more insight in the extent to which the various theoretical notions mentioned before can be empirically verified. The stated preference of the firms with regard to migration in this model is related to a set of variables according to the subdivision in three categories suggested by Lloyd and Dicken 1977:

·         Firm internal factors

·         Location factors site and situation

·         Firm external factors

Packers and Movers in Pune@http://packers-movers-pune.co.in  stated preference