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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For some variables it is difficult to assign them to one of the three categories. For instance ownership of the building can be seen as a firm internal factor, but also as a site characteristic. Hence we adopt an eclectic approach for the operationalisation of the explanatory stated preference of the firms with regard to migration in this model variables in the packers and movers pune and movers and packers pune empirical model.
Before turning to the empirical results some remarks will be made about the data and the model. The analysis is based on a very rich micro data set derived from regular surveys among the panel of firms managed by the Faculty of Spatial Sciences of the university of Groningen. We use data for 1338 firms that we questioned in 1995/ 1996. A detailed description of the data can be found in Van Steen 1998a. due to the panel character of the data for most firms in the sample we have also information at earlier points in time.
From the survey we know the actual spatial behavior of firm for each year from 1980 and also the propensity to move within the next two years. We have detailed information about the present location characteristics of firms and this information can be used to explain future migration. If firms moved in previous years the present location is the final result. In this paper we will focus on the stated preference of the firms with regard to migration.
Firms were asked to indicate the probability of moving in 1996 or 1997. They could choose from the following categories: 0%, 0-10%, 10-25%, 25- 50%, 50- 75%, 75- 90%, 90- 100% and 100%. For the empirical analysis we interpret this at that the respondent expresses a preference with an ordinal ranking. There is no significance to the unit distance between the set of observed values. With this eight categories the dependent variable y= PMOVE can take values between 0 and 7.
Of all firms 60% answered that they will certainly not move in the next two years. Almost a quarter shows a propensity to move of less than 10% and about 10% indicate that three is a chance of more than 25% that they will move to another location.
For this type of dependent variable the ordered probability model is a suitable tool of analyses see Greene, 1995, p. 469- 481. The two alternative model types the ordered logit and the ordered probit give more or less the same result up to a scale factors.
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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
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Quite remarkable that in Louw’s study
It is quite remarkable that in Louw’s study the average number of location factors mentioned per respondent varies considerably from one decision stage to the: 2.5 for the orientation phase 6.1 for the selection phase and 2.5 again for the negotiation phase. Obviously, in the orientation phase the search is of a superficial nature. Managers only pay attention to two packers and movers pune and movers and packers pune things  the number of square meters that are available rather logical in view of the importance of expansion space problem.
 As relocation factor number one and the price for which the location/ building is for sale or rent. In the selection phase a much greater number of factors are considered. Again price is important but on top that many spatial factors are now entering the scene, location/ situation accessibility- for car as well as by public transport- parking and possibilities for flexible use of space. In the third and final phase the negotiations then focus again on one or two key issues of wich the price issue always is predominant.
 When asked by Louw in his interviews for an ex- post evaluation the managers usually demonstrate satisfaction about the outcome of the negotiations, but in two third of the cases they nevertheless keep the feeling that they’ve had to compromise. Most of the compromises are about the price and about the parking facilities.
Louw’s process- oriented approach of firm relocation decisions had been followed up in recent years by pen 1999, 2000. In a study based on an extensive enquiry among over 1000 individual firms he considers relocation as one of six types of location strategies. He finds that the average length of the decision making process is much longer than often assumed on average 2 years and shows that the number of stages in the decision process varies from a minimum of three till a maximum of seven.
After factor analysis Pen’s results suggest that the relocation process is triggered by a combination of firm internal and external developments and not in the first place by lack of space for expansion and accessibility per se. this is in contrast to the dominant outcome based on answers from decision- makers on more straightforward survey questions. Interestingly the importance of individual factors prevails in the short three step decision processes while personal considerations are more important in five phased processes Pen 2000, p. 23. From the previous paragraphs we may conclude that still many things are not know about the decision making process of firms in general and with regard to firm relocation in particular.
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Result the interregional commuting streams
As a result the interregional commuting streams in the Netherlands almost doubled between 1987 and 1998 Ekamper and Van Wissen 2000. Possibly the most interesting and rewarding new research theme of the 1990s is the new interest in the process of firm decision making. In fact the identification of push- pull- and keep- factors only gives a superficial kind of packers and movers pune and movers and packers pune explanation of firm relocation processes a very partial insight in to how relocation decisions are really made.
There is a need to dig to a deeper level of explanation which takes in to consideration how decision processes regrading firm migration develop in more detail and which constraints have to be met during these processes by the decisions makers. In section 2 we already indicated the interest in decision processes which springs from the behavioural approach. Already in the 1970s Rown roe representing this approach developed a model with five successive decision stages viz.1 stimulus, 2 problem definition, 3 serch, 4 formulation and comparison of alternatives and, 5 choice and action.
The choice stage was further divided in to eight subsequent steps Town roe 1973. Later other authors have produced even more complicated models of the location decision making process see among others Lloyd and Dicken 1977, p.330. the application of their schemes and models in empirical research was scarce.
Consequently the knowledge about location decision processes continued to be normative and descriptive and remained untested. However the 1990s witness a revival of interest in this process aspect of firm migration decisions. Recently Louw gave a good example of a practical application of decision stage models in his phD thesis about locational choice behaviour of migrating large offices in the Netherlands Louw 1996. Louw divided the decision making process in to three phases viz.
an orientation phase a selection phase and a negotiation phase. This roughly corresponds to the phases 3, 4 and 5 of Town roe. It turns out then that spatial factors these are geographical position accessibility parking possibi;ities proximity of facilities & public transport and quality of the spatial surroundings play an important part in the first two phases whereas finacial and contractual factors are getting more important in the third phase when it comes to negotiating a result table2. The dominance of spatital factors in the search process is most important for firm that want to own their site and building and relatively less important in case a firm rents its premises.
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Ignore the category other services
If mostly financial services many of which are holding companies leading only a peper existence which makes them all the more mobile it is clear that commercial business services are by far the most mobile sector both in absolute mumbers and by migration rate. In the wholesale sector the migration rate is still very high as well but the absolute mumbers of moving firms are smaller. Construction and manufacturing are relatively less mobile and the packers and movers pune and movers and packers pune retail sector seems to be the stickiest sector. This sector has a high mutation rate but mutations normally take the form of openings and shutdowns much more than relocations.
Figure 2 shows the firm relocation in the Netherlands in the 1990s in the form of a map with origins and destinations of long distance relocation. Long distance is definde as a move across provincial border and thus all short distance relocation in and between municipalities including the majority of the economic sub- urbanisation around the major cities are omitted in this map.
Even than it is clear that firm relocation over very long distances is hardly occurs there are no streams of any importance from the core to the periphery. Firm migrations concentrate in the economic core area of the Randstad Holland the three western provinces with 50% of the nation’s popunation and economic activity.
However the maps also indicate a process of fanning out from the Randstad  to the adjoining provinces of Flevoland Gelderland and North Brabant a process which seems to stretch facther out in the course of the 1990s if we compare maps a and b. hessels phD study concerning the locational dynamics of business services in the Randstad Holland gives a more detailed anaysis of what is happening hessels 1992. Both the intensity and the increasing scale of the economic sub- urbanisation process in this office sector are exxplained mainly by accessibility related factors.
Car accessibility and parking space are the most important variables. Generally the induced mobility aspects of firm location get a more central place in firm relocation research in the 1990s, which of course reflects the gravity of growing mobility and traffic problem in most western countries. In the Netherlands Van Wee was the first study the transport stations on travel behaviour of employees Van Wee 1997. It is not very likely that firm relocation lead to a reduction in traffic. Brocersma and Van Dijk 2001 ab show that in the nineties the spatital distribution of the locations of jobs becomes more uneven where the spatial distribution of the working population becomes more even.
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The new viewpoints in policy
Research coincide with a trun in interest with respect to the most relevant economic sectors. From a firm relocation point of view one could say that the sectors of manufacturing industry wholesale and business services offices have left the city in a soft of outward procession of which the order has been dictated by the intensity of their land use. In the first post- war decades the interest in industrial movement was of coures partly due packers and movers pune and movers and packers pune to the then more dominaqne position of manufacturing industry in the employment structure.
But manufacturinmng also was the most mobile sector of that period. For its growth it needed space which was made available at specially developed industrial sites in fact in most countries a new post- war phenomenon at the city friges in suburban locations or in more distant development nodes at prices which were affordable for this sector of which the more traditional branches need a large acreage per worker.
 Before long the wholesale sector followed the industrial exodus and soon even outsized it. In the second half of the 1960s the Amsterdam Bureau of Statistics already counted a number of emigrant wholesale firms which was twice the number of emigrant industrial firms Pellenbarg 1976. At that time change in the number of business services leaving Amsterdam was still very modest but this was to change in the next decades.
The multi- storey offices of the business services sector using their square miles much more efficiently than ground floor facilities for production storage or distribution kept their positions in the central parts of urban areas longer. But in the course of the 1980s and 1990s they inserted in the urban overspill process too and soon dominated it. Especially in the second part of the 1980s when the economic recession was over a huge demand for new office space arose catc``hing `up `the``` investment arrears of the past period. This lead to a massive relocation of business services to business parks at city fringes and in suburbs lining the urban beltways and growing in to the office corridors which we now face aqlong most city entrances.
For the Netherlands this process is doc`umented rather well in the so- called Mutation balance system which has been set up by the `Union of Dutch Chambers of Commerce VVK and described in a series of articles by Kemper and Pelle`nbarg for a synopsis see Pwllenbarg and Kemper 1999. Table 1 presents the latest available and published figures.
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