Exploring Firm Location Beyond Simple Growth Models: A Double Hurdle Application
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Firm location decisions are typically influenced by economic, demographic, environmental,
and social factors. This research extends the current literature by investigating the factors
thought to influence the total number of manufacturing firms within a given region. Given
the large number of regions without any manufacturing firms, a double hurdle model is employed
to account for excess zeros. The results suggest that there are certain industry input
variables, such as population and education that make a region an attractive or unattractive location
for a particular manufacturing firm.