Determinants – Regional Science Inquiry

Nilnaz AKBAŞOĞULLARI

MSc City Planner, Izmir, Turkey, Tel: +90 554 972 37 64

nilnazakb@gmail.com

Hasan Engin DURAN

(Corresponding Author) Izmir Institute of Technology, City and Regional Planning Department, Associate Professor of Economics, Adress: Gülbahce Kampüsü, Izmir Yüksek Teknoloji Ensitüsü, Mimarlık Fakültesi, Şehir ve Bölge Planlama Bölümü, Urla-Izmir, Tel: +90 232 750 70 04

enginduran@iyte.edu.tr

Abstract

Purpose of the current study is to analyze the determinants of firm location in Izmir’s food industry. The dataset covers 734 firms in 2018. The analyses particularly focus on the impact of experience and size of the firms, the effects of which are not yet adequately analyzed by the existing literature. In terms of methodologies, initially, explorative maps are used to illustrate the data. Then, linear regression analyses are applied to analyze the location behavior determinants. Spatial autocorrelation test is applied to as a robustness test. Our findings point to three main results. First, firm size is not statistically a significant determinant of firm location. So, big firms may locate in/around or out of cities, whereas, also small firms may locate close to or distant from city centers Second, the influence of the experience variable is rather definite; earlier founded firms naturally locate closer to CBD. Third, with regard to results regarding sub-sectors, firms in packaged food and bakery sectors locate nearby CBDs where, in contrast, firms in animal products sector tend to locate in rural areas. Overall, the key lesson that we learn from the analysis is that concentration of large firms around urban areas should be avoided so to cope with environmental problems and to maintain fair competition between big and small firms. Moreover, younger firms should be subsidized (through tax exemptions, rental aid, export and employment subsidies) so that their capital structure remains strong even if they are not able to place close to the market.

Keywords: Location Choice, Food Industry, Determinants, Firm Size

JEL classification: D22, R3

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Xiang CAI

Lecturer, The University of Texas at Dallas,

xiang.cai@utdallas.edu

Abstract

In response to the wide social concerns of exponential price inflation and the severe demand for affordable housing over the last decade, the Chinese government has enforced a national plan to enhance the large-scale construction and provision of affordable housing, while municipal governments are responsible at the local level for implementation and allocation via various housing provision programs. In this paper we collected first-hand data from a series of personal interviews with government officials to conduct a systematic analysis of the challenges of housing allocation from the perspectives of administrators at the city level. In light of the responses from practitioners, the four main concerns giving rise to low efficiency and unfairness in housing allocation are: the faction of agencies, ineffective monitoring systems, the lack of transparency of information, and the absence of legal enforcement. Legal enforcement is the most important institutional establishment as it stipulates agency collaboration and monitoring. Transparency, which is affected by legal enforcement, also enhances cooperation among departments.

Keywords: Affordable Housing, Determinants, Allocation and Distribution, Local Officials

JEL classification: R5, R580
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