Firm-specific and location-specific drivers of business location and relocation decisions

Abstract

Decisions made by businesses on where to locate or relocate are typically given less consideration than residential location in integrated transport and land use modelling systems. This is surprising given the important role that businesses play in defining employment opportunities, and hence the travel patterns of workers and any travel associated with accessing firms. As part of a larger study on giving firm location choices an endogenous representation in an integrated model system, this paper reviews the existing literature on the drivers of location and relocation decisions in various geographical jurisdictions. The findings provide a starting position in the design of future firm-specific surveys and especially the attributes that are candidates for stated choice experiments and for inclusion in firm location utility equations embedded in integrated strategic model systems.