Abstract

http://ssrn.com/abstract=776568
 
 

References (25)



 
 

Citations (12)



 


 



Why and Where do Headquarters Move?


Vanessa Strauss-Kahn


INSEAD - Economics and Political Sciences

Xavier Vives


University of Navarra - IESE Business School; Universitat Pompeu Fabra (UPF); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

May 2005

CEPR Discussion Paper No. 5070

Abstract:     
This paper analyzes decisions regarding the location of headquarters in the US for the period 1996-2001. Using a unique firm-level database of about 30,000 US headquarters, we study the firm- and location-specific characteristics of headquarters that relocated over that period. Headquarters are concentrated, increasingly so in medium-sized service-oriented metropolitan areas, and the rate of relocation is significant (5% a year). Larger (in terms of sales) and younger headquarters tend to relocate more often, as well as larger (in terms of the number of headquarters) and foreign firms, and firms that are the outcome of a merger. Headquarters relocate to metropolitan areas with good airport facilities, low corporate taxes, low average wages, high level of business services and agglomeration of headquarters in the same sector of activity.

Number of Pages in PDF File: 53

Keywords: Agglomeration externalities, business services, communication costs, congestion, corporate history, mergers, nested logit, taxes

JEL Classification: F15, F23, L20, R12

working papers series


Date posted: August 4, 2005  

Suggested Citation

Strauss-Kahn, Vanessa and Vives, Xavier, Why and Where do Headquarters Move? (May 2005). CEPR Discussion Paper No. 5070. Available at SSRN: http://ssrn.com/abstract=776568

Contact Information

Vanessa Strauss-Kahn
INSEAD - Economics and Political Sciences ( email )
Boulevard de Constance
F-77305 Fontainebleau Cedex
France
+33 1 6072 4239 (Phone)
Xavier Vives (Contact Author)
University of Navarra - IESE Business School ( email )
Avenida Pearson 21
Barcelona, 08034
Spain
HOME PAGE: http://wwwapp.iese.edu/faculty/facultyDetail.asp?lang=en&prof=xv
Universitat Pompeu Fabra (UPF) ( email )
Ramon Trias Fargas, 25-27
Barcelona, 08005
Spain
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
CESifo (Center for Economic Studies and Ifo Institute for Economic Research) ( email )
Poschinger Str. 5
Munich, DE-81679
Germany
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References:  25
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