Patterns of Business Location in Auckland

Motu Working Paper No. 11-08

84 Pages Posted: 13 Jun 2011 Last revised: 18 Jun 2011

See all articles by David C. Maré

David C. Maré

Motu Economic and Public Policy Research Trust; University of Waikato - Economics

Andrew Coleman

Motu Economic and Public Policy Research Trust

Date Written: May 31, 2011

Abstract

This paper analyses the location choices of new entrants to Auckland between 1996 and 2006, to identify a systematic relationship between residential location choices and features of local areas such as population density, the population composition of the area or its neighbourhood, accessibility to different types of amenities, paying particular attention to the influence of land prices. For the analysis, the Auckland Urban Area is divided into around 9,000 small areas (“meshblocks”). Location choices are analysed using count data methods applied to microdata from the Census of Population and Dwellings. The results emphasise the importance of own-group attraction. Groups of entrants classified by qualification, income, ethnicity, or country of birth are all attracted to meshblocks or neighbourhoods where their group already has a strong presence. The evidence demonstrates that this sorting reflects attraction to fellow group members, rather than being due to group members having common preferences for local amenities.

Keywords: urban economics, industrial location, count data models, productivity, agglomeration

JEL Classification: R3, R12

Suggested Citation

Maré, David C. and Coleman, Andrew, Patterns of Business Location in Auckland (May 31, 2011). Motu Working Paper No. 11-08, Available at SSRN: https://ssrn.com/abstract=1861549 or http://dx.doi.org/10.2139/ssrn.1861549

David C. Maré (Contact Author)

Motu Economic and Public Policy Research Trust ( email )

PO Box 24390
Wellington, 6021
New Zealand
64-4-9394250 (Phone)

HOME PAGE: http://www.motu.org.nz

University of Waikato - Economics

New Zealand

Andrew Coleman

Motu Economic and Public Policy Research Trust ( email )

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand

HOME PAGE: http://www.motu.org.nz

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