EMPIRICAL STUDIES IN INDUSTRIAL LOCATION: AN ASSESSMENT OF THEIR METHODS AND RESULTS*

This paper surveys recent evidence on the determinants of (national and/or foreign) industrial location. We find that the basic analytical framework has remained essentially unaltered since the early contributions of the early 1980s while, in contrast, there have been advances in the quality of the data (more firm and plant level information, geographical disaggregation, panel structure, etc.) and, to a lesser extent, the econometric modeling. We also identify certain determinants (neoclassical and institutional factors) that tend to provide largely consistent results across the reviewed studies. In light of this evidence, we finally suggest future lines of research.