Author:David C Maré, Andrew Coleman
Source:Motu Economic and Public Policy Research: Wellington
Topics:Economy, business and industry
This paper investigates the spatial determinants of industrial location and productivity variation within the Auckland Urban Area. For over 300 local areas, we consider the influence on location choice and productivity of proximity to selected infrastructure, local services, and consumption amenities, and of the density and industry composition of local employment. Using data from a microdata panel of firms, we use count-data methods to model the location choices of new firms, and production function estimation for productivity estimation. We identify distinct location patterns across industries but, overall, the accessibility and employment composition measures that we examine do not account for industrial location and productivity patterns within Auckland. This increases the challenges of anticipating and planning for future business location patterns.