Plant Location Patterns in the European Automobile Supplier Industry

Thomas Klier, Daniel McMillen

Research output: Contribution to journalArticlepeer-review

Abstract

Motor vehicle and motor vehicle parts production tend to exhibit a strong degree of agglomeration. We estimate a location model utilizing detailed plant-level data for over 1,700 European locations of the largest motor vehicle parts suppliers, as well as the location of all light vehicle assembly plants operational in 2010. This unique data set allows us to estimate a location model for the region at a significantly higher level of resolution than the previous literature. The results suggest that the main forces of agglomeration in the European auto supplier sector are highway access and the desire to locate near assembly plants as well as near other parts-producing plants.

Original languageEnglish (US)
Pages (from-to)558-573
Number of pages16
JournalGrowth and Change
Volume46
Issue number4
DOIs
StatePublished - Dec 1 2015

ASJC Scopus subject areas

  • Global and Planetary Change

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