Plant Location Patterns in the European Automobile Supplier Industry

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 pl...

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Bibliographic Details
Published in:Growth and change 2015-12, Vol.46 (4), p.558-573
Main Authors: Klier, Thomas, McMillen, Daniel
Format: Article
Language:English
Subjects:
Agglomeration
Automobile production
Automotive parts
Automotive parts industry
Factories
Plant location
Studies
Vehicles
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Summary: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.
ISSN:0017-4815
1468-2257
DOI:10.1111/grow.12114