Abstract

Projekt-title: Relocation of Establishments in Germany

The choice of a location is of fundamental importance for a firm. Usually it is associated with high investments and relocation therefore linked with high sunk costs. Although the number of relocations has increased since the 1970s, they remain relatively rare occurrences. From the point of view of regional economics they are nevertheless interesting, since theory and empirical case studies suggest that it is especially young and expanding firms that relocate. Moreover the regional variations in trade taxation should shape the pattern of firm-migration.

This project is about
 - the selectiveness of firms that relocate in comparison to stationary firms
 - the effects of relocation on firm performance, particularly on firm-survival
 - explaining the migration balance of regions

The basis of the analysis is the employee history file (Beschäftigungshistorikdatei - BHD) of the Institute of Employment Research (IAB), a very rich and comprehensive database. In short, this database covers all establishments that employ at least one person which is subject to social security. The location of every establishment is known of the level of NUTS 4 (Municipalities).