A Spatial Multivariate Count Model for Firm Location Decisions

This paper proposes a new spatial multivariate model to predict the count of new businesses at a county level in the State of Texas. Several important factors including agglomeration economies/diseconomies, industrial specialization indices, human capital, fiscal conditions, transportation infrastructure and land development characteristics are considered. The results highlight the need to use a multivariate modeling system for the analysis of business counts by sector type, while also accommodating spatial dependence effects in business counts.

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