M.Sc. (Geography) / Republiek Voedsel (Edms) Bpk. was established in 1981 with the purpose of owning and operating KFC restaurants in South Africa and today successfully operates 40 KFC restaurants in Gauteng, the Free State, Northern Cape and North-West Province. This study endeavoured to create a model that could be used as an instrument to ensure that all possible variables influencing the selection of a site were considered when deciding where to build a KFC restaurant. The creation and use of an analogue data base containing the market variables, operational requirements and financial performance of all the Company's restaurants were fundamental to the success of the model. In general, the model should enable the researcher to identify under-utilized as well as non-utilized markets. Shortcomings in respect of existing restaurants and missed opportunities in the market area would be identified and exploited for the benefit of the market population and KFC/Republiek Voedsel. The specific purpose of this study was to test the validity of the proposed site selection model in the town of Edenvale, where the existing KFC is more than 10 years old. The market population characteristics, trade zone borders, market competition and traffic generators, all factors that influence the purchase pattern of the existing KFC customer base, were determined through a sample study.

This research examines the relationship between places and firms and how this contributes to competitive advantage. This is a vitally important topic at present, as businesses are adjusting to the dislocations of Brexit, trade wars, nationalism and other reactions to globalisation. Firms need a place strategy more than ever. How should resources be located in relation to markets, suppliers, skilled workers, laws, incentives, infrastructure, quality of life and the myriad other factors affecting business? Global connectivity presents so many options but also so many threats. Despite its importance, this is a subject that is relatively poorly served by existing literature and theory. A review of strategic management work relating to competitive advantage, including reflections on Chandler, Ansoff, Porter, Barney, Mintzberg, and many other authors, reveals an emphasis on management and organisation but a virtual blindness to the role of place. A review of economic geography literature related to competitive advantage, including consideration of work from Marshall to Maskell, Storper, Sassen, Glaeser, Florida and many others, shows an emphasis on place but a relative neglect, with only a few significant exceptions, for the view from the firm and the role of individuality in organisation and management. The two disciplines show a striking complementarity in their omissions. This interdisciplinary study draws on the wide range of existing material to build a new and comprehensive model of the place-firm relationship (the PFR) that brings convergence to the thinking around competitive advantage. This model is then tested and adjusted through empirical research leading to recommendations for firm strategy, government policy, academic theory and future research. The empirical study is based on the most important business sector in the UK in terms of size, growth and impact, namely financial services, and is set in the top two centres of activity in the UK for this sector outside London, namely Edinburgh and Glasgow. At the heart of the work is a series of 29 semi-structured, in-depth interviews with senior executives in these cities investigating how firms see the contribution of place to their competitive advantage, a necessarily qualitative methodology to unravel the complexity and contradictions inherent in the existing theory. The interviews have been transcribed and coded and analysis of the feedback has been used to both refine the new model and to derive insights about how it works in practice. The results of the application of the model show that the PFR is highly complex but also that it can be rigorously assessed and the key factors contributing to competitive advantage can be identified and prioritised. These factors can be grouped under the main themes of the ease of doing business, talent, quality of life, local networks and legacy. It is clear that every business enjoys a unique PFR but that the individual organisational profiles can be aggregated in line with the main themes to show agglomeration and cluster effects around places, industry sectors, types of business and other groupings. In the case of the financial services businesses tested here, the availability of talent stands out as the most important contribution to competitive advantage firms receive from places, but this is closely linked to other factors in a web of connections. Also evident is the pragmatic co-existence of competition and collaboration in firm strategies and practice and the emergence of different but overlapping cluster types, particularly one underpinned by legacy in Edinburgh and the other underpinned by government intervention in Glasgow. This research gives business managers a tool and methodology with which to assess and compare how place contributes to their competitive advantage. It thus gives an added vital dimension to most strategic decisions and particularly to considerations about relocation, expansion, off-shoring, and geographical dispersal and diversification. The agility necessary for businesses to respond to the current turbulent political and economic environment must extend to managing place and place-firm relationships in the more systematic way proposed in this work in order to maintain and extend competitive advantage. This model can also help development agencies and national and local government to interpret the competitive advantages of places as seen by firms and to make comparisons with other places. It can give an informed basis for discussion with businesses and point to where improvements can be made in line with the place objectives and overall development plans. The new model gives a common framework for different parties to reconcile their objectives to mutual benefit. Last but not least, the research presents academics with possibilities for more interdisciplinary work to address gaps in theory about one of the most pressing issues of the day. The model opens the door to new research opportunities to test its applicability in different combinations of places, businesses and industry sectors, for different types of agglomeration and cluster formation. This is an opportunity for the academic research community to furnish the objective, sound and informed view necessary to support potentially controversial decision making in these uncertain times.

Economic growth is a major concern for state governments. One method that states use to spur economic growth is recruiting firms to relocate or expand within their state. Headlines and press releases from high–profile recruitment cases suggest that states compete with each other to recruit firms. The primary question in this dissertation is whether states compete to recruit firms. A unique panel data set that captures a state’s firm recruitment effort now provides the opportunity to answer this question. A variety of econometric methods (2SLS, MLE, and GS2SLS–GMM) isolate the spatial interdependence effect, and the empirical results show states do compete with each other to recruit firms. Another question answered in this dissertation is whether it matters how researchers measure a state’s effort to recruit firms. The results reveal that it is important to capture only spending related to firm recruitment, as other measures provide fundamentally different results. In addition, this dissertation tests for the nature of rivalry between states and shows that states compete with other states that are economically or demographically similar. The results of competition are not only robust, but large in magnitude as well. States are very responsive to their rival’s effort to recruit firms. Can states stop spending on firm recruitment? If they do, the other states will capture their potential firms–thus the competition to recruit firms does not seem likely to end soon.

This thesis describes and analyzes the location and size distribution of artand entertainment establishments and metropolitan regions in the UnitedStates. The included sectors are sound recording, motion picture and video,book and newspaper publishing as well as the live performing arts. Their sizeis analyzed by total employment and brought in context to their respectivemarkets and the rank-size rule. The results are interpreted within the economictraits specific to the art and entertainment industry.The results show that most analyzed sectors are over proportionally concentratedin one location, making it the center for these activities. In addition, thesize distribution in all sectors except sound recording follows Zipfs law to agreat extend. Explanations for this can be found in lock-in mechanisms overtime and classic agglomeration advantages.

This thesis consists of a summary and five self-contained papers addressing dynamics of firms in the Swedish wholesale trade sector. Paper [1] focuses upon determinants of new firm formation in the Swedish wholesale trade sector, using two definitions of firms’ relevant markets, markets defined as administrative areas, and markets based on a cost minimizing behavior of retailers. The paper shows that new entering firms tend to avoid regions with already high concentration of other firms in the same branch of wholesaling, while right-of-the-center local government and quality of the infrastructure have positive impacts upon entry of new firms. The signs of the estimated coefficients remain the same regardless which definition of relevant market is used, while the size of the coefficients is generally higher once relevant markets delineated on the cost-minimizing assumption of retailers are used. Paper [2] analyses determinant of firm relocation, distinguishing between the role of the factors in in-migration municipalities and out-migration municipalities. The results of the analysis indicate that firm-specific factors, such as profits, age and size of the firm are negatively related to the firm’s decision to relocate. Furthermore, firms seems to be avoiding municipalities with already high concentration of firms operating in the same industrial branch of wholesaling and also to be more reluctant to leave municipalities governed by right-of-the- center parties. Lastly, firms seem to avoid moving to municipalities characterized with high population density. Paper [3] addresses determinants of firm growth, adopting OLS and a quantile regression technique. The results of this paper indicate that very little of the firm growth can be explained by the firm-, industry- and region-specific factors, controlled for in the estimated models. Instead, the firm growth seems to be driven by internal characteristics of firms, factors difficult to capture in conventional statistics. This result supports Penrose’s (1959) suggestion that internal resources such as firm culture, brand loyalty, entrepreneurial skills, and so on, are important determinants of firm growth rates. Paper [4] formulates a forecasting model for firm entry into local markets and tests this model using data from the Swedish wholesale industry. The empirical analysis is based on directly estimating the profit function of wholesale firms and identification of low- and high-return local markets. The results indicate that 19 of 30 estimated models have more net entry in high-return municipalities, but the estimated parameters is only statistically significant at conventional level in one of our estimated models, and then with unexpected negative sign. Paper [5] studies effects of firm relocation on firm profits of relocating firms, employing a difference-in-difference propensity score matching. Using propensity score matching, the pre-relocalization differences between relocating and non-relocating firms are balanced, while the difference-in-difference estimator controls for all time-invariant unobserved heterogeneity among firms. The results suggest that firms that relocate increase their profits significantly, in comparison to what the profits would be had the firms not relocated. This effect is estimated to vary between 3 to 11 percentage points, depending on the length of the analyzed period.

Applying microeconomic theory, we develop a forecasting model for firm entry into local markets and test this model using data from the Swedish wholesale industry. The empirical analysis is based on directly estimating the profit function of wholesale firms. As in previous entry studies, profits are assumed to depend on firm- and location-specific factors,and the profit equation is estimated using panel data econometric techniques. Using the residuals from the profit equation estimations, we identify local markets in Sweden where firm profits are abnormally high given the level of all independent variables included in the profit function. From microeconomic theory, we then know that these local markets should have higher net entry than other markets, all else being equal, and we investigate this in a second step,also using a panel data econometric model. The results of estimating the net-entry equation indicate that four of five estimated models have more net entry in high-return municipalities, but the estimated parameter is only statistically significant at conventional levels in one of our estimated models.

This doctoral thesis concerns the interplay between multinational enterprises (MNE) and spatial economies, with an orientation towards the location and spillover effects of inward foreign direct investments (FDI). The thesis consists of four essays that are self-contained studies. The first essay relates to the shift away from FDI in manufacturing to services and examines whether service FDI locates differently from manufacturing FDI. The second essay concerns the relationship between FDI and public incentives and whether investment promotion schemes are useful to attract FDI. The third essay examines the link between human capital and FDI and how different types of skilled workers influence FDI location. Taken together, these three essays examine conditions and factors that determine the location decision of foreign MNEs in the contemporary era of globalisation. The forth essay examines whether labour mobility is a potential source for spillovers from FDI in a spatial context. Although the latter essay does not provide any final answer to whether spillovers actually arise through this channel, it shows that the potentials for an effect to arise are larger in some regions than others because there are very few or no such knowledge spillover agents in many parts of the country. The thesis concludes by discussing the link between FDI and the policy work on regional development, and some avenues for future studies. / <p>QC 20130816</p>

Cette thèse porte sur l’évaluation de quatre politiques d’aménagement du territoire en France. Elle aborde également trois questions majeures de l’économie urbaine : l'influence des transports sur la localisation de l'emploi et de la population, l’élasticité de l'offre de logement et la ségrégation urbaine. La première politique publique étudiée est le Réseau express régional. Ainsi, l’amélioration des transports publics en Île-de-France a favorisé la croissance de l’emploi dans les communes de banlieue. Il n’y aurait en revanche pas de croissance globale de la population mais un possible effet de gentrification à proximité des stations. Dans un deuxième temps, cette thèse s’intéresse au rôle du train à grande vitesse dans l’organisation spatiale des entreprises multi-implantations. Il est établi que les filiales voyant le temps de parcours vers leur siège diminuer se spécialisent dans les activités de production. Cette création s'effectue au détriment des activités d'encadrement. Ensuite, ce travail évalue l’impact des zones franches urbaines. L’effet de première génération de ce dispositif sur la localisation des entreprises et sur l'emploi est massif. En revanche, il n'a que faiblement profité aux habitants de ces quartiers, soulignant un manque de ciblage de la mesure. Le dernier chapitre évalue l’effet des aides au logement sur le niveau des loyers et l’offre de logements locatifs. Il confirme que les aides au logement induisent une hausse des loyers privés. L’élasticité de l'offre de logements reste faible dans le long terme, puisque l'effet inflationniste perdure tandis que la quantité et la qualité des logements locatifs ne s'adaptent pratiquement pas. / This thesis evaluates four French urban and regional policies. It also covers three major issues in urban economics: the impact of transportation on the spatial distribution of employment and population, the elasticity of housing supply and urban segregation. First, the thesis focuses on the Regional Express Rail system. The improvement of public transport in the Paris region causes employment to grow in suburban municipalities. However, there is not effect on overall population growth but a possible gentrification effect nearby RER stations. Secondly, this thesis studies the role of high-speed rail in the spatial organization of multi-plant businesses. It shows that the reduction in travel time to their headquarters subsidiaries lead the affiliate to specialize in production activities, to the expense of management tasks. Then, this work assesses the impact of the French Urban Enterprise Zones. The first generation of this program have a massive impact on firm location and employment. However, it only slightly benefited to the local residents, highlighting a lack of targeting. The last chapter evaluates the effect of housing allowance on the level of rents and the supply of rental housing. It confirms that housing subsidies cause private rents to increase. The elasticity of housing supply remains low in the long term, since the upward effect does not vanish and the quantity and the quality of rental housing do not adjust.

The loss of international competitiveness of domestic industries remains a key obstacle to the implementation of effective carbon prices in a world without harmonized climate policies. We analyze countries' non-cooperative choices of emissions taxes under imperfect competition and mobile polluting firms. In our general equilibrium setup with trade, wage effects prevent all firms from locating in the same country. While under local or no pollution countries achieve the first-best, under transboundary pollution taxes are inefficiently low and lower than under autarky where only the `standard' free-riding incentive distorts emissions taxes. This effect is more pronounced when polluting firms are mobile.

In this paper, we analyse the effects of a unilateral change in an emissions tax in a model of international trade with heterogeneous firms. We find a positive effect of tighter environmental policy on average productivity in the reforming country through reallocation of labour towards exporting firms. Domestic aggregate emissions fall, due to both a scale and a technique effect, but we show that the reduction in emissions following the tax increase is smaller than in autarky. Moreover, general equilibrium effects through changes in the foreign wage rate lead to a reduction in foreign emissions and, hence, to negative emissions leakage in case of transboundary pollution.