Determinants of Headquarters Location Choices and Productivity Sorting: Evidence from Japanese firm-level data

Author Name MATSUURA Toshiyuki  (Keio Economic Observatory, Keio University)
Creation Date/NO. July 2012 12-J-022
Research Project Determinants of the Productivity Gap among Firms in Japan
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This paper explores the timing and location of firms' headquarters relocation using Japanese firm-level data. The issue on the location choices for corporate headquarters has attracted the attention of not only academic researchers but also policy makers. Since the agglomeration of headquarters increases the demand for educated workers and service outsourcing businesses, it is important to clarify the determinants of the location choices of headquarters. In addition, in this paper, we pay attention to the heterogeneous impact of productivity on location choices. Our result suggests that high productivity firms are more likely to relocate their headquarters to high wage regions.