Backward and forward linkages in manufacturing location decisions reconsidered

Abstract

Backward and forward linkages are often cited as both determinants of plant location and as desirable factors in targeting potential firms. This paper models manufacturing investment decisions within a state economy. The authors use a conditional multinomial logit model and find that both types of linkages are significant. We further note that per capita income and the number of workers employed in manufacturing within the region are also significant in the location decision. -from Authors