Empirical investigation of the effect of amenities and other factors on business location decisions

PurposeThe purpose of this paper is to investigate aspiring immigrant opportunity (AIO) entrepreneurs' start-up location decisions.Design/methodology/approachThe authors used conjoint analysis to explore 1,264 location decisions nested within 79 highly educated, first-generation AIO entrepreneurs.FindingsThe authors found that although government support positively influences business location decisions, network support decreases the perceived benefits of government support for AIO entrepreneurs. Furthermore, locations with high costs of doing business are unattractive to AIO entrepreneurs, but financial capital access through ethnic and nonethnic sources in these locations enhances the appeal of high-cost locations.Research limitations/implicationsThe generalizability of the findings to AIO entrepreneurs should be considered with caution. Future research should longitudinally examine immigrant opportunity entrepreneurs' location decisions and their implications for their start-up and community-level performance outcomes. The authors also encourage replication of the study.Practical implicationsThe findings of this study have implications for AIO entrepreneurs who intend to make start-up location decisions. Also, government policymakers can use the findings of this study to better attract AIO entrepreneurs to different locations.Originality/valueBy integrating ethnic enclave theory and location theory, this research contributes to theory and practice about immigrant opportunity entrepreneurs' start-up location decisions which are currently underexplored in the immigrant entrepreneurship literature.

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HOW STRONG IS A NATION'S INTELLECTUAL PROPERTY PROTECTION? INTERNATIONAL BUSINESS LOCATION DECISIONS AND INTELLECTUAL PROPERTY INSTRUMENTS

Journal of International Management Studies ◽

10.18374/jims-17-3.7 ◽

2017 ◽

Vol 17 (3) ◽

pp. 89-100

Author(s):

Amanda Budde-Sung

Keyword(s):

Intellectual Property ◽

International Business ◽

Intellectual Property Protection ◽

Location Decisions ◽

Business Location

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Race to the Bottom? Local Tax Break Competition and Business Location

American Economic Journal Applied Economics ◽

10.1257/app.20170511 ◽

2020 ◽

Vol 12 (1) ◽

pp. 288-317 ◽

Cited By ~ 3

Author(s):

Evan Mast

Keyword(s):

Spatial Competition ◽

Property Tax ◽

Specific Property ◽

Location Decisions ◽

Race To The Bottom ◽

Business Location ◽

Tax Exemptions

I analyze how competition between localities affects tax breaks and business location decisions. I first use a geographic instrument to show that spatial competition substantially increases firm-specific property tax breaks. I then use this pattern to estimate a model of localities competing for mobile firms by offering tax exemptions. In counterfactual exercises, restricting which levels of government can offer tax breaks has little effect on equilibrium business locations but lowers total exemptions by 30 percent. This suggests that local tax break competition primarily reduces taxes for mobile firms and is unlikely to substantially affect the efficiency of business location. (JEL H25, H71, H73, R32)

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