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Research seminar with Associate Professor Juan Alcacer
June 14, 2013 @ 12:30 pm - 2:00 pm
Juan Alcacer received his Ph.D. in International Business and Strategy and an M.A. in Economics from the University of Michigan. He also holds an MBA in Finance and Economics from IESA. Professor Alcacer’s research interests are in international strategies of firms in the telecommunications industry. His current research focuses primarily on the effect of competition on the location decisions of multinationals. He will present the paper entitled “Spatial organization of firms and location choices through the value chain”.
“Spatial organization of firms and location choices through the value chain”
We explore the impact of geographically bounded, intra-firm linkages (internal agglomerations) and geographically bounded, inter-firm linkages (external agglomerations) on firms’ location strategies. Using data from the Census Bureau’s Longitudinal Business Database, we analyze the locations of new establishments of biopharmaceutical firms in the U.S. in 1993–2005. We consider all activities in the value chain and allow location choices to vary by R&D, manufacturing, and sales. Our findings suggest that internal agglomerations have a positive impact on location. The effects of internal agglomerations vary by activity, and they arise both within an activity (e.g. among plants) and across activities (e.g. between sales and manufacturing). Our results also suggest that previous estimates of the effect of external agglomerations may be overestimated because the existing literature abstracted from internal agglomerations.