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Where Do Automotive Suppliers Locate and Why?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Rosenbaum, Ted |
| Copyright Year | 2013 |
| Abstract | Many foreign-owned automotive assemblers and suppliers have recently opened plants in the American South away from the historic industry center in the Midwest. Utilizing detailed data on vertical relationships, I estimate supplier variable costs and simulate equilibrium supplier plant locations. For foreign-owned suppliers, being in a right-to-work state decreases supplier costs by an amount equivalent to being 2,800 miles closer to the downstream assembler, but for domestic-owned suppliers, this impact is equivalent to only 1,400 miles. Simulating equilibrium supplier plant locations, the main driver of foreign-owned supplier plants towards the South is labor costs and not distance costs or fixed costs. JEL-Classification: L11, L14, L62, R12, J51 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=IIOC2013&paper_id=424 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
