Modelling firm relocation decision behaviour in the Tokyo metropolitan region, through discrete choice theory
Modelling firm relocation decision behaviour in the Tokyo metropolitan region, through discrete choice theory

Summary/Abstract: The objective of this paper is to present discrete choice models incorporating spatial effects to analyse firms’ relocation decision making behaviour, in order to better understand the key factors that influence firms’ decisions on where to relocate in the Tokyo metropolitan region. In the proposed framework two decision points in there location process are assumed and maintained in the micro-simulation modelling. The first decision, named the‘ move or stay decision’, is modelled by abinary logit model, where the outcome variable is the probability of moving. The second decision, named the ‘zone choice decision’, is modelled by a mixed logit modelin corporating spatial effects; the outcome variable is the conditional probability of choosing a given zone. The relocation decision structure of each enterprise, represented by a nested logit model, is used to determine the best model. In a case study some facts on the relocation behaviour of firms in the Tokyo metropolitan region are investigated. In addition, the observations used to estimate the relocation model are random selections from the data source. The results show that the proposed model reconfirms the important role of spatial interactions among individual enterprises and among zones in a firm’s relocation decision process.

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