Industrial Location at a Local Level: Comments on the Territorial Level of the Analysis

This paper contributes to the existing literature on industrial location by discussing the territorial levels that are used in location analysis. We use data for new manufacturing firms and analyse the advantages and disadvantages of performing location analyses at three levels: municipality, county and travel‐to‐work areas. We show that location determinants vary according to the territorial level used in the analysis and conclude that the level at which the investigation is performed should be carefully selected.