Logistics firms play a crucial role in overcoming time and distance constraints in supply chain management. However, little is known about their location patterns. This paper fills the gap by studying the logistics of multi-national enterprises' location choices across 380 NUTS 3. Using data on 1777 foreign direct investments (FDIs), our findings reveal that forward linkages with a region's retail and wholesale industry exert a stronger impact than intermediate production demand. Results are robust to the inclusion of standard FDIs' determinants and to controls for spatial dependence. Findings suggest that intersectoral demand from downstream sectors positively affect logistics operators independently from the manufacturing base.
Bibliographical noteCopyright © 2023 The Author. Papers in Regional Science published by John Wiley & Sons Ltd on behalf of Regional Science Association
International. This is an open access article under the terms of the Creative Commons Attribution License [https://creativecommons.org/licenses/by/4.0/], which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
- forward linkages
- logistics services
- regional specialization