Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

Estimation and Inference in Econometrics

http://www3.nccu.edu.tw/%7Ejthuang/What%20are%20the%20determinants%20of%20the%20location%20of%20foreign%20direct%20investment%20The%20Chinese%20experience.pdf

What are the determinants of the location of foreign direct investment? The Chinese experience

Recent theories of economic geography suggest that firms in the same industry may be drawn to the same locations because proximity generates positive externalities or 'agglomeration effects' Under this view, chance events and government inducements can have a lasting influence on the geographical pattern of manufacturing However, most evidence on the causes and magnitude of industry localization has been based on stories, rather than statistics This paper examines the location choices of 751 Japanese manufacturing plants built in the US since 1980 Conditional logit estimates support the hypothesis that industry-level agglomeration benefits play an important role in location decisions

Agglomeration Benefits and Location Choice: Evidence from Japanese Manufacturing Investment in the United States

https://www.nber.org/system/files/working_papers/w4767/w4767.pdf

Agglomeration benefits and location choice: Evidence from Japanese manufacturing investments in the United States

Geography and Trade

https://www.fep.up.pt/docentes/pcosme/Artigos/18-JUE.pdf

Agglomeration and the Location of Foreign Direct Investment in Portugal

Locational Determinants of Japanese Manufacturing Start-Ups in the United States

https://www.fep.up.pt/docentes/pcosme/Artigos/28-JUE.pdf

Home-field advantage: location decisions of Portuguese entrepreneurs

The conditional logit model based on random utility maximization has provided an adequate framework to model firm location decisions. However, in practice, the implementation of this methodology presents problems when one has to handle complex choice scenarios with a large number of spatial alternatives. We posit the Poisson regression as a tractable solution to these problems. We demonstrate that by taking advantage of an equivalence relation between the likelihood function of the conditional logit and the Poisson regression we can, under certain circumstances, easily estimate a conditional logit model regardless of the number of choices. This insight should be particularly useful for studies of economic location.

/pdf/a-tractable-approach-to-the-firm-location-decision-problem-43opv9jard.pdf

A tractable approach to the firm location decision problem

This paper analyzes the location of export-oriented manufacturing investment. The analysis focuses on direct investment in the Caribbean Basin, using micro data for all reported manufacturing plant openings from 1984–87. We test a broad range of influences on country selection and compare the results with the existing literature on foreign direct investment in less-developed countries. The probability of country selection was estimated with a conditional logit model. The estimates were then used to predict the location of Caribbean Basin investments made in 1988 and 1989. Twelve independent variables were tested. Six variables had a statistically significant, positive relationship with plant location: per capita GNP, exchange rate devaluation, the length of income tax holidays, the size of free trade zones, political stability, and manufacturing concentration. Negative relationships were found for the wage rate, inflation rate, transportation cost, and profit repatriation restrictions.

https://link.springer.com/content/pdf/10.1057%2Fpalgrave.jibs.8490228.pdf

Douglas Woodward

Papers

Agglomeration and the Location of Foreign Direct Investment in Portugal

Locational Determinants of Japanese Manufacturing Start-Ups in the United States

Home-field advantage: location decisions of Portuguese entrepreneurs

A tractable approach to the firm location decision problem

The Location of Export-Oriented Foreign Direct Investment in the Caribbean Basin