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Why do firms locate where they do? (English)

The metropolitan Sao Paulo region still has substantial agglomeration economies which enhance the productivity of plants located there. A doubling of distance from the center of the metropolitan region, all other things held constant, is associated with about a nine percent decline in productivity. At the same time factor costs such as wages are substantially lower outside the metropolitan region suggesting manufacturing plants may actually be more...
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Hansen,Keith E..

Why do firms locate where they do? (English). Water Supply and Urban Development Department discussion paper|no. UDD 25 Washington, DC: World Bank. http://documents.worldbank.org/curated/en/328181492128049274

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