International relocation: firm and industry determinants

This article is the first to explore the determinants of international relo cation of a firm. It is found that labour intensive firms in a highly indus trialized and open economy such as Belgium tend to relocate more to other c ountries than their highly productive capital. intensive counterparts. Acce ss to a global network, firm size, and the rate of innovation have a positi ve effect on the probability of relocation. Uncertainty has a negative impa ct on the probability of relocation. The positive effect of firm size and p rofitability on the relocation decision is clearly distinct from its effect on the exit decision of a firm. (C) 2000 Elsevier Science S.A. All rights reserved. JEL classivication: F21; F23.