Abstract
Abstract. This article analyses the spatial pattern of plant start‐ups and plant relocations in Portugal between 1986 and 1997. The results show that start‐ups and relocations are not attracted by the same set of location characteristics. The probability of a plant start‐up is more strongly related to increases in local market size and labour force qualification, lower labour costs, and a more diversified economic environment. In contrast, relocations show a greater preference for areas with better national market accessibility, availability of producer services and a larger industrial basis. Relocations are also much more strongly attracted by the provision of inter‐regional motorways. The results are consistent with the assertion that firms value location attributes differently over the plant life cycle.
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