Quasi-Economic Locational Determinants of Large Foreign Headquarters: The Case of New York City

Abstract

This study investigates, through surveys and interviews, the attitudes of foreign headquarters in New York City regarding nineteen quasi-economic locational determinants. Using common factor analysis and literature on geographic location theory, the determinants were grouped within five locational factors. The findings indicate that the headquarters have strong locational preferences, namely access to flows of information, personal contacts, intermetropolitan transportation networks, and that they have strong linkages to advanced corporate services in the city. However, the executives interviewed perceive that the benefits of agglomeration are dispersing and the importance of a head-quarters center location is declining. Further, the findings diminish the notion that a large labor pool and high-quality environmental infrastructure are critical location determinants. The data and conclusions could have a significant impact on urban development strategies in other large or emerging central cities. Public policy initiatives are discussed.