Kaarel Kilvits

(Tallinn University of Technology, Akadeemia tee 3, Tallinn 12618, Estonia)

 

 

Abstract: There are many factors which affect the location of manufacturing enterprises. Nowadays, soft factors such as “quality of life” (housing and living environment), “image” of places or “private” reasons are important determinants. A high-quality living environment is an increasingly important location decision factor first of all for companies who need to attract young and talented educated specialists. Location priorities are believed to change according to the function of the site. Headquarter needs international airport, central city location, hotels, restaurants. Research and development unit needs universities, science parks. Manufacture and distribution need good transportation system. If housing and living environment are satisfactory only in some regions, investment-intensive new high-technology, high value-added jobs created only there. And only top specialists and skilled workers in these regions will benefit from these, not “ordinary people” in other regions. Such structural changes may even more increase economic, social, regional etc. stratification.

 

 

Key words: delocalization; housing; industry; relocation

 

JEL codes: F21, F22, L60