“Location, location, location” applies within companies too
According to my latest research,* companies invest more in plants located closer to headquarters and those plants tend to be more productive. Combining plant-level data with airline data in the U.S. from 1977-2005, I analyzed how the launch of new airline routes affected plant investment and productivity. I found that a new direct route from headquarters city to the city where the plant is located led to an increase in plant