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Abstract

The Tobit estimation procedure was used to determine the factors which influence the location and size of high technology manufacturers in nonmetro areas in the West. The results indicate that high tech branch plants tend to locate in populous counties adjacent to Metropolitan Statistical Areas (MSAs). Percent of local employment in manufacturing and agriculture was inversely related to branch plant employment, and the stock of human capital was not significantly related to employment. High tech unit plants also exhibited a propensity to locate in the more populous counties. Unlike branch plants, the unit concerns were more likely to develop or locate in communities with a highly educated work force and at greater distances from metro areas. The unit plants better fit the perception of high tech plants selecting high amenity locations with abundant skilled labor.

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