Effective Factors of Industrial Firm Location with Respect to Behavioral Approaches

Economic successful of a firm depends on not only to technical and economic efficiency but it also depends on location of firm. Effective factors on industrial firm location can analyze from Neoclassical, Institutional and behavioral approaches. From Neoclassical and Institutional view, Effective factors are external factors like proximity to infrastructure, availability to labor, transportation cost, and taxation and so on. While behavioral view confirms role of inter factors of firm like size, type of industry and so on. Therefore, this study mainly tries to survey the factors that effect on industrial firm location with respect to behavioral approaches. All of new industrial firm that established during 1380-1389 in Yazd province are data of this study. The results of this study indicate large, labor- intensive and privacy firms are located near large cities. Government’s incentives cause firms not located in large cities and move to location that there are government’s incentives. Also, firms in first stages of cycle of production are located in large cities.