Financial Factors in Plant Location Decisions: A Case Study in the Greek Metal Industry

Aims to identify factors which affect the location decisions of companies in the Greek metal industry. Attempts to determine what these factors are, how important they are relative to each other and how important taxes and inducements (financial factor) are in the process of location decision making. The methodology employs: a point allocation system to evaluate the relative importance of the various location factors, experts′ opinion and mail questionnaire for data collection,experience in undertaking new investment for drawing the sample firms, a prospective approach, and non‐parametric statistics. The results are: 16 factors are identified; labour is the first, and financial factor is the second in importance; and the difference in importance between financial factor and other remaining factors is not statistically significant. Concludes that, given the evidence there would be nothing to lose and everything to gain from a much more critical approach to the use of the financial factor as an instrument of regional policy.