Impact of transport infrastructure on firm formation and post-entry performance: a case study in Hudson County, New Jersey

New establishments play an important role in urban and regional economic development (Acs, 2006; Shukla & Waddell, 1991). Because of the assumption of economic agglomeration, many believe that firms will cluster to share information and take advantage of a pooled labor force, to increase communication, as well as to lower transportation costs. Empirical evidence confirms that transport infrastructure can lead to agglomerations of economic activity (Chatman, Noland, & Klein, 2016; Maoh & Kanaroglou, 2009). Therefore, it seems reasonable that businesses may locate close to transit stations to take advantage of the easy access to transportation for their businesses, the agglomeration externalities/competition of co-location, the nearby amenities, and policy incentives provided by local governments. Consequently, it is critical to understand what factors determine where new establishments will form. However, the relationship between public transit systems and new establishment patterns remains largely unclear. What are the determinants of business formation in densely developed urban areas? How do the determinants of business formation differ across sectors? And how do local contexts (i.e., master plans, local tax incentives) contribute to the process of establishment birth and subsequent survival? What implications does new establishment formation have for urban land use and contemporary urban form? With the assumption that transport infrastructure is a key determinant of new establishment birth and subsequent survival, this dissertation investigates the impacts of changes in the accessibility provided by the Hudson Bergen Light Rail (HBLR) on the spatial patterns of new establishments. Data is derived using geographic information systems (GIS) and the National Establishment Time-Series (NETS) database. Negative binomial models and GEE models are constructed to evaluate the associations of new establishments in different sectors with proximity to rail stations, and determinants of new establishment survival are estimated with Cox Proportional-Hazards models. Additionally, qualitative research can provide us with a more specific and contextual understanding of determinants of firm formation. Therefore, how local development policies and attitudes might influence business formation is examined through individual interviews and archival research. By mapping predicted probabilities for each industry and comparing these with observed densities, this dissertation identifies the extent to which locational preferences translate into aggregated land use patterns, revealing how transportation infrastructure influences business location choices and urban land use structure.Ph.D.Includes bibliographical reference