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Do firms in clusters perform better? Lessons from wood-processing industries in new EU member states

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  • Stojčić, Nebojša
  • Anić, Ivan-Damir
  • Aralica, Zoran

Abstract

The economic structure of many advancing economies is dominated by labour-, scale. and resource-intensive industries. Recent advances in the field of digital technologies threaten the foundations of these traditional sectors and motivate the search for policies that would help sustain jobs and secure the survival and growth of firms. The European Union places clusters high on the policy agenda as instruments for fostering industrial transformation, and increasing firm performance and competitiveness. This paper investigates the impact of clusters on firm performance in traditional wood-processing and furniture industries from two new Central European member states of the European Union during the post-crisis period of 2013–2016. The findings indicate that clusters have a positive impact on firm productivity, sales revenues, size, and export performance. Cluster members also have a higher probability of becoming high growth firms and they offer higher wages to their employees. These findings support the view that clusters are an important driver of firms’ growth and competitiveness and support the existence of cluster policies.

Suggested Citation

  • Stojčić, Nebojša & Anić, Ivan-Damir & Aralica, Zoran, 2019. "Do firms in clusters perform better? Lessons from wood-processing industries in new EU member states," Forest Policy and Economics, Elsevier, vol. 109(C).
    • Handle: RePEc:eee:forpol:v:109:y:2019:i:c:s1389934119300498
    DOI: 10.1016/j.forpol.2019.102043
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    More about this item

    Keywords

    Traditional industries; Industry clusters; Firm performance; New EU member states; Cluster associations;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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