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Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces

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  • Giulio Cainelli

    ()

  • Sandro Montresor

    ()

  • Giuseppe Vittucci Marzetti

    ()

Abstract

The paper investigates the effect of spatial agglomeration on firm exit in a dynamic framework. Using a large dataset at the industry-province level for Italy (1998–2007), we estimate a spatial dynamic panel model via a GMM estimator and analyze the short-run impact of specialization and variety on firm exit. Specialization negatively affects firm exit rates in the short-run. The effect is particularly significant for low-tech firms. The impact of variety on firm mortality rates at the industry level is instead less clear, although still negative and significant for low-tech firms. Copyright Springer Science+Business Media New York 2014

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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 43 (2014)
Issue (Month): 1 (June)
Pages: 213-228

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Handle: RePEc:kap:sbusec:v:43:y:2014:i:1:p:213-228

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: Firm exit; Localization; Spatial agglomeration; Specialization; Variety; R11; R12; L11; L26; G20;

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