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Regional Integration and Firm Location Choices: A Long Run Approach to the Cork Industry in the Iberian Peninsula

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  • Francisco Parejo
  • Amélia Branco
  • João Carlos Lopes
  • José Rangel Preciado

Abstract

The cork sector is a relevant case study given the economic importance of this industry for some regions (value added, employment and rural development). This industry is also important because of its contribution to environmental sustainability as it uses a natural renewable raw material. Portugal and Spain are the most important producers of cork and exporters of manufactured cork products (stoppers and agglomerates). The main purpose of this paper is to study the economic integration and the historical changes of cork business location choices in the Iberian Peninsula. We start by studying the historical roots, motivations and economic consequences of the delocalization of Catalonian firms to Portugal during the first quarter of the 20th century. Then a comparison is made with the recent process of delocalization of an anchor firm of Aveiro industrial district (Corticeira Amorim) to Spain. The theoretical framework of this study is the industry and cluster life cycles as well as the recent insights from the evolutionary economic geography.

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Bibliographic Info

Paper provided by ISEG - School of Economics and Management, Department of Economics, University of Lisbon in its series Working Papers Department of Economics with number 2013/18.

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Date of creation: Sep 2013
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Handle: RePEc:ise:isegwp:wp182013

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Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC

Related research

Keywords: Regional integration; firm location choices; cork industry; Iberian Peninsula.;

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  1. F. Javier Escribá & Mª José Murgui, 2008. "Factores de localización regional en las inversiones industriales," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 16(2), pages 101-125, Autumn.
  2. Fiorenza Belussi & Silvia Rita Sedita, 2008. "Life Cycle vs. Multiple Path Dependency in Industrial Districts," European Planning Studies, Taylor & Francis Journals, vol. 17(4), pages 505-528, November.
  3. Wheeler, David & Mody, Ashoka, 1992. "International investment location decisions : The case of U.S. firms," Journal of International Economics, Elsevier, vol. 33(1-2), pages 57-76, August.
  4. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  5. Branco, Amélia & Parejo, Francisco M., 2008. "Incentives or obstacles? institutional aspects of the cork business in the Iberian Peninsula (1930–1975)," Revista de Historia Económica, Cambridge University Press, vol. 26(01), pages 17-43, January.
  6. Pellenbarg, P.H. & Wissen, L.J.G. van & Dijk, J. van, 2002. "Firm relocation: state of the art and research prospects," Research Report 02D31, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  7. Max-Peter Menzel & Dirk Fornahl, 2010. "Cluster life cycles--dimensions and rationales of cluster evolution," Industrial and Corporate Change, Oxford University Press, vol. 19(1), pages 205-238, February.
  8. Amélia Branco & João Carlos Lopes, 2013. "Vantagens da concentração geográfica da produção: o caso da indústria corticeira de Santa Maria da Feira," Working Papers Department of Economics 2013/04, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
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