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Public support to clusters. A firm level study of french 'local productive systems'

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  • Florian Mayneris

    (Ecole d'Économie de Paris - Paris School of Economics)

  • Thierry Mayer

    (Département d'économie)

  • Philippe Martin

    (Département d'économie)

Abstract

This paper analyzes empirically a public policy promoting industrial clusters in France. Cluster policies have become popular in many countries but have not been extensively evaluated. We propose in this paper the first quantitative evaluation of a cluster policy exploiting firm-level data. We use data on production and employment for firms that benefited from the policy and on firms that did not, both before and after the policy started. We first show that the policy selected firms in sectors and regions in relative decline. Second, the policy did not succeed in reversing the relative decline in productivity for the targeted firms. The policy had no robust effect on employment or exports.

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Paper provided by Sciences Po in its series Sciences Po publications with number info:hdl:2441/c8dmi8nm4pdjkuc9g8mc0ghsn.

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Date of creation: Mar 2011
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Publication status: Published in Regional Science and Urban Economics, 2011
Handle: RePEc:spo:wpmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8mc0ghsn

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  1. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008. "Spatial wage disparities: Sorting matters!," Journal of Urban Economics, Elsevier, vol. 63(2), pages 723-742, March.
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  4. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," NBER Working Papers 5067, National Bureau of Economic Research, Inc.
  5. Florian Mayneris & Thierry Mayer & Philippe Martin, 2008. "Spatial Concentration and Firm-Level Productivity in France," Sciences Po publications 6858, Sciences Po.
  6. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
  7. Matthieu Crozet & Thierry Mayer & Jean-Louis Mucchielli, 2004. "How do firms agglomerate? A study of FDI in france," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
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  15. Alvarez, Roberto & Görg, Holger, 2009. "Multinationals and plant exit: Evidence from Chile," International Review of Economics & Finance, Elsevier, vol. 18(1), pages 45-51, January.
  16. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Wiley Blackwell, vol. 70(2), pages 317-341, 04.
  17. Beason, R. & Weinstein, D.E., 1993. "Growth, Economies of Scale, and Targeting in Japan (1955- 1990)," Harvard Institute of Economic Research Working Papers 1644, Harvard - Institute of Economic Research.
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