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The Clustering of Cork Firms in Santa Maria da Feira: Why History Matters

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  • Joao Carlos Lopes
  • Amélia Branco

Abstract

This paper studies the reasons why most Portuguese cork manufacturing firms are concentrated in Santa Maria da Feira, a small municipality in the north of the country, whereas the bulk of the cork is produced in the south (Alentejo and Ribatejo). It starts with a brief introductory discussion of the advantages and limitations of clusters and industrial districts, together with an illustration of the recent theoretical findings of evolutionary economic geography. Next, a comparative analysis is made of the economic performance over the last decade of firms located in Santa Maria da Feira and other regions, leading to a powerful conclusion that points to the absence of any clear advantages for clustered firms. Finally, an attempt is made to discover the historical and socio-political reasons why so many cork firms are concentrated in Santa Maria da Feira. These are shown to be indispensable for understanding and substantiating the business location decisions of most Portuguese cork entrepreneurs.

Suggested Citation

  • Joao Carlos Lopes & Amélia Branco, 2013. "The Clustering of Cork Firms in Santa Maria da Feira: Why History Matters," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 3(1), pages 354-354.
    • Handle: RePEc:ers:ijfirm:v:3:y:2013:i:1:p:354
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    References listed on IDEAS

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    1. Ron Martin & Peter Sunley, 2011. "Conceptualizing Cluster Evolution: Beyond the Life Cycle Model?," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1299-1318, November.
    2. 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 / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 26(1), pages 17-43, January.
    3. Ron Martin & Peter Sunley, 2003. "Deconstructing clusters: chaotic concept or policy panacea?," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 5-35, January.
    4. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    5. Ron A. Boschma & Koen Frenken, 2006. "Why is economic geography not an evolutionary science? Towards an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 273-302, June.
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