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Firms’ death rate and spatial agglomeration. Evidence on the resilience of italian local Production systems

Author

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  • Giulio Cainelli
  • Sandro Montresor
  • Marzetti Giuseppe Vittucci

Abstract

The paper investigates the role spatial agglomeration has in affecting firm mortality of industries. In particular, the role of variety and specialization is addressed, along with the extent to which industrial clusters can be retained industrial districts. Empirical evidence is provided for a large panel of Italian provinces and manufacturing sectors, over the period 1995-2007. Urbanization economies, rather than localization ones, significantly diminish firm mortality of industries at the local level. The same holds true for industrial variety, even far from the specialization core. Industrial districts, instead, are neither safe nor dangerous places for firms, unless variety is controlled for. Preliminary evidence is also provided by the serial and spatial autocorrelation of firm’ death and start-up rates.

Suggested Citation

  • Giulio Cainelli & Sandro Montresor & Marzetti Giuseppe Vittucci, 2012. "Firms’ death rate and spatial agglomeration. Evidence on the resilience of italian local Production systems," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2012(3), pages 101-126.
  • Handle: RePEc:fan:restre:v:html10.3280/rest2012-003006
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    Citations

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    Cited by:

    1. Anna Maria Ferragina & Fernanda Mazzotta, 2014. "Agglomeration economies and global activities: impact on firm survival," ERSA conference papers ersa14p348, European Regional Science Association.
    2. Anna Ferragina & Fernanda Mazzotta, 2015. "Agglomeration economies in Italy: impact on heterogeneous firms’ exit in a multilevel framework," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 395-440, December.

    More about this item

    Keywords

    Mortalità di impresa; distretti industriali; agglomerazione spaziale; varietà;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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