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Detecting space–time agglomeration processes over the Great Recession using firm-level micro-geographic data

Author

Listed:
  • Giulio Cainelli

    (University of Padova)

  • Roberto Ganau

    (University of Padova
    London School of Economics and Political Science)

  • Yuting Jiang

    (Guangdong University of Finance)

Abstract

We analyze the spatio-temporal agglomeration dynamics that occurred in the Italian manufacturing industry during the recent period of the Great Recession. To study this phenomenon, we employ three different statistical methods—namely, Ellison and Glaeser’s index of industrial geographic concentration, the spatial K-function, and the space–time K-function—, and rely on a large sample of geo-referenced, single-plant manufacturing firms observed over the period 2007–2012. First, we demonstrate that different statistical techniques can lead to (very) different results. Second, we find that most Italian manufacturing sectors experienced spatial dispersion processes during the period of the Great Recession. Finally, we show that space–time dispersion processes occurred at small spatial distances and short time horizon, although we do not detect statistically significant space–time interactions.

Suggested Citation

  • Giulio Cainelli & Roberto Ganau & Yuting Jiang, 2020. "Detecting space–time agglomeration processes over the Great Recession using firm-level micro-geographic data," Journal of Geographical Systems, Springer, vol. 22(4), pages 419-445, October.
  • Handle: RePEc:kap:jgeosy:v:22:y:2020:i:4:d:10.1007_s10109-020-00332-4
    DOI: 10.1007/s10109-020-00332-4
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    More about this item

    Keywords

    Agglomeration dynamics; Spatial methods; Manufacturing industry; Italy;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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