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Spatial Variations in Net Entry Rates of Establishments in Greek Manufacturing Industries: An Application of the Shift-Share ANOVA Model

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  • G Fotopoulos
  • N Spence

Abstract

Net entry rates of manufacturing establishments across Greek regions are examined here by means of both an appropriately modified conventional shift-share method and a linear-model variant. All results accord with earlier findings for UK regions, signifying that the main source of variation in spatial net entry patterns stems from within-industry variation in locational preferences across space. However, analysis by establishment size indicates that the predominance of within-industry variation, expressed by the magnitude and the significance of the competition effect, is much less marked for larger establishments. The determinants of spatial variations in net entry rates across Greek regions and over manufacturing sectors emphasise local economic conditions, especially for smaller firms. In methodological terms, the one-way ANOVA-based variant of shift-share analysis is criticised on the grounds that the alleged numerical equivalence between the estimated industry-mix component and that calculated conventionally is an artefact of little value. It is demonstrated that this numerical equivalence is sustained even when fundamental estimation assumptions are violated and despite the use of only partial information.

Suggested Citation

  • G Fotopoulos & N Spence, 1999. "Spatial Variations in Net Entry Rates of Establishments in Greek Manufacturing Industries: An Application of the Shift-Share ANOVA Model," Environment and Planning A, , vol. 31(10), pages 1731-1755, October.
    • Handle: RePEc:sae:envira:v:31:y:1999:i:10:p:1731-1755
    DOI: 10.1068/a311731
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    References listed on IDEAS

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    1. Fotopoulos, Georgios & Spence, Nigel, 1997. "Net Entry of Firms into Greek Manufacturing: The Effects of Business Conditions," Small Business Economics, Springer, vol. 9(3), pages 239-253, June.
    2. D R Holden & J K Swales & A G M Nairn, 1987. "The Repeated Application of Shift-Share: A Structural Explanation of Regional Growth?," Environment and Planning A, , vol. 19(9), pages 1233-1250, September.
    3. Georgios Fotopoulos & Nigel Spence, 1999. "Spatial Variations in New Manufacturing Plant Openings: Some Empirical Evidence from Greece," Regional Studies, Taylor & Francis Journals, vol. 33(3), pages 219-229.
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    Cited by:

    1. Shaoming Cheng, 2011. "Business cycle, industrial composition, or regional advantage? A decomposition analysis of new firm formation in the United States," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 147-167, August.
    2. Liargovas, Panagiotis & Daskalopoulou, Irene, 2011. "Capital allocation in the Greek regions," Journal of Policy Modeling, Elsevier, vol. 33(6), pages 866-888.
    3. Klimis Vogiatzoglou & Theodore Tsekeris, 2013. "Spatial Agglomeration of Manufacturing in Greece: Sectoral Patterns and Determinants," European Planning Studies, Taylor & Francis Journals, vol. 21(12), pages 1853-1872, December.
    4. Kent Eliasson & Hans Westlund, 2013. "Attributes influencing self-employment propensity in urban and rural Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 479-514, April.
    5. Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2014. "Classic and Spatial Shift-Share Analysis of State-Level Employment Change in Brazil," Advances in Spatial Science, in: Karima Kourtit & Peter Nijkamp & Robert Stimson (ed.), Applied Regional Growth and Innovation Models, edition 127, chapter 0, pages 139-172, Springer.
    6. Matias Mayor & Ana Jesus Lopez & Rigoberto Perez, 2007. "Forecasting Regional Employment with Shift-Share and ARIMA Modelling," Regional Studies, Taylor & Francis Journals, vol. 41(4), pages 543-551.
    7. Georgios Fotopoulos & Nigel Spence, 1999. "Spatial Variations in New Manufacturing Plant Openings: Some Empirical Evidence from Greece," Regional Studies, Taylor & Francis Journals, vol. 33(3), pages 219-229.
    8. Irene DASKALOPOULOU & Panagiotis LIARGOVAS, 2008. "Regional And Sectoral Location Patterns Of New Firms: The Case Of Greece," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 8(2), pages 99-110.
    9. Georgios Fotopoulos & Dimitris Kallioras & George Petrakos, 2010. "Spatial variations of Greek manufacturing employment growth: The effects of specialization and international trade," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 109-133, March.
    10. Julie Le Gallo & Yiannis Kamarianakis, 2011. "The Evolution of Regional Productivity Disparities in the European Union from 1975 to 2002: A Combination of Shift-Share and Spatial Econometrics," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 123-139.

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