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Localization effects of firm startups and closures in the Netherlands

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  • Corina Huisman

    ()

  • Leo van Wissen

    ()

Abstract

In this article localization trends as a result of startups and closures are investigated in the Netherlands, using a distance-based approach. A major advantage of this method is that it does not suffer from aggregation bias that is inherent in area-based methods. This method controls for the existing spatial clustering of the industry. Plant openings and closures can either reinforce or weaken the existing localization pattern. We studied these localization tendencies for industries at the one-digit level. The major finding is that plant closures have a strong deconcentration effect, at the local as well as the regional level. Startups have a concentration effect at smaller spatial scales, but beyond 18 km this component also contributes to deconcentration. This result is in line with the spatial process of sprawl for most economic activities. However, results are different for economic sectors, and manufacturing clearly deviates from this general pattern, because it shows a localization trend except at the very small spatial level. Based on these results we do not find much support, except in the manufacturing industry, that industry dynamics in terms of new firm formation and closures, leads to stronger spatial agglomeration tendencies in the Netherlands. Copyright Springer-Verlag 2004

Suggested Citation

  • Corina Huisman & Leo van Wissen, 2004. "Localization effects of firm startups and closures in the Netherlands," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 291-310, June.
  • Handle: RePEc:spr:anresc:v:38:y:2004:i:2:p:291-310
    DOI: 10.1007/s00168-004-0196-7
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    File URL: http://hdl.handle.net/10.1007/s00168-004-0196-7
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    Citations

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    Cited by:

    1. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. Calá, Carla Daniela & Manjón-Antolín, Miguel & Arauzo-Carod, Josep-Maria, 2017. "Regional determinants of exit across firms' size: evidence from a developing country," Nülan. Deposited Documents 2548, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Arbia, Giuseppe & Espa, Giuseppe & Giuliani, Diego & Dickson, Maria Michela, 2014. "Spatio-temporal clustering in the pharmaceutical and medical device manufacturing industry: A geographical micro-level analysis," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 298-304.
    4. Calá, Carla Daniela & Manjón-Antolín, Miguel & Arauzo-Carod, Josep-Maria, 2014. "The determinants of exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 1976, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    5. repec:bla:tvecsg:v:108:y:2017:i:6:p:768-785 is not listed on IDEAS
    6. Carla Calá & Josep-Maria Arauzo-Carod & Miguel Manjón-Antolín, 2015. "The determinants of exit in a developing country: core and peripheral regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 927-944, May.

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