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The effect of agglomeration economies and geography on the survival of accommodation businesses in Sicily

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  • Davide Piacentino
  • Martina Aronica
  • Diego Giuliani
  • Andrea Mazzitelli
  • Maria Francesca Cracolici

Abstract

The study explores the geographical pattern of the accommodation industry in the Italian insular region of Sicily, focusing on the determinants of the risk of market exit. We adopt a standard framework of business survival analysis where agglomeration economies play an important role. We then extend the analysis by considering the role of geography to explore whether the risk of market exit depends on nearness to desirable amenities. The geography is here measured by the distance from the coast and the altitude of the place where the firm is located. When we look at the entire population of accommodation firms that started between 2010 and 2014, we find evidence that the risk of failure increases for those which are over 2 km from the coast.

Suggested Citation

  • Davide Piacentino & Martina Aronica & Diego Giuliani & Andrea Mazzitelli & Maria Francesca Cracolici, 2021. "The effect of agglomeration economies and geography on the survival of accommodation businesses in Sicily," Spatial Economic Analysis, Taylor & Francis Journals, vol. 16(2), pages 176-193, April.
    • Handle: RePEc:taf:specan:v:16:y:2021:i:2:p:176-193
    DOI: 10.1080/17421772.2020.1836389
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    Cited by:

    1. Arnab Bhattacharjee & Ornella Maietta & Fernanda Mazzotta, 2023. "Spatial agglomeration, innovation and firm survival for Italian manufacturing firms," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(3), pages 318-345, July.
    2. Theodore Metaxas & Athanasios Romanopoulos, 2023. "A Literature Review on the Financial Determinants of Hotel Default," JRFM, MDPI, vol. 16(7), pages 1-19, July.

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