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Public support to clusters. A firm level study of French "Local Productive Systems"

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  • MARTIN, Philippe
  • MAYER, Thierry
  • MAYNERIS, Florian

Abstract

This paper analyzes empirically a public policy promoting industrial clusters in France. Cluster policies have become popular in many countries but have not been extensively evaluated. We propose in this paper the first quantitative evaluation of a cluster policy exploiting firm-level data. We use data on production and employment for firms that benefited from the policy and on firms that did not, both before and after the policy started. We first show that the policy selected firms in sectors and regions in relative decline. Second, the policy did not succeed in reversing the relative decline in productivity for the targeted firms. The policy had no robust effect on employment or exports.
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Suggested Citation

  • MARTIN, Philippe & MAYER, Thierry & MAYNERIS, Florian, 2011. "Public support to clusters. A firm level study of French "Local Productive Systems"," LIDAM Reprints CORE 2287, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:2287
    DOI: 10.1016/j.regsciurbeco.2010.09.001
    Note: In : Regional Science and Urban Economics, 41(2), 108-123, 2011
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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • 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)

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