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Are clusters resilient? Evidence from Canadian textile industries

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  • Behrens, Kristian
  • Boualam, Brahim
  • Martin, Julien

Abstract

We investigate whether plants inside and outside geographic clusters differ in their resilience to adverse economic shocks. To this end, we develop a bottom-up procedure to delimit clusters using Canadian geocoded plant-level data. Focussing on the textile and clothing industries and exploiting the dramatic changes faced by that sector between 2001 and 2013, we find no evidence that plants in clusters are more resilient than plants outside clusters: they are neither less likely to die nor more likely to adapt by switching their main line of business. However, conditional on switching, plants in urbanized clusters are more likely to transition to services.

Suggested Citation

  • Behrens, Kristian & Boualam, Brahim & Martin, Julien, 2017. "Are clusters resilient? Evidence from Canadian textile industries," CEPR Discussion Papers 12184, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:12184
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    More about this item

    Keywords

    geo-coded data; Geographic clusters; Multifibre Arrangement; resilience; textile and clothing industries;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • 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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