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Regional Integration and Firm Location Choices: A Long Run Approach to the Cork Industry in the Iberian Peninsula

Author

Listed:
  • Francisco Parejo
  • Amélia Branco
  • João Carlos Lopes
  • José Rangel Preciado

Abstract

The cork sector is a relevant case study given the economic importance of this industry for some regions (value added, employment and rural development). This industry is also important because of its contribution to environmental sustainability as it uses a natural renewable raw material. Portugal and Spain are the most important producers of cork and exporters of manufactured cork products (stoppers and agglomerates). The main purpose of this paper is to study the economic integration and the historical changes of cork business location choices in the Iberian Peninsula. We start by studying the historical roots, motivations and economic consequences of the delocalization of Catalonian firms to Portugal during the first quarter of the 20th century. Then a comparison is made with the recent process of delocalization of an anchor firm of Aveiro industrial district (Corticeira Amorim) to Spain. The theoretical framework of this study is the industry and cluster life cycles as well as the recent insights from the evolutionary economic geography.

Suggested Citation

  • Francisco Parejo & Amélia Branco & João Carlos Lopes & José Rangel Preciado, 2013. "Regional Integration and Firm Location Choices: A Long Run Approach to the Cork Industry in the Iberian Peninsula," Working Papers Department of Economics 2013/18, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
  • Handle: RePEc:ise:isegwp:wp182013
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    References listed on IDEAS

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    1. repec:dgr:rugsom:02d31 is not listed on IDEAS
    2. Fiorenza Belussi & Silvia Rita Sedita, 2008. "Life Cycle vs. Multiple Path Dependency in Industrial Districts," European Planning Studies, Taylor & Francis Journals, vol. 17(4), pages 505-528, November.
    3. F. Javier Escribá & Mª José Murgui, 2008. "Factores de localización regional en las inversiones industriales," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 16(2), pages 101-125, Autumn.
    4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    5. Francisco Manuel Parejo Moruno, 2010. "El negocio del corcho en España durante el siglo XX," Estudios de Historia Económica, Banco de España;Estudios de Historia Económica Homepage, number 57, December.
    6. Max-Peter Menzel & Dirk Fornahl, 2010. "Cluster life cycles--dimensions and rationales of cluster evolution," Industrial and Corporate Change, Oxford University Press, vol. 19(1), pages 205-238, February.
    7. Branco, Amélia & Parejo, Francisco M., 2008. "Incentives or obstacles? institutional aspects of the cork business in the Iberian Peninsula (1930–1975)," Revista de Historia Económica, Cambridge University Press, vol. 26(01), pages 17-43, January.
    8. Amélia Branco & João Carlos Lopes, 2013. "Vantagens da concentração geográfica da produção: o caso da indústria corticeira de Santa Maria da Feira," Working Papers Department of Economics 2013/04, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    9. Wheeler, David & Mody, Ashoka, 1992. "International investment location decisions : The case of U.S. firms," Journal of International Economics, Elsevier, vol. 33(1-2), pages 57-76, August.
    10. Pellenbarg, P.H. & Wissen, L.J.G. van & Dijk, J. van, 2002. "Firm relocation: state of the art and research prospects," Research Report 02D31, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
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    More about this item

    Keywords

    Regional integration; firm location choices; cork industry; Iberian Peninsula.;

    JEL classification:

    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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