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Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces

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  • Giulio Cainelli

    () (University of Padova)

  • Sandro Montresor

    () (University of Bologna)

  • Giuseppi Vittucci Marzetti

    () (University of Milano - Bicocca)

Abstract

The paper investigates the effect of spatial agglomeration on firm exit in a dynamic framework. Using a large dataset at the industry-province level for Italy (1998-2007), we estimate a spatial dynamic panel model via a GMM estimator and analyze the short-run impact of specialization and variety on firm exit. Specialization negatively affects firm exit rates in the short-run. The effect is particularly significant for low-tech firms. The impact of variety on firm mortality rates at the industry level is instead less clear, although still negative and significant for low-tech firms.

Suggested Citation

  • Giulio Cainelli & Sandro Montresor & Giuseppi Vittucci Marzetti, 2013. "Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces," "Marco Fanno" Working Papers 0173, Dipartimento di Scienze Economiche "Marco Fanno".
    • Handle: RePEc:pad:wpaper:0173
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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. repec:spr:anresc:v:60:y:2018:i:1:d:10.1007_s00168-017-0849-y is not listed on IDEAS
    3. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9855-9 is not listed on IDEAS
    4. repec:spr:anresc:v:58:y:2017:i:2:d:10.1007_s00168-016-0778-1 is not listed on IDEAS
    5. 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.
    6. Gabor Bekes & Peter Harasztosi, 2015. "Grid and shake - Spatial aggregation and robustness of regionally estimated elasticities," IEHAS Discussion Papers 1526, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    7. Tobias Ebert & Thomas Brenner & Udo Brixy, 2015. "New Firm Survival: The Interdependence between Regional Externalities and Innovativeness," Working Papers on Innovation and Space 2015-05, Philipps University Marburg, Department of Geography.
    8. Anna Ferragina & Fernanda Mazzotta, 2015. "Agglomeration economies in Italy: impact on heterogeneous firms’ exit in a multilevel framework," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 395-440, December.
    9. repec:bla:tvecsg:v:108:y:2017:i:6:p:768-785 is not listed on IDEAS

    More about this item

    Keywords

    Firm exit; Localization; Spatial agglomeration; Specialization; Variety.;

    JEL classification:

    • 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)
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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