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

  • Giulio Cainelli

    ()

    (University of Padova)

  • Sandro Montresor

    ()

    (University of Bologna)

  • Giuseppi Vittucci Marzetti

    ()

    (University of Milano - Bicocca)

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.

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Paper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0173.

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Length: 27 pages
Date of creation: Oct 2013
Date of revision:
Handle: RePEc:pad:wpaper:0173
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