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A spatial and sectoral analysis of firm demography in Italy

  • Giuseppe Espa

    ()

  • Danila Filipponi

    ()

  • Diego Giuliani

    ()

  • Davide Piacentino

    ()

This paper looks at spatial and sectoral effects on firm entry and exit in Italian NUTS-3 regions, over the period 2004-2009. We use a new version of spatial shift-share decomposition which looks more effectively at the neighbourhood influence, beyond traditionally looking at national, industrial mix and regional-shift components. We separately analyse the sub-periods 2004-2007 and 2007-2009, in order to take into account the 2007 crisis. Results seem to be substantially divergent between the Southern regions, i.e. the poorest areas, and the rest of Italy. The firm demography seems to manifest higher instability over time, i.e. more entries but also more exits, in the Southern regions and this is associated with the presence of industrial mix disadvantage. On other hand, the firm demography is more stable, i.e. less entries but also less exits, in the rest of Italy and this reflects an industrial mix advantage. Such results seems to be widespread within the two macro-areas as the analysis of neighbourhood influence points out. externalities.

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Paper provided by Department of Economics and Management in its series DEM Discussion Papers with number 2013/07.

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Date of creation: 2013
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Handle: RePEc:trn:utwpem:2013/07
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  1. Jean-Pierre Huiban, 2011. "The spatial demography of new plants: urban creation and rural survival," Small Business Economics, Springer, vol. 37(1), pages 73-86, July.
  2. Marcus Dejardin, 2011. "Linking net entry to regional economic growth," Small Business Economics, Springer, vol. 36(4), pages 443-460, May.
  3. Giorgio Fazio & Davide Piacentino, 2010. "A Spatial Multilevel Analysis of Italian SMEs' Productivity," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(3), pages 299-316.
  4. Henry Renski, 2011. "External economies of localization, urbanization and industrial diversity and new firm survival," Papers in Regional Science, Wiley Blackwell, vol. 90(3), pages 473-502, 08.
  5. Martin Andersson & Sierdjan Koster, 2011. "Sources of persistence in regional start-up rates--evidence from Sweden," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 179-201, January.
  6. Zoltan Acs & David Audretsch & Pontus Braunerhjelm & Bo Carlsson, 2012. "Growth and entrepreneurship," Small Business Economics, Springer, vol. 39(2), pages 289-300, September.
  7. Mercedes Delgado & Michael E. Porter & Scott Stern, 2010. "Clusters and entrepreneurship," Journal of Economic Geography, Oxford University Press, vol. 10(4), pages 495-518, July.
  8. Giuseppe Espa & Danila Filipponi & Diego Giuliani & Davide Piacentino, 2014. "Decomposing regional business change at plant level in Italy: A novel spatial shift-share approach," Papers in Regional Science, Wiley Blackwell, vol. 93, pages S113-S135, November.
  9. Shaoming Cheng, 2011. "Business cycle, industrial composition, or regional advantage? A decomposition analysis of new firm formation in the United States," The Annals of Regional Science, Springer, vol. 47(1), pages 147-167, August.
  10. Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer, vol. 46(3), pages 495-518, June.
  11. Suahasil Nazara & Geoffrey J.D. Hewings, 2004. "Spatial Structure and Taxonomy of Decomposition in Shift-Share Analysis," Growth and Change, Wiley Blackwell, vol. 35(4), pages 476-490.
  12. Davide Piacentino & Erasmo Vassallo, 2011. "Exploring the sources of labour productivity growth and convergence in the Italian regions: some evidence from a production frontier approach," The Annals of Regional Science, Springer, vol. 46(2), pages 469-486, April.
  13. De Silva, Dakshina G. & McComb, Robert P., 2012. "Geographic concentration and high tech firm survival," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 691-701.
  14. Catherine Armington & Zoltan Acs, 2002. "The Determinants of Regional Variation in New Firm Formation," Regional Studies, Taylor & Francis Journals, vol. 36(1), pages 33-45.
  15. David Audretsch & Iñaki Peña-Legazkue, 2012. "Entrepreneurial activity and regional competitiveness: an introduction to the special issue," Small Business Economics, Springer, vol. 39(3), pages 531-537, October.
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