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A spatial analysis of health and pharmaceutical firm survival

Author

Listed:
  • Giuseppe Arbia
  • Giuseppe Espa
  • Diego Giuliani
  • Rocco Micciolo

Abstract

The presence of knowledge spillovers and shared human capital is at the heart of the Marhall-Arrow- Romer externalities hypothesis. Most of the earlier empirical contributions on knowledge externalities, however, considered data aggregated at a regional level so that conclusions are based on the arbitrary definition of jurisdictional spatial units: this is the essence of the so-called Modifiable Areal Unit Problem. A second limitation of these studies is constituted by the fact that, somewhat surprisingly, while concentrating on the effects of agglomeration on firm creation and growth, the literature has, conversely, largely ignored its effects on firm survival. The present paper aims at contributing to the existing literature by answering to some of the open methodological questions reconciling the literature of Cox proportional hazard with that on point pattern and thus capturing the true nature of spatial information. We also present some empirical results based on Italian firm demography data collected and managed by the Italian National Institute of Statistics (ISTAT).

Suggested Citation

  • Giuseppe Arbia & Giuseppe Espa & Diego Giuliani & Rocco Micciolo, 2015. "A spatial analysis of health and pharmaceutical firm survival," DEM Discussion Papers 2015/05, Department of Economics and Management.
  • Handle: RePEc:trn:utwpem:2015/05
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    3. Bernadette Power & Justin Doran & Geraldine Ryan, 2019. "The effect of agglomeration economies on firm deaths: A comparison of firm and regional based approaches," Urban Studies, Urban Studies Journal Limited, vol. 56(16), pages 3358-3374, December.

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    Keywords

    Agglomeration; Firm survival; Spatial econometrics;
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