Do agglomeration economies matter where natural endowments are? Lessons from Greece

Abstract

This paper examines whether the location factors related to the rich natural endowments of Greece (first nature of geography) affect those of the proximity to suppliers, similar firms and the capital (second nature of geography). It finds that geomorphology and climate reinforce all the second‐nature factors. Sea access favours firms’ linkages, and natural resources attract both firms’ linkages and localization economies. Nevertheless, the high‐quality natural environment of certain areas cannot coexist with localization and urbanization economies. These findings seem to be stronger for domestic than for foreign firms, while the differences between sectors are sensitive to the geography factors.

Do geography and institutions affect entrepreneurs’ future business plans? Insights from Greece

“…These economies exist mainly due to the job specialisation, the lowest prices that can be achieved in input supplies, the provision of specialised support services, and the potential dissemination of knowledge. The localisation economies can be proxied by the proximity to competitors (Rasvanis & Tselios, 2021). The urbanisation economies refer to the benefits which derive from being located in large urban centres.…”

“…As the largest urbanisation economies are observed in the capitals of Rasvanis and Tselios Journal of Innovation and Entrepreneurship (2023) 12:3 most European countries (e.g. Paris, London and Athens), the urbanisation economies can be proxied by the proximity to the capital (Louri, 1988;Rasvanis & Tselios, 2021). Finally, the geographical location of the country on the world map, which is related to factors such as proximity and relative distance from other economically and commercially developed countries or emerging markets ('second-nature' geography), may play a central role in both attracting and developing businesses in this country.…”

Urbanization and productivity at a global level: new empirical evidence for the services sector

“…In addition to natural amenities (Rasvanis & Tselios, 2021), the productive advantage of the industrial sector is explained by economies of scale and scope (Davis & Casis, 1946). Manufacturing also requires skilled labor, increased investment in infrastructure, information and communication technologies (ICT) (Meliciani & Savona, 2015), and the promotion of innovation.…”