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

Cainelli, Giulio; Montresor, Sandro; Marzetti, Giuseppe Vittucci

doi:10.1007/s11187-013-9532-6

Cited by 40 publications

(43 citation statements)

References 79 publications

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“…In 11 Of course, business incentive programmes represent only one of a number of causes that might determine firm births and exits. For a recent contribution on the main determinants of firm births and exits see Cainelli et al (2014). 12 Matching techniques have been used by several scholars to analyse the effectiveness of place-based policies (see, among others, Bernini and Pellegrini 2011; Accetturo and de Blasio 2012).…”

Section: Applicationmentioning

confidence: 99%

Industrial policy evaluation in the presence of spillovers

Cerqua

Pellegrini

2017

Small Bus Econ

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The shortage of studies on spatial spillovers of capital subsidy policies is rather surprising, considering that such policies are usually designed to generate spatial externalities. We propose a new framework that allows positive agglomeration effects to be contrasted with the negative cross-sectional substitution and the crowding-out effect. The global evaluation of the ATT and the spillover parameters shifts the spotlight from the policy effect on subsidised firms to the global effect of capital subsidy policies on the targeted territory. The empirical evaluation of a policy in Italy mainly directed towards small-and medium-sized firms shows that the impact on investments, turnover and employment is positive and large, but is negative on TFP. However, the employment growth is partially determined to the detriment of the untreated firms.

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Section: Applicationmentioning

confidence: 99%

Industrial policy evaluation in the presence of spillovers

Cerqua

Pellegrini

2017

Small Bus Econ

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“…For instance Cainelli et al (2014) analyses firm exits as a function of agglomeration and uses neighboring Italian regions in a dynamic panel model estimated by GMM. Similarly to our model, this allows testing of decay over space.…”

Section: Comparison With Other Methodsmentioning

confidence: 99%

Grid and shake: spatial aggregation and the robustness of regionally estimated elasticities

Békés

Harasztosi

2017

Ann Reg Sci

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This paper proposes a simple method measuring spatial robustness of estimated coefficients and considers the role of administrative districts and regions' size. The procedure, dubbed "Grid and Shake", offers a solution for a practical empirical issue, when one compares a variables of interest across spatially aggregated units, such as regions. It may, for instance, be applied to investigate competition, agglomeration, spillover effects. The method offers to (i) have carry out estimations at various levels of aggregation and compare evidence, (ii) treat uneven and non-random distribution of administrative unit size, (iii) have the ability to compare results on administrative and artificial units, and (iv) be able to gouge statistical significance of differences. To illustrate the method, we use Hungarian data and compare estimates of agglomeration externalities at various levels of aggregation. We find that differences among estimated elasticities found at various levels of aggregation are broadly in the same range as those found in the literature employing various estimation method. Hence, the method of spatial aggregation seems to be of equal importance to modeling and econometric specification of the estimation. AbstractThis paper proposes a simple method measuring spatial robustness of estimated coefficients and considers the role of administrative districts and regions' size. The procedure, dubbed "Grid and Shake", offers a solution for a practical empirical issue, when one compares a variables of interest across spatially aggregated units, such as regions. It may, for instance, be applied to investigate competition, agglomeration, spillover effects. The method offers to (i) have carry out estimations at various levels of aggregation and compare evidence, (ii) treat uneven and non-random distribution of administrative unit size, (iii) have the ability to compare results on administrative and artificial units, and (iv) be able to gouge statistical significance of differences. To illustrate the method, we use Hungarian data and compare estimates of agglomeration externalities at various levels of aggregation. We find that differences among estimated elasticities found at various levels of aggregation are broadly in the same range as those found in the literature employing various estimation method. Hence, the method of spatial aggregation seems to be of equal importance to modeling and econometric specification of the estimation.

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“…In Europe and the U.S., the previously reviewed factors related to a firm's market entry or survival were translated into physical location characteristics, spatial concentration and diversification of industrial activities, and competition in accordance with industrial concentration, etc. (Basile et al, ; Buenstorf & Guenther, ; Cainelli et al, ; Görg & Strobl, ; Howell et al, ; Lopez‐Garcia & Puente, ; Neffke et al, ; Pe'er & Keil, ; Tavassoli & Jienwatcharamongkhol, ). However, the previous literature (Christie & Sjoquist, ; Falck, ) has stated that location and industrial features need to be reviewed more widely and in detail, because they could be relatively clear determinants of a firm's survival or duration.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The key question in these studies is what factors affect the survival—in other words, closure or duration—of a firm, and studies have shown different results for various industrial sectors and countries . Additionally, previous empirical studies from various perspectives, in conjunction with not only location conditions but also urban and regional economics, have been recently published (Basile, Pittiglio, & Reganati, ; Cainelli, Montresor, & Marzetti, ; Geroski, Mata, & Pedro, ; Howell, He, Yang, & Cindy Fand, ; Low & Brown, ; Pe'er & Keil, ; Tavassoli & Jienwatcharamongkhol, ; Neffke, Henning, & Boschma, ).…”

Section: Introductionmentioning

confidence: 99%

Interaction effects between the agglomerative externalities affecting the survival of small startups

Nam

2019

Growth and Change

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The purpose of this study is to identify the relationship between the survival of firms and the influence of agglomeration economies on firm location using a mixed effect Cox model considering random effects, given the industrial conditions of South Korea. Each agglomerative externality had a negative effect on the survival proportion of small startups except the related variety of the tertiary sector. However, the interaction effects between each externality and the location potential and among agglomerative externalities mostly played a complementary role to the survivability of startups; however certain effects reduced the survivability, and the effects were differentiated for each industrial sector. This study provides an advanced understanding of small firm performance after entry into the market in developing and developed nations.

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

Cited by 40 publications

References 79 publications

Industrial policy evaluation in the presence of spillovers

Industrial policy evaluation in the presence of spillovers

Grid and shake: spatial aggregation and the robustness of regionally estimated elasticities

Interaction effects between the agglomerative externalities affecting the survival of small startups

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