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Small Business Economics

, Volume 43, Issue 1, pp 213–228 | Cite as

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

Article

Abstract

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.

Keywords

Firm exit Localization Spatial agglomeration Specialization Variety 

JEL Classifications

R11 R12 L11 L26 G20 

Notes

Acknowledgements

The authors would like to thank the participants to the VII Workshop of the European Network of the Economics of the Firm (ENEF) (Amsterdam, September 16–17, 2010) and the XXXII Annual Scientific Conference of the Italian Association of Regional Sciences (Milan, September 15–17, 2011) for their useful comments. They are particularly indebted to Alessia Amighini and Roberto Basile, for their suggestions on a previous version of the paper. The authors gratefully acknowledge support for this research from the Autonomous Province of Trento (OPENLOC Project). The usual disclaimers apply.

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© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Department of Economics and ManagementUniversity of PaduaPaduaItaly
  2. 2.CERIS-CNRMilanItaly
  3. 3.Department of EconomicsUniversity of BolognaBolognaItaly
  4. 4.JRC-IPTS, European CommissionSevilleSpain
  5. 5.Department of Sociology and Social ResearchUniversity of Milano-BicoccaMilanItaly

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