De Silva, Dakshina G. and McComb, Robert P. (2011): Geographic concentration and firm survival.
Download (302kB) | Preview
If localization economies are present, firms within denser industry concentrations should exhibit higher levels of performance than more isolated firms. Nevertheless, research in industrial organization that has focused on the influences on firm survival has largely ignored the potential effects from agglomeration. Recent studies in urban and regional economics suggests that agglomeration effects may be very localized. Analyses of industry concentration at the MSA or county-level may fail to detect important elements of intra-industry firm interaction that occur at the sub-MSA level. Using a highly detailed dataset on firm locations and characteristics for Texas, this paper analyses agglomeration effects on firm survival over geographic areas as small as a single mile radius. We find that greater firm density within very close proximity (within 1 mile) of firms in the same industry increases mortality rates while greater concentration over larger distances reduces mortality rates.
|Item Type:||MPRA Paper|
|Original Title:||Geographic concentration and firm survival|
|English Title:||Geographic Concentration and Firm Survival|
|Keywords:||Firm Survival, Agglomeration, Localization, and Knowledge Externalities|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity
|Depositing User:||Dakshina De Silva|
|Date Deposited:||30. Aug 2011 12:37|
|Last Modified:||12. Feb 2013 10:00|
Abramovsky, L., Harrison, R., and Simpson, H. (2007). `University Research and the Location of Business R & D', The Economic Journal, vol. 117, pp. C114--C141.
Acs, Z. J., Audretsch, D. B. and Feldman, M. P. (1997). `R&D Spillovers and Recipient Firm Size.' Review of Economics and Statistics, vol. 76, pp. 336--340.
Anselin, L., Varga, A. and Acs, Z. (1997). `Local Geographic Spillovers between University Research and High Technology Innovations.' Journal of Urban Economics, vol. 42, pp. 422--448.
Audretsch, D. B. (2002). `The Dynamic Role of Small Firms: Evidence from the U.S,' Small Business Economics, vol. 18(1-3), pp. 13--40.
Audretsch, D. B. (1991). `New-Firm Survival and the Technological Regime,' The Review of Economics and Statistics, vol. 60, pp. 441--450.
Audretsch, D. B. and Feldman, M. P. (1996). `R&D Spillovers and the Geography of Innovation and Production.' American Economic Review, vol 86, pp. 630--640.
Audretsch, D. B. and Mahmood, T. (1994). `The Rate of Hazard Confronting New Firms and Plants in U.S. Manufacturing', Review of Industrial Organization, vol. 9, pp. 41--56.
Audretsch, D. B. and Mahmood, T. (1995). `New Firm Survival: New Results Using a Hazard Function', The Review of Economics and Statistics, vol. 77, pp. 97--103.
Baldwin, J. R. andGorecki, P. K. (1991). `Firm Entry and Exit in the Canadian Manufacturing Sector, 1970-1982', The Canadian Journal of Economics, vol. 24, pp. 300--323.
Bradburd, R., and Caves, R. E. (1982) `A Closer Look at the Effect of Market Growth on Industries Profits', Journal of Economic Behavior and Organization, vol. 64, pp. 635--645.
Carlton, D. W. (1983). `The Location and Employment Choices of New Firms: An Econometric Model with Discrete and Continuous Endogenous Variables', The Review of Economics and Statistics, vol. 65(3), pp. 440--449.
Chapple, K., Markusen, A., Schrock, G., Yamamoto, D. and Yu, P. (2004). `Gauging Metropolitan High-Tech and "I-Tech" activity', Economic Development Quarterly, vol. 18, pp. 10--29.
Ciccone, A. and Hall, R. E. (1996). `Productivity and the Density of Economic Activity', The American Economic Review, vol. 86(1), pp. 54--70.
Combes, P. (2000). `Economic Structure and Local Growth: France, 1984-1993', Journal of Urban Economics, vol. 47, pp. 329--55.
De Silva, D. G., McComb, R. P., Moh, Y., Schiller, A. R. and Vargas, A. J. (2010). `The Effect of Migration on Wages: Evidence from a Natural Experiment', American Economic Review, vol. 100(2), pp. 321--26.
De Silva, D. G. and McComb, R. P. (2010). `Research Universities and Regional High-Tech Firm Start-ups and Exit', Economics Inquiry, doi:10.1111/j.1465-7295.2010.00353.x.
Dube, A., Suresh N., and Reich, M. (2007). `The Economic Effects of a Citywide Minimum Wage', Industrial and Labor Relations Review, vol. 60(4), pp. 522--543.
Dube, A., Lester, T. W., and Reich, M. (2010). `Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties', The Review of Economics and Statistics, vol. 92(4), pp. 945--964.
Dunne, T., Klimek, S. D. and Roberts, M. J. (2005). `Exit from regional manufacturing markets: The role of entrant experience', International Journal of Industrial Organization, vol. 23, pp. 399--421.
Dunne, T., Roberts, M. J. and Samuelson, L. (1988) `Patterns of Firm Entry and Exit in U.S. Manufacturing Industries', The Rand Journal of Economics, vol. 19, pp. 495--515.
Dunne, T., Roberts, M. J. and Samuelson, L. (1989). `The Growth and Failure of U.S. Manufacturing Plants', The Quarterly Journal of Economics, vol. 104, pp. 671--698.
Duranton, G., and Overman, H G. (2005). `Testing for localization Using Micro-Geographic Data', Review of Economic Studies, vol. 72, pp. 1077--1106.
Fafchamps, M. (2004). "Manufacturing Growth and Agglomeration Effects." Working Paper, Oxford University.
Folta, T. B., Cooper, A. C. and Baik, Y. S. (2006). `Geographic Cluster Size and Firm Performance', Journal of Business Venturing, vol. 21, pp. 217--242.
Freeedman, M. L. (2008). `Job Hopping, Earnings Dynamics, and Industrial Agglomeration in the Software Publishing Industry', Journal of Urban Economics, vol. 64, pp. 590--600.
Glaeser, E. L., Kallal, H. K., Scheinkman, J. A. and
Shleifer, A. (1992). `Growth in Cities', Journal of Political Economy, vol. 100, pp. 1126--1152.
Griliches, Z. (1992). `The Search for R&D Spillovers', Scandinavian Journal of Economics, vol. 94(0), pp. S29--47.
Helfat, C., and Lieberman, M. B. (2002). `The birth of capabilities: market entry and the importance of pre-history', Industrial and Corporate Change, vol. 11(4), pp. 726--760.
Henderson, J. V. (2003). `Marshall's Scale Economies', Journal of Urban Economics, vol. 53, pp. 1--28.
Henderson, J. V., Kuncoro, A. and Turner, M. (1995). `Industrial Development in Cities', Journal of Political Economy, vol. 103(5), pp. 1067--90.
Jacobs, J. (1969). `Strategies for Helping Cities', The American Economic Review, vol. 59(4), pp. 652--656.
Jaffe, A. B. (1989). `Real Effects of Academic Research', American Economic Review, vol. 79, pp. 957--970.
Jaffe, A. B., Trajtenberg, M. and Henderson, R. (1993).`Geographic localization of Knowledge Spillovers as Evidenced by Patent Citations', The Quarterly Journal of Economics, vol. 108, pp. 577--598.
Krugman, P. (1991). `Increasing Returns and Economic Geography', Journal of Political Economy, vol. 99, pp. 483--499.
Mansfield, E. (1995). `Academic research underlying industrial innovations: sources, characteristics, and financing', Review of Economics and Statistics, vol. 77(1), pp. 55--65.
Marshall, A. (1920). Principles of Economics. 8th ed., Macmillan, London.
Romer, P. M. (1986). `Increasing Returns and Long-Run Growth.' Journal of Political Economy, vol. 94, pp. 1002--1037.
Rosenthal, S. S. and Strange, W. C. (2003). `Geography, Industrial Organization, and Agglomeration', Review of Economics and Statistics, vol. 85(2), pp. 377--393.
Saxenian, A. L. (1994). Regional Advantage: Culture and Competition in Silicon Valley and Route 128, Cambridge, MA: Harvard University Press.
Shaver, M. J., and Flyer, F. (2000). `Agglomeration Economies, Firm Heterogeneity, and Foreign Direct Investment in the United States', Strategic Management Journal, vol. 21, pp. 1175--1193.
Staber, U. (2001). `Spatial Proximity and Firm Survival in a Declining Industrial District: The Case of Knitwear Firms in Baden-Wurttemberg', Regional Studies. vol. 35, pp. 329--341.
Wallsten, S. J. (2001). `An Empirical Test of Geographic Knowledge Spillovers using Geographic Information Systems and Firm-size-level Data', Regional Science and Urban Economics, vol. 31(5), pp. 571--599.
Winter, S. G. (1984). `Schumpeterian Competition in Alternative Technological Regimes', Journal of Economic Behavior and Organization, vol. 5, pp. 287--320.
Woodward, D., Figuerido, O. and Guimarães, P. (2006). `Beyond the Silicon Valley: University R&D and high technology location', Journal of Urban Economics, vol. 60, pp. 15--32.