From Russia with Love: The Impact of Relocated Firms on Incumbent Survival

Konferenzbeitrag

Identifying the impact of local firm concentration on individual firm performance is likely to produce a selection bias related to the positive effects of local concentration if agglomeration economies and natural advantages coincide. We overcome this problem by exploiting exogenous variation arising from a natural experiment. When Germany was divided after World War II, a great many firms fled the socialist East to prevent expropriation and located in random West German regions. Based on micro-level data for the population of firms in the machine tool industry from 1949–-2002, we identify the impact of relocated firms on incumbent firms' survival. We find a negative effect on incumbent survival, suggesting that the costs of increased competition dominate the potential benefits of agglomeration.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Agglomeration, Transport and Trade ; No. G3-V2

Klassifikation und Themen

• Klassifikation: Wirtschaft ; General Regional Economics (includes Regional Data) ; Market Structure, Firm Strategy, and Market Performance: General ; Business Taxes and Subsidies including sales and value-added (VAT)
• Thema: Agglomeration Economies ; Competition Effect ; Natural Experiment

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Heblich, Stephan ; Falck, Oliver ; Günther, Christina ; Kerr, William R.
• Ereignis: Veröffentlichung
• (wer): Verein für Socialpolitik
• (wo): Frankfurt a. M.
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/37506
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ