Spatial concentration of industries and new firm exits: does this relationship differ between exits by failure and by M&As?
This study shows that the effect of the spatial concentration of industries on the post-entry hazards of new firms differs between types of exit and industry. New firms located in regions with a higher relative concentration of firms in the same industry are less likely to exit through termination of their activities than through mergers and acquisitions (M&A).
New firms in manufacturing seem to benefit from localisation economies because these firms are more likely to survive or exit successfully through M&A if they are located in a region with a higher concentration of similar activities. New firms in business services, in contrast, experience increasing competition from new entrants, thus lowering the likelihood of survival or of exiting through M&A.
Authors
Specifications
- Publication title
- Spatial concentration of industries and new firm exits: does this relationship differ between exits by failure and by M&As?
- Publication date
- 8 June 2012
- Publication type
- Publication
- Magazine
- Regional Studies
- Product number
- 1052
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