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Jahrestagung des Vereins für Socialpolitik 2010 (Kiel): Ökonomie der Familie >
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http://hdl.handle.net/10419/37506
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| Title: | | From Russia with Love: The Impact of Relocated Firms on Incumbent Survival  |
| Authors: | | Heblich, Stephan Falck, Oliver Günther, Christina Kerr, William R. |
| Issue Date: | | 2010 |
| Series/Report no.: | | Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Agglomeration, Transport and Trade G3-V2 |
| Abstract: | | 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. |
| Subjects: | | Agglomeration Economies Competition Effect Natural Experiment |
| JEL: | | R10 L10 H25 |
| Document Type: | | Conference Paper |
| Appears in Collections: | | Jahrestagung des Vereins für Socialpolitik 2010 (Kiel): Ökonomie der Familie
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