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The Annals of Regional Science

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30-11-2018 | Original Paper

Spatial patterns and determinants of firm exit: an empirical analysis on France

Authors: Giuseppe Arcuri, Marc Brunetto, Nadine Levratto

Published in: The Annals of Regional Science | Issue 1/2019

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Abstract

The purpose of this research is to study the role of spatial agglomeration economies as drivers of firm exit in France over the period 2009–2013 by focusing on two regional variables (local financial development and local specialization). The spatial autocorrelation detected in the data leads us to apply spatial econometric techniques (Spatial Dynamic Panel models and spatial GMM) that permit us to control the estimation of spatial spillover effects. Our results show that firm exit is significantly influenced by positive spatial autocorrelation. Therefore, locations with high exit rates tend to be surrounded by similar ones. However, this phenomenon differs according to the period. In addition, we find that greater local financial development reduces the exit rate in a department, whereas local specialization seems not to exert any effect.

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As expected, in this case, the Akaike Information Criteria (AIC) and Bayesian Information Criteria (BIC) support the application of the SAC model.

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Title: Spatial patterns and determinants of firm exit: an empirical analysis on France
Authors: Giuseppe Arcuri
Marc Brunetto
Nadine Levratto
Publication date: 30-11-2018
Publisher: Springer Berlin Heidelberg
Published in: The Annals of Regional Science / Issue 1/2019
Print ISSN: 0570-1864
Electronic ISSN: 1432-0592
DOI: https://doi.org/10.1007/s00168-018-0887-0

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