Papers in Evolutionary Economic Geography

December 19, 2017

# 17.31 Labour mobility, skill-relatedness and plant survival over the industry life cycle: Evidence from new Dutch plants

Filed under: 2017 — Tags: , , , , — mattehartog @ 7:22 am

Ron Boschma, Riccardo Cappelli, Anet Weterings

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Labour mobility is often considered a crucial factor for regional development. However, labour mobility is not good per se for local firms. There is increasing evidence that labour recruited from skill-related industries has a positive effect on plant performance, in contrast to intra-industry labour recruits. However, little is known about which types of labour are recruited in different stages of the evolution of an industry, and whether that matters for plant performance. This paper attempts to fill these gaps in the literature using plant-level data for manufacturing and services industries in the Netherlands for the period 2001-2009. Our study focuses on the effects of different types of labour recruits on the survival of new plants. We show that the effects of labour recruits from the same industry and from skill-related and unrelated industries on plant survival vary between the life cycle stages of industries. We also find that inter-regional labour flows do not impact on plant survival.

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October 20, 2015

# 15.34 Causal Relations between Knowledge-Intensive Business Services and Regional Employment Growth

Filed under: 2015 — Tags: , , , , — mattehartog @ 5:58 pm

Thomas Brenner, Marco Capasso, Matthias Duschl, Koen Frenken, Tania Treibich

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This paper studies the causal relations between regional employment growth in Knowledge-Intensive Business Services (KIBS) and overall regional employment growth using German labour-market data for the period 1999-2012. Adopting a recently developed technique, we are able to estimate a structural vector autoregressive model in which the causal directions between KIBS and other sectors are examined including various time lags. One main finding holds that although regional growth has a negative short-term effect on KIBS, KIBS growth has a long-term positive effect on the whole regional economy. This result confirms the claim that KIBS can play a key role in regional policies. Distinguishing between financial and non-financial KIBS, we find that financial KIBS have a procyclical effect on regional growth underlining the potential de-stabilizing effect of a large financial sector.

July 15, 2015

# 15.22 Does Creative Destruction Work for Chinese Regions? An Empirical Study on the Articulation between Firm Exit and Entry

Filed under: 2015 — Tags: , , , , — mattehartog @ 3:08 pm

Yi Zhou, Canfei He & Shengjun Zhu

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Creative destruction is a key driving force behind industrial development. The continuing process of creative destruction provides an impetus to regional industrial renewal. Our analytical framework that emphasizes the ways in which firm exit creates a stimulus for firm entry, resulting in incremental innovation and productivity increase is complementary to the process of technological change and industrial renewal articulated by Schumpeter who pays attention to how new entrants bring in radical innovation and new products, making incumbents’ products and technologies obsolete and force them to exit or catch up. Using firm-level data of China’s industries during 1998-2008, this paper seeks to argue that the articulation between firm exit and entry has been constantly shaped by an assemblage of various factors, including firm characteristics, industrial linkages, regional institutions and geographical proximity.

September 26, 2013

# 13.15 Merger and acquisition activity as driver of spatial clustering: the spatial evolution of the Dutch banking industry, 1850-1993

Ron Boschma, Matté Hartog

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This paper investigates the extent to which merger and acquisition activity contributed to the spatial clustering of the Dutch banking industry in Amsterdam. This analysis is based on a unique database of all banks in the Netherlands that existed in the period 1850-1993. We found that spatial clustering of the Dutch banking industry was not driven by the fact that banks performed better in the Amsterdam region: being located in Amsterdam decreased rather than increased the survival chance of banks. However, banks in Amsterdam were disproportionally active in acquiring other banks outside Amsterdam. Experience in M&As accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chance of banks located there. Our findings suggest that M&A activity was a driving force behind the spatial clustering of the Dutch banking industry between 1850 and 1993.

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