Spatial concentration of industries and new firm exits: Does this relationship differ between exits by closure and by M&A?

Anet Weterings, Orietta Marsili

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

Spatial concentration of industries and new firm exits: does this relationship differ between exits by closure and by M&A?, Regional Studies. This study shows that the effect of the spatial concentration of industries on the post-entry hazards of new firms differs by type of exit, and by industry. New firms located in regions with a higher relative concentration of firms in the same industry are less likely to exit by closing activities and more likely to exit by mergers and acquisitions (M&As). While localization economies that favour new firms' survival or a potentially successful exit through M&As are dominant in manufacturing, new firms in business services also experience increasing competition from new entrants that lowers the likelihood of survival and exit through M&As.
Original languageEnglish
Pages (from-to)44-58
Number of pages15
JournalRegional Studies
Volume49
Issue number1
Early online date24 Oct 2012
DOIs
Publication statusPublished - 2015

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Keywords

  • Geography
  • M&A
  • Exit

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