Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/10942
Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: From Russia with love: the impact of relocated firms on incumbent survival
Authors: Falck, Oliver
Guenther, Christina
Heblich, Stephan
Kerr, William R
Contact Email: stephan.heblich@stir.ac.uk
Keywords: Agglomeration
competition
firm dynamics
labor
Germany
Issue Date: May-2013
Publisher: Oxford University Press
Citation: Falck O, Guenther C, Heblich S & Kerr WR (2013) From Russia with love: the impact of relocated firms on incumbent survival, Journal of Economic Geography, 13 (3), pp. 419-449.
Abstract: We identify the impact of local firm concentration on incumbent performance in a historic setting that has quasi-experimental characteristics. When Germany was divided after World War II, many firms in the machine tool industry fled the Soviet-occupied zone to prevent expropriation. We show that the regional location decisions of these firms upon moving to western Germany were driven by non-economic factors and heuristics rather than existing industrial conditions. Relocating firms increased the likelihood of incumbent failure in destination regions, a pattern that differs sharply from new entrants. We further provide evidence that these effects are due to increased competition for local resources.
Type: Journal Article
URI: http://hdl.handle.net/1893/10942
DOI Link: http://dx.doi.org/10.1093/jeg/lbs035
Rights: The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.
Affiliation: Ifo Institute for Economic Research, Germany
Max Planck Institute of Economics
Economics
Harvard University

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