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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 |
| Author(s): | 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 |
| Date Deposited: | 11-Feb-2013 |
| 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. https://doi.org/10.1093/jeg/lbs035 |
| 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. |
| DOI Link: | 10.1093/jeg/lbs035 |
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| File | Description | Size | Format | |
|---|---|---|---|---|
| Heblich_From Russia with Love_2013.pdf | Fulltext - Published Version | 467.2 kB | Adobe PDF | Under Embargo until 2999-12-19 Request a copy |
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