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http://hdl.handle.net/1893/3235| Appears in Collections: | Economics Working Papers |
| Peer Review Status: | Unrefereed |
| 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 |
| Citation: | Falck O, Guenther C, Heblich S & Kerr WR (2011) From Russia with Love: The Impact of Relocated Firms on Incumbent Survival. Stirling Economics Discussion Paper, 2011-17. |
| Keywords: | Agglomeration competition firm dynamics labor Germany Business relocation Germany (East) Economic geography Machine tool industry Germany (East) History Machine tool industry Germany (West) History |
| JEL Code(s): | R10: General Regional Economics (includes Regional Data) L10: Market Structure, Firm Strategy, and Market Performance: General H25: Business Taxes and Subsidies including sales and value-added (VAT) O10: Economic Development: General J20: Demand and Supply of Labor: General |
| Issue Date: | 1-Jul-2011 |
| Date Deposited: | 4-Aug-2011 |
| Series/Report no.: | Stirling Economics Discussion Paper, 2011-17 |
| Abstract: | We identify the impact of local firm concentration on incumbent performance with a quasi natural experiment. 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: | Working Paper |
| URI: | http://hdl.handle.net/1893/3235 |
| Affiliation: | Ifo Institute for Economic Research, Germany Max Planck Institute of Economics Economics Harvard University |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| SEDP-2011-17-Falck-Guenther-Heblich-Kerr.pdf | Fulltext - Accepted Version | 771.32 kB | Adobe PDF | View/Open |
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