The aim of this paper is to propose an econometric application in order to detect the factors that affect the size and the performance of local clusters of small and medium firms (SMEs) such as industrial districts. Our purpose is to extend some basic issues of models in economic geography in order to account for further micro components that seem fostering the rise and performances of local clusters. We succeed in stating that, in addition to the home market effect and transport costs, firms belonging to industrial districts improve their competitiveness by exploiting some assets, such those involved by ad-hoc services, generated inside the district by the co-operation among firms. Moreover looking for fixed effects in the study of firms' competitiveness allows us to determine that sectorial differences do not affect substantially the behavior and performance of SMEs.
Small Business Economics – Springer Journals
Published: Oct 3, 2004
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