Are clusters resilient? Evidence from Canadian textile industries

Julien Martin, Brahim Boualam and Kristian Behrens ()

No 12184, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We investigate whether plants inside and outside geographic clusters differ in their resilience to adverse economic shocks. To this end, we develop a bottom-up procedure to delimit clusters using Canadian geo-coded plant-level data. Focussing on the textile and clothing industries and exploiting the series of dramatic changes faced by that sector between 2001 and 2013, we find no evidence that plants in clusters are more resilient than plants outside clusters: they are neither less likely to die nor more likely to adapt by switching their main line of business. However, conditional on switching, plants in urbanized clusters are more likely to transition to services.

Keywords: Geographic clusters; Resilience; Textile and clothing industries; Multifibre arrangement; Geo-coded data (search for similar items in EconPapers)
JEL-codes: F14 R12 (search for similar items in EconPapers)
Date: 2017-07
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (3)

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Journal Article: Are clusters resilient? Evidence from Canadian textile industries (2020)
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