Horizontal Clusters and Firm Resilience

Riccardo Marzano

Journal of Regional Science, 2025, vol. 65, issue 4, 965-983

Abstract: The paper examines the role that cluster‐specific horizontal relationships play in firm resilience following a negative shock. We use the Emilia earthquake that hit part of Emilia‐Romagna (Italy) in May 2012 to provide evidence of the negative effect of horizontal clustering on firm performance after a natural disaster. Moreover, empirical analyses show that firms within industrial districts are able to recover as soon as firms not belonging to industrial districts. The results are established controlling for a wide array of confounding factors, including local supply chain and infrastructure disruptions and alternative location‐specific factors.

Date: 2025
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