From Russia with Love: The Impact of Relocated Firms on Incumbent Survival

Oliver Falck, Christina Guenther, Stephan Heblich and William Kerr

No 16141, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: J2 L1 O1 R1 (search for similar items in EconPapers)
Date: 2010-06
Note: LS PR
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as Oliver Falck & Christina Guenther & Stephan Heblich & William R. Kerr, 2013. "From Russia with love: the impact of relocated firms on incumbent survival," Journal of Economic Geography, Oxford University Press, vol. 13(3), pages 419-449, May.

Downloads: (external link)
http://www.nber.org/papers/w16141.pdf (application/pdf)

Related works:
Journal Article: From Russia with love: the impact of relocated firms on incumbent survival (2013)
Working Paper: From Russia with love: The impact of relocated firms on incumbent survival (2013)
Working Paper: From Russia with Love: The Impact of Relocated Firms on Incumbent Survival (2011)
Working Paper: From Russia with love: the impact of relocated firms on incumbent survival (2011)
Working Paper: From Russia with Love: The Impact of Relocated Firms on Incumbent Surv ival (2011)
Working Paper: From Russia with Love: The Impact of Relocated Firms on Incumbent Survival (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:16141

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w16141

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).