Strategic complementarities, geographical agglomeration, and firm investment

• Type: Article in International Scientific Journal
• Date: 2023-01-22

Authors

José Jorge (Author) FEP

Journal

Title: European Journal of Finance

Vol. 29 No. 2

Pages: 135-154

ISSN: 1351-847X

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 0 Citations

Scopus - 0 Citations

Other information

Authenticus ID: P-00W-38M

DOI: 10.1080/1351847x.2022.2030778

Abstract (EN): We estimate the effect of strategic complementarities (measured by the geographical agglomeration of firms) on firm investment. Individual firm investment responds significantly to industry investment in agglomerated industries, whereas the response is null in dispersed industries. Industry-region sales do not explain the differential effect between these two types of industries. These results have been overlooked in the literature, provide a justification for regional and industry policies, and challenge the stable unit treatment value assumption (SUTVA) required in potential outcome analysis.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 20