Economics - Book Chapters

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    Spatial effects in regional tourism firm births and deaths
    (Springer Nature Switzerland AG, 2020-12-17) Power, Bernadette; Doran, Justin; Ryan, Geraldine
    Agglomeration economies are benefits that firms obtain when they locate close to one another or are constrained spatially. Tourism is heavily reliant on agglomeration economies rather than mere resource endowments. Policy formation requires an understanding of how tourism agglomeration impacts entrepreneurship within regions. In this chapter, we focus on how agglomeration economies impact enterprise birth and death rates within the tourism sector in Ireland using a comprehensive dataset on tourism firm births and deaths. Agglomeration economies have been studied in the area of regional economic growth and prosperity, but less is known about the extent to which spatial agglomeration economies affect regional firm births and deaths in the tourism sector. Our results provide evidence of positive spatial dependence in regional tourism enterprise births and deaths. Co-location of a diverse set of complementary enterprises fosters greater tourism enterprise births. Greater local specialisation rather than diversity lowers regional tourism enterprise deaths.
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    The regional dimension of subsidies, innovation and job growth in european firms
    (RSA Research Network on Cohesion Policy, 2016-10) Crowley, Frank; Dotti, Nicola Francesco
    The analysis in this chapter reflects on subsidy provision across a sample of European countries from 2005 and assesses the impact of subsidies on the performance outcomes of recipient firms. A key objective of the paper is to explore the regional dimension to identify if firms in rural areas are more likely to receive subsidies and whether performance outcome disparities exist for firms in less urbanized locations. The results of the analysis indicate that subsidies are leading to improvements in firm innovation. The counterfactual analysis indicates that a world without subsidies would result in lower levels of innovation. Subsidized firms are located in less urbanized areas, are larger, foreign, offer training to employees, are better educated, are more high-tech and they export. Regional disparities are evident for subsidized firms that product innovate, however, they are absent for process innovation, pointing to product life cycle regional effects.
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