Are Clusters Resilient? Evidence from Canadian Textile Industries

82 Pages Posted: 4 Aug 2017 Last revised: 12 Mar 2018

See all articles by Kristian Behrens

Kristian Behrens

University of Quebec at Montreal (UQAM) - Department of Economics

Brahim Boualam

University of Quebec at Montreal (UQAM)

Julien Martin

University of Quebec at Montreal (UQAM)

Date Written: July 2017

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: geo-coded data, Geographic clusters, Multifibre Arrangement, resilience, textile and clothing industries

JEL Classification: F14, R12

Suggested Citation

Behrens, Kristian and Boualam, Brahim and Martin, Julien, Are Clusters Resilient? Evidence from Canadian Textile Industries (July 2017). CEPR Discussion Paper No. DP12184, Available at SSRN: https://ssrn.com/abstract=3011422

Kristian Behrens (Contact Author)

University of Quebec at Montreal (UQAM) - Department of Economics ( email )

P.O. Box 8888, Downtown Station
Montreal, Quebec H3C 3P8
Canada

Brahim Boualam

University of Quebec at Montreal (UQAM) ( email )

PB 8888 Station DownTown
Succursale Centre Ville
Montreal, Quebec H3C3P8
Canada

Julien Martin

University of Quebec at Montreal (UQAM) ( email )

PB 8888 Station DownTown
Succursale Centre Ville
Montreal, Quebec H3C3P8
Canada

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
314
PlumX Metrics