We carry out a firm-level empirical analysis to evaluate the economic impact of the sequence of earthquakes occurred in 2012 in the Italian region of Emilia-Romagna, and to address the question of whether the localization of a firm within an industrial district mitigated or exacerbated this impact. We estimate the effect of the earthquake on firms’ performance via two alternative methods: Difference-In-Differences and Propensity Score Matching in levels and first-differences. Our findings suggest that the earthquake reduced turnover, production, value added, and return on sales of the surviving firms, at least in the short-term. In addition, the debt over sales ratio grew significantly more in the firms located in the areas affected by the earthquake. The empirical evidence also suggests that the negative impact of the earthquake was slightly higher for the firms located in industrial districts, thereby suggesting that, at least in the short-term, the usually positive cumulative processes associated with localization within an agglomerated area could have reversed and magnified the negative impact of a disruptive exogenous supply shock

Cainelli, G., Fracasso, A., Vittucci Marzetti, G. (2018). Natural disasters and firm resilience in Italian industrial districts. In F. Belussi, J.L. Hervas-Oliver (a cura di), Agglomeration and Firm Performance (pp. 223-243). Springer International Publishing [10.1007/978-3-319-90575-4_13].

Natural disasters and firm resilience in Italian industrial districts

Vittucci Marzetti, G.
2018

Abstract

We carry out a firm-level empirical analysis to evaluate the economic impact of the sequence of earthquakes occurred in 2012 in the Italian region of Emilia-Romagna, and to address the question of whether the localization of a firm within an industrial district mitigated or exacerbated this impact. We estimate the effect of the earthquake on firms’ performance via two alternative methods: Difference-In-Differences and Propensity Score Matching in levels and first-differences. Our findings suggest that the earthquake reduced turnover, production, value added, and return on sales of the surviving firms, at least in the short-term. In addition, the debt over sales ratio grew significantly more in the firms located in the areas affected by the earthquake. The empirical evidence also suggests that the negative impact of the earthquake was slightly higher for the firms located in industrial districts, thereby suggesting that, at least in the short-term, the usually positive cumulative processes associated with localization within an agglomerated area could have reversed and magnified the negative impact of a disruptive exogenous supply shock
Capitolo o saggio
Agglomeration economies, Natural disaster, Resilience, Industrial districts
English
Agglomeration and Firm Performance
978-3-319-90574-7
Cainelli, G., Fracasso, A., Vittucci Marzetti, G. (2018). Natural disasters and firm resilience in Italian industrial districts. In F. Belussi, J.L. Hervas-Oliver (a cura di), Agglomeration and Firm Performance (pp. 223-243). Springer International Publishing [10.1007/978-3-319-90575-4_13].
Cainelli, G; Fracasso, A; Vittucci Marzetti, G
File in questo prodotto:
File Dimensione Formato  
Chap12_Cainelli.pdf

accesso aperto

Descrizione: Articolo principale
Dimensione 218.85 kB
Formato Adobe PDF
218.85 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/178109
Citazioni
  • Scopus 1
  • ???jsp.display-item.citation.isi??? 2
Social impact