Contido principal do artigo

Rolando Vaz
Research on Economics, Management and Information Technologies (REMIT), Department of Economics. Portucalense University, Rua Dr. António Bernardino de Almeida, 541, 4200-072 Porto, Portugal
Espanha
https://orcid.org/0000-0003-3218-3975
v. 33 n. 3 (2024), Articles, páginas 1-24
DOI: https://doi.org/10.15304/rge.33.3.8983
Recibido: 18-01-2023 Aceito: 15-11-2023 Publicado: 16-05-2024
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Resumo

This paper focuses on the relationship between the regional firm density and the growth of firms in the Portuguese textile and clothing industry to investigate how their geographic clustering influences said growth. Despite the concentration of this industry in the Northern region of Portugal in only four poles, our results show that the location of firms in the cluster is not relevant for growth when the whole industry is considered. However, disaggregate analysis shows that the clothing industry does exhibit both location externalities and cross-location effect, while textile manufacture exhibits neither. In addition, our empirical evidence reveals that the growth of firms located in the cluster is positively correlated with external finance. This result suggests that location becomes a solvency signal for firms, and, specifically, this might help to explain why textile manufacturers firms are located in the cluster. These findings are relevant for entrepreneurs and Portuguese policymakers, as it jeopardizes the optimal allocation of scarce resources in the Portuguese textile cluster.

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