TY - JOUR

T1 - Firm relocation in times of economic crisis

T2 - evidence from Greek small and medium enterprises’ movement to Bulgaria, 2007–2014

AU - Kapitsinis, Nikos

N1 - Funding Information: This work was supported by the University of Bristol [grant number GEOG.HF6175]. Publisher Copyright: © 2017 Informa UK Limited, trading as Taylor & Francis Group.

PY - 2017/4/3

Y1 - 2017/4/3

N2 - This paper examines firm relocation in the aftermath of the 2007 global economic crisis. In particular, the paper analyses the unprecedented recent increase in the movement of small and medium enterprises (SMEs) from Greece to Bulgaria using original insights by a survey of 103 Greek companies in Bulgaria. The findings suggest a reconsideration of the existing literature on firm mobility in order to explain the post-crisis movement of Greek SMEs. Entrepreneurs perceived firm relocation as a necessity, while, contrary to the existing literature, labour cost does not appear to have significantly influenced firm exit from Greece, the level of demand was highlighted as more important compared with the literature findings and access to external finance emerged as a major factor. Important among elements that attracted businesspeople to Bulgaria were low taxation and geographical proximity to Greece. The present analysis thus challenges the significance of firm relocation determinants in the literature.

AB - This paper examines firm relocation in the aftermath of the 2007 global economic crisis. In particular, the paper analyses the unprecedented recent increase in the movement of small and medium enterprises (SMEs) from Greece to Bulgaria using original insights by a survey of 103 Greek companies in Bulgaria. The findings suggest a reconsideration of the existing literature on firm mobility in order to explain the post-crisis movement of Greek SMEs. Entrepreneurs perceived firm relocation as a necessity, while, contrary to the existing literature, labour cost does not appear to have significantly influenced firm exit from Greece, the level of demand was highlighted as more important compared with the literature findings and access to external finance emerged as a major factor. Important among elements that attracted businesspeople to Bulgaria were low taxation and geographical proximity to Greece. The present analysis thus challenges the significance of firm relocation determinants in the literature.

KW - austerity

KW - Bulgaria

KW - economic crisis

KW - Firm relocation

KW - Greece

KW - small and medium enterprises

UR - http://www.scopus.com/inward/record.url?scp=85013379851&partnerID=8YFLogxK

U2 - 10.1080/09654313.2017.1288703

DO - 10.1080/09654313.2017.1288703

M3 - Journal article

AN - SCOPUS:85013379851

VL - 25

SP - 703

EP - 725

JO - European Planning Studies

JF - European Planning Studies

SN - 0965-4313

IS - 4

ER -