A Flow Approach to Industrial Sites, Firm Dynamics and Regional Employment Growth: A Case Study of Amsterdam‐North

Abstract

This paper analyses the relationship between spatial dynamics of firms and employment growth in the region. Moreover, it addresses the facilitating or impeding role of (new) industrial sites in the geographical process of firm and job dynamics, while recognising that the spatial dynamics of firms reflect socio‐economic developments at both the regional and national level. To this end, a novel conceptual theoretical framework based on the so‐called flow approach, is developed, through which the relationship between spatial dynamics of firms (entries, exits and relocations) and changes in regional employment (job creation and job destruction) can be systematically analysed. Moreover, it also allows us to assess the generative employment effects of firm moves from and to (newly created) industrial sites in the region. To demonstrate in practice the usefulness of this new approach for the regional employment effects of spatial firm dynamics (facilitated or hindered by industrial site developments) an empirical application to the area of Amsterdam‐North (the Netherlands) will be presented.