Unlike many papers discussing the relationship between industry geographic concentration and performance, we focus on market and geographic concentration. Using three types of 1991 to 2001 census data, we find a negative correlation between market and geographic concentration. Through spatial correlation analysis, this paper also presents the externality effects of geographic concentration that increase the competition among neighborhood regions. Finally, we find that most firms choose to establish in a higher geographic concentration region by simultaneously considering the industry dynamic and time.
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