Did Covid-19 modify the spatial concentration of business failure?

Abstract

The existing literature has examined the impact of the coronavirus disease (Covid-19) pandemic on business failure, highlighting firms' internal characteristics. However, information on changes in firms' external environments remains scarce. This study examines whether Covid-19 has also influenced the spatial co-locational patterns of business failure processes. Therefore, the authors apply symbolisation techniques to identify different business failure processes during pre-and post-covid periods. In addition, the authors compute the Q(m) spatial dependence test for categorical variables to identify differences in the co-location patterns before and after covid. The studie find significant differences in the spatial association of business failure processes, which are further understood when the authors examine sectoral differences.