Factors affecting the geographic concentration of food and drink industries using dynamic panel data

This article aims to examine the factors influencing the geographic concentration of food and drink industries using dynamic panel data for 28 provinces in the period from 2001 to 2012. Herfindahl-Hirschman concentration index to measure the concentration of firms is used. The results show positive and significant effect of primacy (with a coefficient 1/07) is the geographic concentration of food and beverage Which shows that these industries tend to settle near the first cities (largest city). However inverse relationship between economic distance variables (with a coefficient -0/067) and Food & Beverage industries that show economic distance is an obstacle for firms concentration. The variable share of the capital stock of the country (with a coefficient 146/0) had a significant positive effect on firms concentration. According to the results, using the policies to reduce economic distance between provinces is recommended.