Intersectoral and spatial spill-overs of firms’ bankruptcy in Spain

Key Points

• Bankruptcy events among firms lead to significant spatial spill-overs affecting surrounding areas, creating wider economic impacts.
• In studying over several sectors, findings indicate that one firm's bankruptcy could influence financial stability in nearby firms.
• Observational analysis examines data on bankruptcy filings and economic indicators across various Spanish regions and sectors.
• These insights highlight the interconnected nature of firm failures, emphasizing the need for preventive economic policies to mitigate impacts.