Where are craft breweries located? The role of agglomeration, tourism, and know-how

The objective of this article is to identify main drivers determining the geographical location of craft breweries in Slovakia. The main contribution of the article to the literature is to provide empirical evidence on the location determines of small firms as well as the focus on the Eastern Europe...

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Bibliographic Details
Published in:Economic research - Ekonomska istraživanja 2023-07, Vol.36 (2)
Main Authors: Pokrivčák, Ján, Ciaian, Pavel, Lančarič, Drahoslav, Michalička, Tomáš, Plevný, Miroslav
Format: Article
Language:English
Subjects:
agglomeration effect
Breweries
Craft breweries
Economic theory
Labor market
location choices
Panel data
Slovakia
Small business
Tourism
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Summary:The objective of this article is to identify main drivers determining the geographical location of craft breweries in Slovakia. The main contribution of the article to the literature is to provide empirical evidence on the location determines of small firms as well as the focus on the Eastern European country both of which are less explored in the literature. The article employs a conditional logit model on a regional panel data dataset of craft breweries and location attributes covering 79 counties in Slovakia for the period 1995-2019. The estimated results suggest that agglomeration economies are key determinants of location choices. However, the agglomeration of small breweries has notably strong effect, while the agglomeration of large breweries and past brewing experience are statistically insignificant in affecting location choices. Further, important drivers of craft breweries location choices are demand factors linked to tourist sector development. Other drivers, such as urban effects, life quality and labour market conditions, seem not to play role or have rather a weaker impact.
ISSN:1331-677X
1848-9664
DOI:10.1080/1331677X.2022.2139739