The determinants of exit in a developing country: core and peripheral regions

Calá, Carla Daniela; Arauzo‐Carod, Josep‐Maria; Manjón-Antolín, Miguel

doi:10.1007/s00168-015-0695-8

Cited by 9 publications

(18 citation statements)

References 63 publications

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“…Table 6 shows analogous results for firm exit. Once again, results for firm exit in low-tech activities (which account for 68% of total exits) are consistent with those found in previous studies focusing on aggregated exit (Calá, Arauzo-Carod and Manjón-Antolín, 2015). In particular, previous entrants in the sector generate a replacement effect in peripheral regions but prevent exit in the core.…”

Section: Resultssupporting

confidence: 89%

“…Lastly, the informal economy has much the same impact on low-tech exit as it does on the whole manufacturing as a whole (Calá, Arauzo-Carod and Manjón-Antolín, 2015). Although a small informal economy prevents exit, its effect is the opposite when it grows beyond a certain level.…”

Section: Resultsmentioning

confidence: 98%

“…The estimates from the count models are shown in tables 5 (entry) and 6 (exit). Columns [1] present results from the specification that contains variables which are widely used in studies on developed countries, while columns [2] include variables that capture the specificities of developing countries (poverty, the size of the informal sector and idle capacity), as well as the core-periphery pattern found in Argentina Manjón-Antolín, 2015 andArauzo-Carod, 2016). Upon analysis of the findings for firm entry (table 5, columns [2]), it becomes apparent that results for low-tech activities, which account for approximately 65% of total entries over the period under consideration, are largely consistent with those found in previous studies on the manufacturing sector as a whole (Calá, Manjón-Antolín and Arauzo-Carod, 2016).…”

Section: Resultsmentioning

confidence: 99%

“…As a result, positive agglomeration effects are expected to arise only in central areas. Previous studies on aggregated entry and exit in Argentina have found that the spatial distribution of aggregated entries and exits exhibit a core-periphery pattern Manjón-Antolín, 2015 and2016).…”

Section: Developing Countriesmentioning

confidence: 90%

“…Remarkably, studies on the regional and sectoral determinants of firm entry and exit are limited to developed countries, while much less research has focused on developing countries even though these countries are expected to become key players in the world economy, since it is widely assumed that they will noticeably increase their share of output over the next decades (Wilson and Purushothaman, 2006). More precisely, studies on developing countries either focus on industry (Lay, 2003;Wang, 2006;Günalp and Cilasun, 2006;Ozturk and Kilic, 2012) or on regional determinants (Naudé and others, 2008;Santarelli and Tran, 2012;Manjón-Antolín, 2015 and2016). Thus, this would appear to be the first attempt to quantify regional determinants of firm entry and exit in different manufacturing industries of a developing country.…”

Section: Introductionmentioning

confidence: 99%

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Sectoral and regional determinants of firm dynamics in developing countries: Evidence for low-, medium- and high-tech manufacturing in Argentina

Calá¹

2018

CEPAL Review

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This study analyses the determinants of firm dynamics in developing countries, using Argentina as an illustrative case. It explains firm entry and exit at the regional level, distinguishing three groups of manufacturing activities: low-, medium-and high-tech. The study finds that both region-and sector-specific determinants explain firm dynamics, but the impact is not homogeneous across sectors. In particular, for low-tech industries, there is a need for explanatory variables as a proxy for the specificities of developing economies (poverty, informal economy and idle capacity). There is also evidence of a core-periphery pattern according to which agglomeration economies and previous entries/exits have different effects in core and peripheral regions. These results are relevant for policymakers in developing countries, who should take into account not only the specificities of such economies, but also the regional heterogeneity both in terms of the level of development and industrial composition within the country.

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Section: Resultssupporting

confidence: 89%

Section: Resultsmentioning

confidence: 98%

Section: Resultsmentioning

confidence: 99%

Section: Developing Countriesmentioning

confidence: 90%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Sectoral and regional determinants of firm dynamics in developing countries: Evidence for low-, medium- and high-tech manufacturing in Argentina

Calá¹

2018

CEPAL Review

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Spatial drivers of firm entry in Iran

2020

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All rights reserved. No part of this publication may be reproduced in any form or by any electronic or mechanical means, including information storage and retrieval systems, without permission in writing from the publisher. The findings, interpretations and conclusions expressed in this publication are entirely those of the author(s) and should not be attributed to the Economic Research Forum, members of its Board of Trustees, or its donors.

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Does Corruption Discourage Entrepreneurship?

Park¹,

Shin

2022

Asian Economic Papers

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Although entrepreneurship plays a key role in economic development, its precise effect remains largely unknown. This is because it is challenging to objectively measure entrepreneurship and identify its determinants. In this paper, we analyze the effect of a particular feature of the institutional landscape, namely, corruption, on entrepreneurship. It is expected that corruption discourages entrepreneurship because it undermines fair competition. We use two proxies for entrepreneurship that are widely used in the literature: (1) nascent entrepreneurship collected from Global Entrepreneurship Monitor, and (2) entry rate defined as the number of new firms divided by the total number of previous year's registered businesses, collected from World Bank Group Entrepreneurship Survey. We find that better control of corruption promotes entrepreneurship. Our evidence is stronger when we use entry rate as a proxy of entrepreneurship. Our findings are preserved when we add other determinants of entrepreneurship drawn from the literature. When we use legal origins as instruments for corruption, our results remain essentially the same. The size of population, a proxy for market size, is positively associated with entrepreneurship while corporate taxes are negatively associated.

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The determinants of exit in a developing country: core and peripheral regions

Abstract: Abstract

Cited by 9 publications

References 63 publications

Sectoral and regional determinants of firm dynamics in developing countries: Evidence for low-, medium- and high-tech manufacturing in Argentina

Sectoral and regional determinants of firm dynamics in developing countries: Evidence for low-, medium- and high-tech manufacturing in Argentina

Spatial drivers of firm entry in Iran

Does Corruption Discourage Entrepreneurship?

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