Abstract. We analyse the determinants of firm entry in developing countries using Argentina as an illustrative case. Our main finding is that although most of the regional determinants used in previous studies analysing developed countries are also relevant here, there is a need for additional explanatory variables that proxy for the specificities of developing economies (e.g., poverty, informal economy and idle capacity). We also find evidence of a core-periphery pattern in the spatial structure of entry that seems to be mostly driven by differences in agglomeration economies. Since regional policies aiming to attract new firms are largely based on evidence from developed countries, our results raise doubts about the usefulness of such policies when applied to developing economies.
JEL classification: R12, R30, C33
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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El estudio de la especialización productiva regional es clave para diseñar políticas de desarrollo territorial. Sin embargo, las medidas usualmente utilizadas no tienen en cuenta la interdependencia entre actividades y presentan otros problemas relacionados con el nivel de desagregación sectorial empleado. Para superar estas limitaciones, proponemos una nueva forma de definir la especialización regional a partir de técnicas de análisis multivariado, que son aplicadas a datos del total de empleo asalariado registrado en el sector privado de Argentina. Primero, conformamos un conjunto de perfiles sectoriales de coaglomeración territorial y, a partir de ellos, definimos una tipología empírica de Áreas Económicas Locales en función de sus patrones productivos. Los resultados muestran que la metodología propuesta ayuda a capturar interdependencias entre actividades, distinguir dentro de una categoría especializaciones cualitativamente diferentes y dar cuenta tanto del tipo de especialización como del grado de diversidad productiva regional.
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