Sectoral and cross-sectoral effects of retailing firm demographies

Abstract

Firm births and deaths are interrelated. Johnson and Parker (1994) have summarized the various causality relationships according to three different effects: (1) the Multiplier, (2) the Competition and (3) the Marshall effect. This article proposes an enlarged analytical framework by introducing the sectoral and cross-sectoral dimensions of firm demography. The expected interrelationships between firm births and deaths are different when studied within a single industry, or between different industries. In the first case, Competition effects should prevail while, in the second case, Multiplier effects are more probable. The discussion suggests, however, that even for firms with similar activities, complementarities and Multiplier effects may occur. An econometric model that allows for (cross-)sectoral and spatial interactions is specified and tested using Belgian data. Results lead to the conclusion that sectoral and cross-sectoral dimensions in firm demography are relevant. It is also clear that these issues definitely deserve further attention in firm demographic research. Copyright Springer-Verlag 2004

Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces

“…Lanzafame, 2010Lanzafame, , 2012. As we said, this "multiplier effect" has already been detected in empirical studies at the firm-industry level (Dejardin, 2004), and interpreted by considering the induced effects of the death of an important business partner along the industry supply chain. As we also said, the adoption of a local-industry perspective reinforces these effects, by filtering out the most important business partnerships in the territory.…”

“…Carree et al, 2011;Martin and Sunley, 2006), firm exit is generally affected by both its lagged values, and by the current and lagged values of start-up rates. As for the former, a "multiplier effect" is expected as the closing down of the actor of one industry (especially an important one) will presumably reverberate on other firms -connected (competitively and/or along the supply chain) to it in the same industry -the following periods (Dejardin, 2004). As for the latter, instead, new entries might either "displace" incumbent firms by making them less efficient, or generate exits among the entrants, given their short life-expectancy ("revolving door effect") (Audretsch, 1995).…”

Start-ups and employment dynamics within and across sectors

“…For instance, drawing on the framework of Johnson and Parker (1994), Dejardin (2004) analyzes the crosssector dimension of interrelationships between entry and exit in retailing. The basic hypothesis is that these interrelationships depend on whether one studies effects within a given sector or effects across sectors.…”

Challenges for spatially oriented entrepreneurship research

“…Several articles deal with determinants of start-up activities and its variations. This includes the location of a firm in a particular spatial vicinity (Stearns et al 1995), the industry environment (Dean and Meyer 1996;Dejardin 2004) or individual beliefs concerning self-employment (Kolvereid and Isaksen 2006). Other articles focus on regional variations in business creation and related effects, such as employment and employment growth (Audretsch and Fritsch 1994).…”