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

Abstract

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.

Unemployment and new firm formation: evidence from Polish industries at the regional level

“…80%) were short-term unemployed (for a period not exceeding one year). Thus, it could be assumed that high long-term unemployment might mitigate "the push effect" (Calá, 2018).…”

“…Remarkably, in developing countries (e.g. Vietnam, South Africa, Argentina), the impact of unemployment rate on business entry has been found to be mostly insignificant (Santarelli & Tran, 2012;Naudé et al, 2008;Calá, 2018). For CEE countries, there is evidence both supporting the unemployment push hypothesis (Dvoulteý, 2017;Tyrowicz & Nestorowicz, 2010), as well as indicating the lack of any statistically significant relationship between start-up dynamics and unemployment (Hájek et al, 2015;Cichocki, 2012).…”

“…As regards territorial aspects, unemployment seems to affect more new business dynamics, where there are fewer incentives for entrepreneurial activities (Huggins et al, 2017). Structural problems of less developed economies may mitigate, however, the effect of unemployment rate (Calá, 2018). Moreover, this relationship may differ among countries, depending on their institutional framework and can develop differently in Central and Eastern European (CEE) countries, where the culture of entrepreneurial activities has a shorter history.…”

“…Those issues have attracted the interest of researchers relatively recently, with their analyses usually being focused on developed countries (Naudé et al, 2008;Calá, 2018). Furthermore, empirical findings still have not provided conclusive results regarding the presence of the unemployment push effect.…”

Yüksek ve Düşük Teknolojili Sektörlerde Piyasaya Girişin Belirleyicileri

“…Sanayi sektörüne yönelik olan çalışmaların da genel olarak imalat sanayii odaklı olduğu dikkat çekmektedir. Bu kapsamda öne çıkan çalışmalar ise, Orr (1974) Kanada, Austin ve Rosenbaum (1990) ve Rosenbaum (1993) ABD, Roh (2018) hem Kanada hem de ABD, Genchev (2015) Avustralya, Cala (2018) Arjantin için yapılmış piyasaya giriş analizlerine dayanmaktadır. ABD için 1970-1990 yılları arasında genel olarak piyasanın büyüme derecesi, karlılık, reklam harcamaları gibi piyasa özelindeki değişkenlerin; 2000'li yıllardan itibaren ise başta iktisadi büyüme ve işsizlik olmak üzere makro iktisadi değişkenlerin piyasaya giriş konusunda daha çekici etki yarattığı dikkat çekmektedir.…”