Regional and sector-specific determinants of industry dynamics and the displacement effect

J. M. Arauzo, M. Manjón, M. Martín and A. Segarra

No 219, Studies on the Spanish Economy from FEDEA

Abstract: In this paper we analyze the regional and sector-specific determinants of industry dynamics. Concretely, we empirically tested three hypotheses (originally proposed by Shapiro and Khemani 1987) for the relationship between the entry and exit of firms in Spanish regions and sectors. The simplest one claims that entries and exits are independent. The symmetry and simultaneity hypotheses, on the other hand, take the opposite view. The symmetry hypothesis claims that barriers to entry are also barriers to exit, while the simultaneity hypothesis claims that there is a close relationship between entry and exit. Our estimates from a panel data system of equations seem to confirm the simultaneity hypothesis for Spain during the period 1980 to 1994.

New Economics Papers: this item is included in nep-com, nep-ent and nep-geo
References: Add references at CitEc
Citations:

Downloads: (external link)
https://documentos.fedea.net/pubs/eee/eee219.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fda:fdaeee:219

Access Statistics for this paper

More papers in Studies on the Spanish Economy from FEDEA
Bibliographic data for series maintained by Carmen Arias ().