The Birth, Death, and Persistence of Firms: Creative Destruction and the Spatial Distribution of U.S. Manufacturing Establishments, 2000–2006

Jason Brown, Dayton Lambert and Raymond Florax

Economic Geography, 2013, vol. 89, issue 3, 203-226

Abstract: This article deals with the dynamics of the U.S. manufacturing sector, analyzing the birth, death, and ongoing existence of firms in the beginning of the twenty-first century. Schumpeter’s notion of creative destruction is hypothesized to explain the spatiotemporal dynamics of the distribution of manufacturing establishments. We implemented a partial adjustment model that accounts for spillover effects between counties, unknown forms of heteroskedasticity, and spatial autocorrelation. The steady-state equilibrium birth and death rates converged to 6.8 percent and 6.1 percent per year, respectively, during the 2000–06 period. We found that firm birth and death were not decisively affected by a creative destruction process during that period, but firm birth and death positively affect the survival (or persistence) rate of single-unit manufacturing firms.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1111/ecge.12014 (text/html)
Access to full text is restricted to subscribers.

Related works:
Journal Article: The Birth, Death, and Persistence of Firms: Creative Destruction and the Spatial Distribution of U.S. Manufacturing Establishments, 2000–2006 (2013)
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:taf:recgxx:v:89:y:2013:i:3:p:203-226

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/recg20

DOI: 10.1111/ecge.12014

Access Statistics for this article

Economic Geography is currently edited by James Murphy

More articles in Economic Geography from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().