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Sectoral and cross-sectoral effects of retailing firm demographies

Marcus Dejardin ()

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Abstract: Firm births and deaths are interrelated. Johnson andParker (1994) have summarized the various causalityrelationships according to three different effects: (1)the Multiplier, (2) the Competition and (3) the Marshalleffect. This article proposes an enlarged analyticalframework by introducing the sectoral and crosssectoral dimensions of firm demography. Theexpected interrelationships between firm births anddeaths are different when studied within a singleindustry, or between different industries. In the firstcase, Competition effects should prevail while, in thesecond case, Multiplier effects are more probable. Thediscussion suggests, however, that even for firms withsimilar activities, complementarities and Multipliereffects may occur. An econometric model that allowsfor (cross-)sectoral and spatial interactions isspecified and tested using Belgian data. Results leadto the conclusion that sectoral and cross-sectoraldimensions in firm demography are relevant. It isalso clear that these issues definitely deserve furtherattention in firm demographic research.

Keywords: Firm demography; Multiplier; Competition; Marshall effects; Market structures; Démographie de firmes; Effets multiplicateurs; de compétition; marshalliens; Structures de marché (search for similar items in EconPapers)
Date: 2004-06-01
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Published in Annals of Regional Science, Springer Verlag (Germany), 2004, 38 (2), pp.311-334

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