Firm Entry and Exit in Local Markets: Market Pull and Unemployment Push
Marcus Dejardin () and
No 1114, Working Papers from University of Namur, Department of Economics
Firm entry and exit flows in the retailing and consumer services may be viewed as market equilibrating processes. Local markets with considerable market room and high unemployment ought to be characterized by high subsequent entry rates and low exit rates. However, lack of entrepreneurial alertness may inhibit this. We examine the relationship and obtain empirical results for a range of selected industries in 563 Belgian municipalities. We show that, over a three-year period, (net) entry is positively affected by the presence of local 'market room' and also by future market pull. We find 'unemployment push' effect on entry in easy-to-enter industries, but also a significant effect of unemployment on exit.
Keywords: Entrepreneurship; Entry; Exit; Entrepreneurship; Unemployment (search for similar items in EconPapers)
JEL-codes: L80 M13 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-ent, nep-ind, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www.fundp.ac.be/eco/economie/recherche/wpseries/wp/1114.pdf First version, 2011 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nam:wpaper:1114
Access Statistics for this paper
More papers in Working Papers from University of Namur, Department of Economics Contact information at EDIRC.
Series data maintained by Marie-Helene Mathieu ().