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Regional determinants of exit across firms' size: evidence from a developing country

Carla Calá (), Manjón-Antolín, Miguel and Josep-Maria Arauzo-Carod ()
Authors registered in the RePEc Author Service: Miguel Manjon Antolin ()

Nülan. Deposited Documents from Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación

Abstract: We analyse the determinants of exit in a developing country using Argentina as an illustrative case. We focus on regional determinants but estimate panel count data models for firms of different size, thus indirectly controlling for a major firm-level determinant. We find that most of the determinants used in previous studies analysing developed countries are also relevant here. The fit of the model improves, however, when variables that proxy for the specificities of developing economies are considered. We also find that while the exit of micro-small firms seem to be mostly driven by factors that are commonly found in developed countries, large firms are more influenced by factors that are typically not considered in developed countries' studies. These results raise doubts about the usefulness of public policies based on evidence from developed countries and show the importance of a differentiated analysis across firm size.

Keywords: Dinámica Empresarial; Cese de Actividad; Tamaño de la Empresa; Modelo de Panel; Argentina (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-ent, nep-geo and nep-sbm
Date: 2017-12
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Published in Tijdschrift voor Economische en Sociale Geografie, 108(6), 2017, pp. 768-785

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