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Regional determinants of firm entry in a developing country

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

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: We analyse the determinants of firm entry in developing countries using Argentina as an illustrative case. Our main finding is that although most of the regional determinants used in previous studies analysing developed countries are also relevant here, there is a need for additional explanatory variables that proxy for the specificities of developing economies (e.g., poverty, informal economy and idle capacity).We also find evidence of a core-periphery pattern in the spatial structure of entry that seems to be mostly driven by differences in agglomeration economies. Since regional policies aiming to attract new firms are largely based on evidence from developed countries, our results raise doubts about the usefulness of such policies when applied to developing economies. JEL classification: R12, R30, C33. Key words: Firm entry, Argentina, count data models.

Keywords: Empreses -- Creació; Argentina -- Condicions econòmiques; Economia regional; Localització industrial; Països en vies de desenvolupament; Anàlisi de dades de panel; Sèries temporals -- Anàlisi; 332 - Economia regional i territorial. Economia del sòl i de la vivenda (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-geo, nep-sbm and nep-ure
Date: 2014
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http://hdl.handle.net/2072/238220

Related works:
Journal Article: Regional determinants of firm entry in a developing country (2016) Downloads
Working Paper: Regional determinants of firm entry in a developing country (2016) Downloads
Working Paper: Regional determinants of firm entry in a developing country (2012) Downloads
Working Paper: Regional Determinants of Firm Entry in a Developing Country (2012) Downloads
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