Firm Entry and Exit in Local Markets: 'Market Pull' or 'Unemployment Push' Effects, or Both? - HAL-SHS - Sciences de l'Homme et de la Société Access content directly
Journal Articles International Review of Entrepreneurship Year : 2020

Firm Entry and Exit in Local Markets: 'Market Pull' or 'Unemployment Push' Effects, or Both?

Abstract

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 may be thought of having high subsequent entry rates and possibly low exit rates. We examine this relationship and obtain empirical results for a range of 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'. We find a significant 'unemployment push' effect on entry in some industries, but also a significantly positive effect of unemployment on exit. This pattern possibly indicates a 'revolving door regime' in areas marked by unemployment where new entrants leave the market relatively soon after entry, or only crowd out local competitors without creating additional employment.
Fichier principal
Vignette du fichier
Article #1631 - Firm Entry and Exit in Local Markets ‘Market Pull’ or ‘Unemployment Push’ Effects, or Both .pdf (178.21 Ko) Télécharger le fichier
Origin : Publication funded by an institution

Dates and versions

halshs-03220690 , version 1 (10-05-2021)

Identifiers

  • HAL Id : halshs-03220690 , version 1

Cite

Martin Carree, Marcus Dejardin. Firm Entry and Exit in Local Markets: 'Market Pull' or 'Unemployment Push' Effects, or Both?. International Review of Entrepreneurship, 2020, 18 (3), pp.371-386. ⟨halshs-03220690⟩
108 View
435 Download

Share

Gmail Facebook X LinkedIn More