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The Interrelationships between Births and Deaths

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Author Info

  • Johnson, Peter
  • Parker, Simon

Abstract

This paper provides a preliminary study of the way in which the births and deaths of firms interact over time. It uses the retailing sector as a case study, although the results also have relevance for other sectors. Section I of the paper introduces the background to the paper. Section II provides a non mathematical theoretical framework for analyzing the births/deaths interrelationship. It identifies three separate types of effect operative in these interrelationships: the "competition", "multiplier" and Marshall ("life cycle") effects. The data used in this study (Value Added Tax registrations and deregistrations) and their limitations are considered in Section III. Section IV presents the preliminary empirical results. This section utilizes panel data vector autoregression techniques to identify the salient birth-death relationships. The final section concludes the paper and draws out possible policy conclusions. It also suggests avenues for further work. Copyright 1994 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 6 (1994)
Issue (Month): 4 (August)
Pages: 283-90

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Handle: RePEc:kap:sbusec:v:6:y:1994:i:4:p:283-90

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Web page: http://www.springerlink.com/link.asp?id=100338

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Cited by:
  1. Andrew Burke & Holger Görg & Aoife Hanley, 2008. "The impact of foreign direct investment on new firm survival in the UK: evidence for static versus dynamic industries," Small Business Economics, Springer, vol. 31(4), pages 395-407, December.
  2. Dejardin, Marcus, 2002. "Cross-sectoral effects of retailing firm demographies," ERSA conference papers ersa02p292, European Regional Science Association.
  3. repec:ebl:ecbull:v:12:y:2006:i:11:p:1-12 is not listed on IDEAS
  4. Koen De Backer & Leo Sleuwaegen, 2002. "Does foreign direct investment crowd out domestic entrepreneurship?," Vlerick Leuven Gent Management School Working Paper Series 2002-14, Vlerick Leuven Gent Management School.
  5. Manjon, M.C., 2004. "Firm Size and Short-Term Dynamics in Aggregate Entry and Exit," Discussion Paper 2004-2, Tilburg University, Center for Economic Research.
  6. repec:ebl:ecbull:v:12:y:2008:i:18:p:1-7 is not listed on IDEAS
  7. Ilmakunnas, Pekka & Topi, Jukka, 1996. "Microeconomic and Macroeconomic Influences on Entry and Exit of Firms," Research Discussion Papers 6/1996, Bank of Finland.
  8. Jong-Rong Chen & Ying-Tang Huang & Wen-Cheng Lu, 2008. "Dynamic Interrelation of Births and Deaths: Evidence from Plant Level Data," Economics Bulletin, AccessEcon, vol. 12(18), pages 1-7.
  9. Martin Andersson & Florian Noseleit, 2011. "Start-ups and employment dynamics within and across sectors," Small Business Economics, Springer, vol. 36(4), pages 461-483, May.
  10. Nyström, Kristina, 2005. "Interdependencies in the Dynamics of Firm Entry and Exit," Working Paper Series in Economics and Institutions of Innovation 28, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  11. Stamm, Isabell & Lubinski, Christina, 2011. "Crossroads of family business research and firm demography—A critical assessment of family business survival rates," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 117-127.
  12. Nico Dewaelheyns & Cynthia Hulle, 2008. "Legal reform and aggregate small and micro business bankruptcy rates: evidence from the 1997 Belgian bankruptcy code," Small Business Economics, Springer, vol. 31(4), pages 409-424, December.
  13. Ugur Soytas, 2006. "Long run relationship between entry and exit: time series evidence from Turkish manufacturing industry," Economics Bulletin, AccessEcon, vol. 12(11), pages 1-12.
  14. Koen de Backer, 2002. "Does foreign direct investment crowd out domestic entrepreneurship?," Economics Working Papers 618, Department of Economics and Business, Universitat Pompeu Fabra.
  15. Aki Kangasharju, 1998. "Regional variation in firm formation: Panel and cross-sectional data evidence from Finland," ERSA conference papers ersa98p134, European Regional Science Association.
  16. Tammy Rogers, 2012. "Bank market structure and entrepreneurship," Small Business Economics, Springer, vol. 39(4), pages 909-920, November.
  17. Martin Carree & Ingrid Verheul & Enrico Santarelli, 2011. "Sectoral patterns of firm exit in Italian provinces," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 499-517, August.
  18. repec:bls:wpaper:ec060110 is not listed on IDEAS
  19. Marcelo Resende & Eduardo P. Ribeiro & Rodrigo M. Zeidan, 2013. "Dynamic Entry and Exit Linkages in the Brazilian Manufacturing Industry: An Econometric Investigation," CESifo Working Paper Series 4209, CESifo Group Munich.

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