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Sectoral and cross-sectoral effects of retailing firm demographies

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  • Marcus Dejardin

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Abstract

Firm births and deaths are interrelated. Johnson and Parker (1994) have summarized the various causality relationships according to three different effects: (1) the Multiplier, (2) the Competition and (3) the Marshall effect. This article proposes an enlarged analytical framework by introducing the sectoral and cross-sectoral dimensions of firm demography. The expected interrelationships between firm births and deaths are different when studied within a single industry, or between different industries. In the first case, Competition effects should prevail while, in the second case, Multiplier effects are more probable. The discussion suggests, however, that even for firms with similar activities, complementarities and Multiplier effects may occur. An econometric model that allows for (cross-)sectoral and spatial interactions is specified and tested using Belgian data. Results lead to the conclusion that sectoral and cross-sectoral dimensions in firm demography are relevant. It is also clear that these issues definitely deserve further attention in firm demographic research. Copyright Springer-Verlag 2004

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Bibliographic Info

Article provided by Springer in its journal The Annals of Regional Science.

Volume (Year): 38 (2004)
Issue (Month): 2 (06)
Pages: 311-334

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Handle: RePEc:spr:anresc:v:38:y:2004:i:2:p:311-334

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Cited by:
  1. Giulio Cainelli & Sandro Montresor & Giuseppi Vittucci Marzetti, 2013. "Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces," "Marco Fanno" Working Papers 0173, Dipartimento di Scienze Economiche "Marco Fanno".
  2. 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.
  3. 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.
  4. Kristina Nyström, 2007. "Interdependencies in the Dynamics of Firm Entry and Exit," Journal of Industry, Competition and Trade, Springer, vol. 7(2), pages 113-130, June.
  5. Marcus Dejardin, 2010. "La création d'entreprises et ses rapports au territoire," Post-Print halshs-00618267, HAL.
  6. 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.

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