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Market delimitation, firm survival and growth in service industries

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  • Ram�n Rufín
  • Cayetano Medina
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    Abstract

    This article focuses on the effect of both firm survival and market delimitation on stochastic growth behaviour in the realm of service industries. Two samples of firms were selected for the study, one of them representing the surviving firm population in the tourism industry and the other one representing the firm total. The activity of firms was used for measuring the influence of market delimitation. Stochastic growth behaviour is found to hold for the sector as a whole, whereas it does not do so for the population of surviving firms. Market delimitation is also observed to influence growth behaviour, but only when combined with firm survival.

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    File URL: http://hdl.handle.net/10.1080/02642060802621494
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal The Service Industries Journal.

    Volume (Year): 30 (2008)
    Issue (Month): 9 (September)
    Pages: 1401-1417

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    Handle: RePEc:taf:servic:v:30:y:2008:i:9:p:1401-1417

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    Web page: http://www.tandfonline.com/FSIJ20

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    Web: http://www.tandfonline.com/pricing/journal/FSIJ20

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    1. Reed, William J., 2001. "The Pareto, Zipf and other power laws," Economics Letters, Elsevier, vol. 74(1), pages 15-19, December.
    2. Orietta Marsili, 2005. "Technology and the Size Distribution of Firms: Evidence from Dutch Manufacturing," Review of Industrial Organization, Springer, vol. 27(4), pages 303-328, December.
    3. John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
    4. Ishikawa, Atushi, 2006. "Pareto index induced from the scale of companies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 363(2), pages 367-376.
    5. Toke Reichstein & Morten Berg Jensen, 2005. "Firm size and firm growth rate distributions--The case of Denmark," Industrial and Corporate Change, Oxford University Press, vol. 14(6), pages 1145-1166, December.
    6. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    7. Jamet, Stephanie, 2004. "Irreversibility, uncertainty and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 28(9), pages 1733-1756, July.
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