The Dynamics of Entry, Exit and Profitability: An Error Correction Approach for the Retail Industry
AbstractWe develop a two equation error correction model to investigate determinants of and dynamic interaction between changes in profits and number of firms in retailing. An explicit distinction is made between the effects of actual competition among incumbents, new firms competition, and potential competition from firms outside the market. Effects of cost, demand and general income changes on profitability are investigated to gain insight in the role of retailing in the cost, demand and wage inflationary process. The relative importance of profitability, growth and unemployment as determinants of net entry are studied. The model is tested using a panel data set of 36 Dutch shoptypes covering the 1977-1988 period. Copyright 1994 by Kluwer Academic Publishers
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Bibliographic InfoPaper provided by Erasmus University of Rotterdam - Institute for Economic Research in its series Papers with number 9308-g.
Length: 18 pages
Date of creation: 1993
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profit ; retail trade;
Other versions of this item:
- Carree, Martin & Thurik, Roy, 1994. " The Dynamics of Entry, Exit and Profitability: An Error Correction Approach for the Retail Industry," Small Business Economics, Springer, vol. 6(2), pages 107-16, April.
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- André van Stel & Roy Thurik & Dennis Fok & Andrew Burke, 2009. "The Dynamics of Entry and Exit," Scales Research Reports H200907, EIM Business and Policy Research.
- Carree, M. A. & Thurik, A. R., 1999. "The carrying capacity and entry and exit flows in retailing," International Journal of Industrial Organization, Elsevier, vol. 17(7), pages 985-1007, October.
- Dennis Fok & Andre van Stel & Andrew Burke & Roy Thurik, 2010. "Industry Dynamics and Entrepreneurship: An Equilibrium Model," Tinbergen Institute Discussion Papers 10-012/3, Tinbergen Institute, revised 08 Oct 2010.
- Burke, A.E. & van Stel, A.J. & Thurik, A.R., 2009. "Blue Ocean versus Competitive Strategy: Theory and Evidence," ERIM Report Series Research in Management ERS-2009-030-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- Koen de Backer, 2002. "Does foreign direct investment crowd out domestic entrepreneurship?," Economics Working Papers 618, Department of Economics and Business, Universitat Pompeu Fabra.
- 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.
- Koen De Backer & Leo Sleuwaegen, 2003. "Does Foreign Direct Investment Crowd Out Domestic Entrepreneurship?," Review of Industrial Organization, Springer, vol. 22(1), pages 67-84, February.
- Robert M. Feinberg, 2009. "Foreign Competition and Small-Firm Entry in US Manufacturing," Working Papers 2009-04, American University, Department of Economics.
- Martin Carree, 2002. "Does Unemployment Affect the Number of Establishments? A Regional Analysis for US States," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 389-398.
- André van Stel & Roy Thurik & Andrew Burke, 2008. "Investigating Blue Ocean v. Competitive Strategy: A Statistical Analysis of the Retail Industry," Scales Research Reports H200801, EIM Business and Policy Research.
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