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The Exit of Pharmacia and Regional Growth

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  • Fridh, Ann-Charlotte

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    (The Ratio Institute)

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    Abstract

    In this paper we ask whether the withdrawal of a major employer (Pharmacia) from a region in Sweden (Uppsala) has had a negative effect on employment growth. We explore the possibility that the exit of Pharmacia may not have had a negative effect on the total employment in the region. It might be the case that new innovative resources with economic potential have been released due to the withdrawal leading to new firm formation and expansion of existing firms. We find no evidence that the withdrawal has led to a negative effect on employment growth in the region.

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    Bibliographic Info

    Paper provided by The Ratio Institute in its series Ratio Working Papers with number 22.

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    Length: 18 pages
    Date of creation: 29 Apr 2003
    Date of revision:
    Handle: RePEc:hhs:ratioi:0022

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    Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
    Phone: 08-441 59 00
    Fax: 08-441 59 29
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    Web page: http://www.ratio.se/
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    Keywords: exit; regional growths; start-ups; entry;

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    1. Acs, Zoltan J & Audretsch, David B, 1987. "Innovation, Market Structure, and Firm Size," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 567-74, November.
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    7. Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-90, September.
    8. Paul H. Malatesta & Kathryn L. DeWenter, 2001. "State-Owned and Privately Owned Firms: An Empirical Analysis of Profitability, Leverage, and Labor Intensity," American Economic Review, American Economic Association, vol. 91(1), pages 320-334, March.
    9. Heshmati, Almas, 2000. "On the Growth of Micro and Small Firms," Working Paper Series in Economics and Finance 396, Stockholm School of Economics.
    10. Boozer, Michael A., 1997. "Econometric Analysis of Panel Data Badi H. Baltagi Wiley, 1995," Econometric Theory, Cambridge University Press, vol. 13(05), pages 747-754, October.
    11. M Gray & E Parker, 1998. "Industrial change and regional development: the case of the US biotechnology and pharmaceutical industries," Environment and Planning A, Pion Ltd, London, vol. 30(10), pages 1757-1774, October.
    12. Dan Johansson, 2005. "The Turnover of Firms and Industry Growth," Small Business Economics, Springer, vol. 24(5), pages 487-495, 06.
    13. Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-74, August.
    14. Almus, Matthias & Nerlinger, Eric A, 1999. " Growth of New Technology-Based Firms: Which Factors Matter?," Small Business Economics, Springer, vol. 13(2), pages 141-54, September.
    15. Catherine Armington & Zoltan Acs, 2002. "The Determinants of Regional Variation in New Firm Formation," Regional Studies, Taylor & Francis Journals, vol. 36(1), pages 33-45.
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    1. Pharmacia in Wikipedia German ne '')
    2. Pharmacia in Wikipedia English ne '')

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