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Sectoral and regional determinants of firm dynamics in developing countries: evidence for low-, mediumand high-tech manufacturing in Argentina

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  • Calá, Carla Daniela

Abstract

This study analyses the determinants of firm dynamics in developing countries, using Argentina as an illustrative case. It explains firm entry and exit at the regional level, distinguishing three groups of manufacturing activities: low-, medium- and high-tech. The study finds that both region- and sector- specific determinants explain firm dynamics, but the impact is not homogeneous across sectors. In particular, for low-tech industries, there is a need for explanatory variables as a proxy for the specificities of developing economies (poverty, informal economy and idle capacity). There is also evidence of a core-periphery pattern according to which agglomeration economies and previous entries/exits have different effects in core and peripheral regions. These results are relevant for policymakers in developing countries, who should take into account not only the specificities of such economies, but also the regional heterogeneity both in terms of the level of development and industrial composition within the country.

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  • Calá, Carla Daniela, 2018. "Sectoral and regional determinants of firm dynamics in developing countries: evidence for low-, mediumand high-tech manufacturing in Argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
  • Handle: RePEc:ecr:col070:43954
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    Keywords

    EMPRESAS INDUSTRIALES; EMPRESAS MANUFACTURERAS; PAISES EN DESARROLLO; ESTUDIOS DE CASOS; DESARROLLO DE EMPRESAS; DATOS ESTADISTICOS; MODELOS ECONOMETRICOS; INDUSTRIAL ENTERPRISES; MANUFACTURING ENTERPRISES; DEVELOPING COUNTRIES; CASE STUDIES; ENTERPRISE DEVELOPMENT; STATISTICAL DATA; ECONOMETRIC MODELS;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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