Of Farmers And Butchers - Comparing The Determinants Of Exit In Shrinking Sectors
Farmers and butchers in Switzerland both operate in shrinking sectors. The number of businesses and the sectoral turnover has decreased by about 40 per cent over the last twenty years for both sectors. It is, however, an interesting question whether the determinants of exit are the same for the primary sector and the secondary and tertiary sector. A regression analysis reveals that, for farmers, a larger part of exits can be traced back to economic factors if compared to butchers. For butchers, the profit of the business is the key determinant of structural change, whereas for farms, the level of prices is an important signal factor. Interest rates influence structural change for both sectors. The study points to the importance of sector-specific research.
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