The Exit of Pharmacia and Regional Growth
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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