Cross-sectoral effects of retailing firm demographies
With regard to the interrelationship between firm births and deaths, Johnson & Parker (1994, 1996) have summarized the various causality relationships into three different effects: what they call the Multiplier, the Competition and the Marshall effects. In a recent paper, Dejardin (2001) has built on these earlier contributions and has suggested an enlarged analytical framework by introducing and discussing (inter)sectoral and spatial dimensions. Multiplier and Competition effects were reassessed according to the degree of sectoral disaggregation and to Hicks & Allen (1934) complementarity between economic activities. We suggested that the Competition (Multiplier) effect should overcome more probably the Multiplier (Competition) effect since analyses and empirical studies are focused on very disaggregated (aggregated) sectoral demographic events. Preliminary spatial econometric results obtained for Belgian retailing industries confirmed the relevance of an (inter)sectoral and spatial setting for research in the interrelationship between firm births and deaths. Estimates relate to 16 retailing industries and their aggregate. However, this previous research encounters various limitations. So, from a theoretical point of view, it appears that arguments already exposed could be more explicit, as we referred to general analytical framework such as Hicks & Allen notion of complementary goods or spatial oligopolistic models that were only very briefly discussed. From an empirical point of view, data were exploited through the estimations of an econometric model which specification may reveal heavy without meaning important gains in terms of econometric accuracy or explanatory efficiency. The aims of this new paper are mainly to respond to these limitations and to give a more emphatic treatment of cross-sectoral effects. Concerning this last and more specific purpose, we test different sectoral matchings (or aggregations) and interpret the new econometric results that are obtained through this more flexible and a priori less defined statistical treatment. References DEJARDIN, M. (2001), "Firm demography in a sectoral and spatial setting", paper presented at the Third Congress on Proximity 'New Growth and Territories', Paris, December 13-14. JOHNSON, P. & S. PARKER (1994), "The interrelationships between births and deaths", Small Business Economics, 6, 283-290. JOHNSON, P. & S. PARKER (1996), "Spatial variations in the determinants and effects of firm births and deaths", Regional Studies, 30, 7, 679-688. HICKS, J. & R. ALLEN (1934, "A reconsideration of the theory of value, parts I and II", Economica, N.S., February, pp. 52-76 and May, pp. 196-219.
|Date of creation:||Aug 2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kiminori Matsuyama, 1995.
"Complementarities and Cumulative Processes in Models of Monopolistic Competition,"
Journal of Economic Literature,
American Economic Association, vol. 33(2), pages 701-729, June.
- Kiminiori Matsuyama, 1994. "Complementaries and Cumulative Processes In Models of Monopolistic Competition," Discussion Papers 1106, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Marcus Dejardin, 2003. "Dynamiques entrepreneuriales," Urban/Regional 0302001, EconWPA, revised 05 Feb 2003.
- Leo van Wissen, 2000. "A micro-simulation model of firms: Applications of concepts of the demography of the firm," Papers in Regional Science, Springer, vol. 79(2), pages 111-134.
- 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.
- Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, June.
- Gianmarco I. P. Ottaviano & Diego Puga, 1998.
"Agglomeration in the Global Economy: A Survey of the 'New Economic Geography',"
The World Economy,
Wiley Blackwell, vol. 21(6), pages 707-731, 08.
- Ottaviano, Gianmarco & Puga, Diego, 1997. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," CEPR Discussion Papers 1699, C.E.P.R. Discussion Papers.
- Aki Kangasharju, 2000. "Regional variations in firm formation: Panel and cross-section data evidence from Finland," Papers in Regional Science, Springer, vol. 79(4), pages 355-373.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975.
"Monopolistic Competition and Optimum Product Diversity,"
The Warwick Economics Research Paper Series (TWERPS)
64, University of Warwick, Department of Economics.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
- Storey, David J & Jones, A M, 1987. "New Firm Formation--A Labour Market Approach to Industrial Entry," Scottish Journal of Political Economy, Scottish Economic Society, vol. 34(1), pages 37-51, February.
- Johnson, Peter & Parker, Simon, 1994. " The Interrelationships between Births and Deaths," Small Business Economics, Springer, vol. 6(4), pages 283-90, August.
- Peter Johnson & Simon Parker, 1996. "Spatial Variations in the Determinants and Effects of Firm Births and Deaths," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 679-688.
- Jouke van Dijk, 2008. "More Papers in Regional Science," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 1-2, 03.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa02p292. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.