[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/200908250700001142.html
   My bibliography  Save this paper

Firm entry, firm exit, and urban-biased growth

Author

Listed:
  • Yu, Li
  • Jolly, Robert W.
  • Orazem, Peter F.
Abstract
We introduce a taxonomy that classifies industries using three criteria: net growth in the number of firms; the interrelationship between firm entry and firm exit; and the degree of urban-bias in industry growth. We show that in 9 of 15 two-digit NAICS industries investigated, there is evidence of urban bias consistent with a comparative advantage to starting a business in urban markets. The urban advantage is due primarily to faster firm entry rates. Urban and rural firms have similar firm exit rates, consistent with a presumption that there are equal expected profit rates conditional on entry across markets. Urban areas grow faster because they induce faster firm entry and not because urban firms are more likely to succeed.

Suggested Citation

  • Yu, Li & Jolly, Robert W. & Orazem, Peter F., 2009. "Firm entry, firm exit, and urban-biased growth," ISU General Staff Papers 200908250700001142, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200908250700001142
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/84d26518-1659-4d68-9a51-8fb67d70b6d2/content
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genstf:200908250700001142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.