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Regional Issues on Firm Entry and Exit in Argentina: Core and Peripheral Regions REGIONAL ISSUES ON FIRM ENTRY AND EXIT IN ARGENTINA: CORE AND PERIPHERAL REGIONS. Carla Daniela Calá Dipòsit Legal: T 1655-2014 ADVERTIMENT. L'accés als continguts d'aquesta tesi doctoral i la seva utilització ha de respectar els drets de la persona autora. Pot ser utilitzada per a consulta o estudi personal, així com en activitats o materials d'investigació i docència en els termes establerts a l'art. 32 del Text Refós de la Llei de Propietat Intel·lectual (RDL 1/1996). Per altres utilitzacions es requereix l'autorització prèvia i expressa de la persona autora. En qualsevol cas, en la utilització dels seus continguts caldrà indicar de forma clara el nom i cognoms de la persona autora i el títol de la tesi doctoral. No s'autoritza la seva reproducció o altres formes d'explotació efectuades amb finalitats de lucre ni la seva comunicació pública des d'un lloc aliè al servei TDX. Tampoc s'autoritza la presentació del seu contingut en una finestra o marc aliè a TDX (framing). Aquesta reserva de drets afecta tant als continguts de la tesi com als seus resums i índexs. ADVERTENCIA. El acceso a los contenidos de esta tesis doctoral y su utilización debe respetar los derechos de la persona autora. Puede ser utilizada para consulta o estudio personal, así como en actividades o materiales de investigación y docencia en los términos establecidos en el art. 32 del Texto Refundido de la Ley de Propiedad Intelectual (RDL 1/1996). Para otros usos se requiere la autorización previa y expresa de la persona autora. En cualquier caso, en la utilización de sus contenidos se deberá indicar de forma clara el nombre y apellidos de la persona autora y el título de la tesis doctoral. No se autoriza su reproducción u otras formas de explotación efectuadas con fines lucrativos ni su comunicación pública desde un sitio ajeno al servicio TDR. Tampoco se autoriza la presentación de su contenido en una ventana o marco ajeno a TDR (framing). Esta reserva de derechos afecta tanto al contenido de la tesis como a sus resúmenes e índices. WARNING. Access to the contents of this doctoral thesis and its use must respect the rights of the author. It can be used for reference or private study, as well as research and learning activities or materials in the terms established by the 32nd article of the Spanish Consolidated Copyright Act (RDL 1/1996). Express and previous authorization of the author is required for any other uses. In any case, when using its content, full name of the author and title of the thesis must be clearly indicated. Reproduction or other forms of for profit use or public communication from outside TDX service is not allowed. Presentation of its content in a window or frame external to TDX (framing) is not authorized either. These rights affect both the content of the thesis and its abstracts and indexes. UNIVERSITAT ROVIRA I VIRGILI REGIONAL ISSUES ON FIRM ENTRY AND EXIT IN ARGENTINA: CORE AND PERIPHERAL REGIONS. Carla Daniela Calá Dipòsit Legal: T 1655-2014 Regional Issues on Firm Entry and Exit in Argentina: Core and Peripheral Regions PhD Dissertation Carla Daniela Calá Department of Economics Directors: PhD. Josep-Maria Arauzo-Carod PhD. Miguel Manjón Antolín Universitat Rovira i Virgili Reus 2014 UNIVERSITAT ROVIRA I VIRGILI REGIONAL ISSUES ON FIRM ENTRY AND EXIT IN ARGENTINA: CORE AND PERIPHERAL REGIONS. Carla Daniela Calá Dipòsit Legal: T 1655-2014 UNIVERSITAT ROVIRA I VIRGILI REGIONAL ISSUES ON FIRM ENTRY AND EXIT IN ARGENTINA: CORE AND PERIPHERAL REGIONS. Carla Daniela Calá Dipòsit Legal: T 1655-2014 Regional Issues on Firm Entry and Exit in Argentina: Core and Peripheral Regions Carla Daniela Calá Department of Economics Universitat Rovira i Virgili May 30, 2014 - 3 - UNIVERSITAT ROVIRA I VIRGILI REGIONAL ISSUES ON FIRM ENTRY AND EXIT IN ARGENTINA: CORE AND PERIPHERAL REGIONS. Carla Daniela Calá Dipòsit Legal: T 1655-2014 UNIVERSITAT ROVIRA I VIRGILI REGIONAL ISSUES ON FIRM ENTRY AND EXIT IN ARGENTINA: CORE AND PERIPHERAL REGIONS. Carla Daniela Calá Dipòsit Legal: T 1655-2014 Index Acknowledgments ........................................................................................................ 9 Chapter 1: Introduction ................................................................................................ 11 Chapter 2: Theoretical Framework And Empirical Evidence ......................................... 15 2.1. Presentation ...................................................................................................... 15 2.2. Measurements and approaches ........................................................................... 16 2.3. Firm dynamics: literature review and empirical evidence .................................... 17 2.3.1. Firm entry .................................................................................................. 17 2.3.2. Firm exit ..................................................................................................... 21 2.3.3. Independence, symmetry or simultaneity? .................................................... 22 2.4. The role of space on firm dynamics .................................................................... 24 2.4.1. Germanic location theory ............................................................................ 24 2.4.2. Models of cumulative causation ................................................................... 25 2.4.3. Local external economies ............................................................................ 25 2.4.4. New economic geography (NEG) ................................................................ 26 2.5. Empirical research on firm dynamics in developed countries ............................... 28 2.6. What do we know about firm dynamics and the role played by economic development? ........................................................................................................... 34 2.6.1. Industrial composition and firm characteristics ............................................. 35 2.6.2. Income levels and funding ........................................................................... 35 2.6.3. Knowledge and education ........................................................................... 36 2.6.4. Macroeconomic issues ................................................................................ 37 2.6.5. Informal sector ............................................................................................ 38 2.7. Empirical research about firm dynamics in developing countries ......................... 39 2.7.1. Determinants at the industry level ................................................................ 41 2.7.2. Determinants at the regional level ................................................................ 42 2.7.3. Determinants at the firm level ...................................................................... 44 2.7.4. Macroeconomic determinants ..................................................................... 45 2.8. Concluding Remarks ......................................................................................... 46 Chapter 3: Data ........................................................................................................... 47 3.1. Presentation ...................................................................................................... 47 3.2. Data Sources ..................................................................................................... 47 3.2.1 Database for the Study of Firm and Employment Dynamics .......................... 47 3.2.2. National Household Survey ......................................................................... 50 3.3. Explanatory Variables ........................................................................................ 53 Chapter 4: Argentina Over The Last 20 Years ............................................................... 57 4.1. Presentation ...................................................................................................... 57 4.2. Argentina and the regional dimension ................................................................ 57 4.3. Argentina Over the Last 20 Years....................................................................... 66 4.4. Concluding Remarks ......................................................................................... 71 Chapter 5: Regional Determinants Of Firm Entry In A Developing Country .................. 73 5.1. Introduction ...................................................................................................... 73 - 5 - UNIVERSITAT ROVIRA I VIRGILI REGIONAL ISSUES ON FIRM ENTRY AND EXIT IN ARGENTINA: CORE AND PERIPHERAL REGIONS. Carla Daniela Calá Dipòsit Legal: T 1655-2014 5.2. Regional determinants of entry: an overview ...................................................... 75 5.2.1. Evidence from developed countries .............................................................. 75 5.2.2. Evidence from developing countries ............................................................. 77 5.2.3. Empirical strategy ....................................................................................... 78 5.3. The data ............................................................................................................ 78 5.3.1. Entry .......................................................................................................... 78 5.3.2. Explanatory variables .................................................................................. 83 5.4. Econometric
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