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An Industry Disaggregated Analysis of the Determinants of Entry and Exit

PublicationArticle (with peer review)
Arbetsmarknad, Entry, Kristina Nyström

Abstract

Empirical research by, among others, Armington and Acs (Reg Stud 36:33–45, 2002) show that regional determinants of new firm formation differ between industries. This paper reinvestigates the regional determinants of entry and exit considering these findings using panel data methods at three different levels of aggregation. Agglomeration, in terms of localisation economies, is unequivocally found to be positive for regional new firm formation, but does not necessarily prevent firms from exiting. The results also show that industry structure is a more important explanatory variable for differences between entry and exit rates across regions than regional factors.

Nyström, K. (2007). ”An Industry Disaggregated Analysis of the Determinants of Entry and Exit”. The Annals of Regional Science, 41(4): 877-896.

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Working for an entrepreneur: heaven or hell?
Article (with peer review)Publication
Nyström, K.
Publication year

2021

Abstract

Recruiting employees to an entrepreneurial venture is a challenging task. From the employee’s perspective, accepting a position in an entrepreneurial venture potentially implies considerable uncertainty. This paper provide a literature review and identifies research gaps related to labor mobility of employees into and out of entrepreneurial firms. Who works for an entrepreneur? What are the conditions under which the employees of entrepreneurial firms work? Additionally, labor mobility after an employee works for an entrepreneurial firm is discussed. In conclusion, the quality of the jobs generated by entrepreneurial firms may be questionable (and still relatively unexplored in empirical research), but they are nevertheless important from a labor dynamic perspective. Better understanding about motives to work for an entrepreneur, issues related to job security beyond survival rates, and job quality may contribute to ease the recruitment problems that many entrepreneurial firms struggle with. Furthermore, the relevance and potential pros and cons of working for an entrepreneurial firm in future career paths (entrepreneur or employee) need to be carefully addressed in future research.

The Importance of Industry Structure in the Analysis of Regional Entry and Exit
Article (with peer review)Publication
Nyström, K.
Publication year

2009

Abstract

Previous empirical research has suggested that a large amount of the regional variation of new firm formation can be explained by differences in industrial structure. This paper studies the regional patterns of entry and exit in Sweden 1997-2001 considering these findings. It is shown that for the country as a whole, on average during these five years between 0.5 and 2.7 percent of the regional variation in entry and exit rates remain to be explained when regional industrial entry and exit rates are compared to the national average. However, there are substantial regional variations, which should be acknowledged by policy-makers.

The Institutions of Economic Freedom and Entrepreneurship
Article (with peer review)Publication
Nyström, K.
Publication year

2008

Published in
Abstract

This paper provides new evidence on the determinants of entrepreneurship across countries. The paper investigates the relationship between the institutional setting, in terms of economic freedom, and entrepreneurship, measured by self-employment, in a panel data setting covering 23 OECD countries for the period 1972–2002. The measure of economic freedom includes five aspects: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and the regulation of credit, labour and business. The empirical findings show that a smaller government sector, better legal structure and security of property rights, as well as less regulation of credit, labour and business tend to increase entrepreneurship.

Related content: Working Paper No. 114

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