Firm entry and exit in Iowa, 1992 - 2004

dc.contributor.author Yu, Li
dc.contributor.author Orazem, Peter
dc.contributor.author Jolly, Robert
dc.contributor.author Orazem, Peter
dc.contributor.department Economics
dc.date 2018-02-17T18:16:08.000
dc.date.accessioned 2020-06-30T02:12:16Z
dc.date.available 2020-06-30T02:12:16Z
dc.date.issued 2008-11-01
dc.description.abstract <p>This paper uses the pattern of firm entry and exit to develop a classification system for industries. The classifications include urban-rural bias; long-term growth; and firm survival patterns. The first captures the fact that sector-specific economic growth may be favored in urban areas for some industries and may benefit from low population density for others. Some industries have experienced long-term expansion in firm numbers while others have experienced a decline. Finally, some industries are characterized by high rates of both entry and exit while others have low rates of both. A taxonomy classifying industries according to those three criteria is developed in this paper. The taxonomy is applied to the Iowa subset of the National Establishment Time-Series (NETS) database over the period from 1992 to 2004. County level entry and exit rates are shown to be positively correlated across nearly all 2 digit NAICS code industries. Industry growth is found to be biased against rural areas. Not all of the industries experienced expansion or have a positive net entry rate. Entry of new firms replaces old incumbent firms in each industry but to different degrees. Understanding firm entry - exit pattern can help design customized policies of fostering expansion of specific industries in Iowa according to their location bias, industry growth patterns and development dynamics.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_workingpapers/172/
dc.identifier.articleid 1171
dc.identifier.contextkey 8796579
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_workingpapers/172
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/22392
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_workingpapers/172/p3892_2008_12_05.pdf|||Fri Jan 14 21:18:27 UTC 2022
dc.subject.disciplines Economics
dc.subject.keywords taxonomy
dc.subject.keywords expansion
dc.subject.keywords churning
dc.subject.keywords entrepreneurship
dc.subject.keywords economic development
dc.subject.keywords entry-exit pattern
dc.subject.keywords location bias
dc.title Firm entry and exit in Iowa, 1992 - 2004
dc.type article
dc.type.genre working_paper
dspace.entity.type Publication
relation.isAuthorOfPublication c9a0d8cb-216b-42cb-a055-23a56438e364
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
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