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Journal of Evolutionary Economics

, Volume 21, Issue 3, pp 499–517 | Cite as

Sectoral patterns of firm exit in Italian provinces

  • Martin A. Carree
  • Ingrid Verheul
  • Enrico SantarelliEmail author
Regular Article

Abstract

There is considerable variation in the firm exit rate across the 103 provinces in Italy. This paper investigates a range of determinants of the exit rate for twelve different sectors in the Italian provinces for a period of eleven years. The analysis shows that the exit rate is positively affected by entry in the previous year (displacement) in the same sector. Previous exit has a different effect for the manufacturing industry as compared to the business services. More specifically, exit persists in manufacturing while in the business services it is rather exit in related sectors in the same province that leads to increased exit, probably due to the loss of clients or suppliers. The presence of industrial districts diminishes exit, especially in two manufacturing sectors (Food and Clothing), Commerce and Transport. Provinces with strong trademark activity appear to have lower exit rates.

Keywords

Firm exit Manufacturing Services Italian provinces 

JEL Classification

L60 L80 R12 R23 

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Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  • Martin A. Carree
    • 1
  • Ingrid Verheul
    • 2
  • Enrico Santarelli
    • 3
    Email author
  1. 1.UM School of Business and EconomicsMaastricht UniversityMaastrichtThe Netherlands
  2. 2.Rotterdam School of ManagementErasmus University RotterdamRotterdamThe Netherlands
  3. 3.Department of EconomicsUniversity of BolognaBolognaItaly

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