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Ratioinstitutet - The Ratio Institute Ratio Working Papers

No 22:
The Exit of Pharmacia and Regional Growth

Ann-Charlotte Fridh ()

Abstract: In this paper we ask whether the withdrawal of a major employer (Pharmacia) from a region in Sweden (Uppsala) has had a negative effect on employment growth. We explore the possibility that the exit of Pharmacia may not have had a negative effect on the total employment in the region. It might be the case that new innovative resources with economic potential have been released due to the withdrawal leading to new firm formation and expansion of existing firms. We find no evidence that the withdrawal has led to a negative effect on employment growth in the region.

Keywords: exit; regional growths; start-ups; entry; (follow links to similar papers)

JEL-Codes: L11; L25; L60; (follow links to similar papers)

18 pages, April 29, 2003

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