Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 497: Plants' Entry and Exit in Swedish Municipalities

Elisabet Berglund () and Kurt Brännäs ()
Additional contact information
Elisabet Berglund: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Kurt Brännäs: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

Abstract: Plants' entry and exit behaviour in Swedish municipalities are studied within a fixed-effect, integer-valued autoregressive model. Based on eight industrial sectors, 1985--1993, and all municipalities, models are estimated by a generalized method of moment estimator. Influences on entry and exit are systematic and spatially variable. Responses to explanatory variables differ between sectors. Average income, local unemployment and higher education are found to be important determinants of both entry and exit.

Keywords: Industrial sector; Integer-Valued Autoregression; Panel Data; GMM Estimation

JEL-codes: C32; C33; C35; L11; R12

29 pages, March 25, 1999

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