The dynamics of entry, exit and profitability: An error correction approach for the retail industry

摘要: We develop a two equation error correction model to investigate determinants of and dynamic interaction between changes in profits number firms retailing. An explicit distinction is made the effects actual competition among incumbants, new potential from outside market. Effects cost, demand general income on profitability are investigated gain insight role retailing wage inflationary processes. The relative importance profitability, growth unemployment as net entry studied. tested using panel data set 36 Dutch shoptypes covering 1977–1988 period.