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dc.titleResearch Insights: Why Doesn't Entry of Larger and More Productive Firms Drive Out the Many Small Firms in Developing Countries?
dc.contributor.authorTalamas Marcos, Miguel Ángel
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageMexico
dc.date.available2023-09-20T00:09:00
dc.date.issue2023-09-20T00:09:00
dc.description.abstractAn expansion from zero to the average number of chain stores in a Mexican neighborhood (6.7) reduces the number of neighborhood shops by 15%. This reduction is not driven by increased shop exits but by decreased shop entries. Shops retain their sales of fresh products and 96% of their customers, but customers visit shops less often and spend less on non-fresh and packed goods. Shops survive by exploiting comparative advantages stemming from being small and owner-operated, such as lower agency costs, building relationships with the community, having a broader and tailored product mix, and offering informal credit.
dc.format.extent4
dc.identifier.doihttp://dx.doi.org/10.18235/0005261
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Research-Insights-Why-Doesnt-Entry-of-Larger-and-More-Productive-Firms-Drive-Out-the-Many-Small-Firms-in-Developing-Countries.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Perspectivas-de-investigacion-por-que-la-entrada-de-empresas-mas-grandes-y-mas-productivas-no-expulsa-a-las-numerosas-pequenas-empresas-en-los-paises-en-vias-de-desarrollo.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectHigh-Productivity
dc.subjectBusiness Productivity
dc.subjectCompetitiveness
dc.subjectLabor
dc.subjectProductivity
dc.subjectBusiness Competitiveness
dc.subjectInformal Credit
dc.subjectInformal Firm
dc.subjectEmerging Market
dc.subjectSmall Business
dc.subjectLabor Force
dc.subjectProductivity Growth
dc.subjectCredit Access
dc.subjectComparative Advantage
dc.subject.jelcodeO10 - Economic Development: General
dc.subject.jelcodeD22 - Firm Behavior: Empirical Analysis
dc.subject.jelcodeD25 - Intertemporal Firm Choice: Investment, Capacity, and Financing
dc.subject.jelcodeD40 - Market Structure, Pricing, and Design: General
dc.typeCatalogs and Brochures
idb.identifier.pubnumberIDB-CB-00796
idb.operationRG-K1415
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