Formation of industrial sities in Bahía Blanca (1985-1994): characterisation of the main factors of attraction and displacement

Abstract

This paper provides a case study of the entry process in a particular regional environment. The main focus is on the role of the local economic structure and its evolution as important factors inducing and constraining individual decisions of new firm formation. The data relates to the case of an intermediate city of Argentina's main province (Bahía Blanca) which, contrasting with the evolution of the manufacturing sector at a national level, shown a positive rate of new firm formation between the last two economic census (1985/1994). In the second section, a survey of the most salient contributions and rationalizations of the entry process is accomplished. In the third section, the first step for the case study is made with a characterization of the main components of the regional environment that affects the level and quality of the rate of new firm formation. The fourth section analyses the evolution of the number of manufacturing firms between 1985 and 1994 and identifies the activities and establishment sizes where the entry process was more intensive. The main finding is the absence of positive pull effects and the predominant role of negative displacement effects.