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Abstract

According to economic geography literature, the success of firms is affected by the local context, in particular when firms are socio-spatially embedded. We expect this effect to be stronger when firms face an increase in local disorder. We analysed data on 344 firms (active in retail, eating and drinking establishments, personal services and private education, business services, cultural activities, manufacturing and building) in 108 Dutch residential neighbourhoods, and data on the changes in social and physical disorder of those neighbourhoods, to examine firm success determinants. We find that it is not the degree of disorder that matters to local firms turnover, but rather recent changes in local disorder. More in particular, we find that local firm turnover is negatively affected by an increase in local disorder, but only when a firm depends on daily visits from predominantly local customers. Our results suggest that physical and social local interventions to create safe and clean public spaces will indirectly positively influence local firms and subsequently, the neighbourhood economy. This spill-over effect is promising for both residents, who benefit from local amenities and local ‘buzz’, and local entrepreneurs, whose firm success is stimulated.

Abstract

National Statistical Institutes (NSIs) strive to produce short-term business statistics (STS) indicators with the high quality estimates in a timely manner. NSIs are usually faced with the challenges, such as differences in definitions, incompleteness of administrative data, periodicity and timeliness, coverage issues, etc. Administrative Value Added Tax (VAT) turnover data can be used to partially or completely replace survey data for the estimation of short-term business turnover indicators. In this paper, main characteristics of administrative VAT turnover data in Bosnia and Herzegovina will be examined through cleaning of VAT turnover data and matching them with survey data. Hence, the main objective of this study is to investigate the relationship between VAT turnover data and survey data in in Bosnia and Herzegovina. The Monthly Retail Trade Turnover Indices (RTI) for in Bosnia and Herzegovina will be estimated by using administrative VAT turnover data. Spearman’s correlation coefficients are used to examine the presence of a linear relationship between VAT turnover data and survey data. Results gained by using survey and administrative VAT turnover data will be compared. Based on the results of the analysis, future challenges and perspectives for expansion of using administrative VAT turnover data will be identified.