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Demand conditions clearly affect supply; weak demand can produce hysteresis and structural unemployment while strong demand can generate tight labour markets, which encourage firm investments in training and capital deepening.
It can also encourage firm interest and company advisors to implement better practices of growth (Levratto and Paranque 2011).
This finding indicates that strict environmental regulations can encourage firm entry and exit, thereby improving the composition of firms in the regulated industry.
Similar(57)
An overhaul would encourage firms to offer more permanent positions.
This should encourage firms to upgrade their capital equipment.
We are cutting corporation tax to encourage firms to invest.
"The government did come back and encourage firms like ours to continue to deal with SAC".
It would also encourage firms to list at home rather than abroad.
These new pressures will encourage firms to cut costs, shed labour and use assets more efficiently.
The rise of organised retailing will also encourage firms to formalise.
Higher prices encourage firms to raise production and households to increase their spending.
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