Working PaperFirst publicationPublished version DOI: 10.48548/pubdata-1237

Entry, exit and productivity. Empirical results for German manufacturing industries

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Chronological data

Date of first publication2007-04-02
Date of publication in PubData 2024-08-23

Language of the resource

English

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Part of ISSN: 1860-5508
Working paper series in economics

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Abstract

Using panel data from Spain Farinas and Ruano (IJIO 2005) test three hypotheses from a model by Hopenhayn (Econometrica 1992): (H1) Firms that exit in year t were in t-1 less productive than firms that continue to produce in t. (H2) Firms that enter in year t are less productive than incumbent firms in year t. (H3) Surviving firms from an entry cohort were more productive than non-surviving firms from this cohort in the start year. Results for Spain support all three hypotheses. This paper replicates the study using a unique newly available panel data sets for all manufacturing plants from Germany (1995 – 2002). Again, all three hypotheses are supported empirically.

Keywords

Productivity; Produktivität

Number of the series contribution

44

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DDC

330 :: Wirtschaft

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Research