Entry and exit of manufacturing plants over the business cycle

Yoonsoo Lee () and Toshihiko Mukoyama

European Economic Review, 2015, vol. 77, issue C, 20-27

Abstract: This paper analyzes the plant-level entry and exit over the business cycle. We document basic patterns of entry and exit of U.S. manufacturing plants between 1972 and 1997. We find that the entry rate is more cyclical than the exit rate. We also find that the differences in productivity and employment between booms and recessions are particularly larger for entering plants than for exiting plants. Our new finding suggests that the selection at the entry margin may be more important than the selection at the exit margin in understanding the plant-level dynamics over the business cycle.

Keywords: Plant-level dynamics; Entry and exit; Business cycles (search for similar items in EconPapers)
JEL-codes: E23 E32 L11 L60 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (113)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:77:y:2015:i:c:p:20-27

DOI: 10.1016/j.euroecorev.2015.03.011

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