Competition Policy and Exit Rates: Evidence from Switzerland

Stefan Buehler, Christian Kaiser () and Franz Jaeger ()
Additional contact information
Christian Kaiser: University of St. Gallen
Franz Jaeger: University of St. Gallen

No 405, SOI - Working Papers from Socioeconomic Institute - University of Zurich

Abstract: This paper provides evidence on the relation between the intensity of product market competition and the probability of exit. We adopt a natural experiment approach towards analyzing the impact of a tightening of Swiss antitrust legislation on exit probabilities. Based on a sample of more than 68,000 firms from all major sectors of the Swiss economy, we find that the exit probability of nonexporting firms increased significantly, whereas the exit probability of exporting firms remained largely unaffected. Our results support the notion that there is a positive relationship between the intensity of product market competition and the probability of exit.

Keywords: competition intensity; exit; natural experiment (search for similar items in EconPapers)
JEL-codes: D43 L23 L40 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2004-03, Revised 2005-04
New Economics Papers: this item is included in nep-com, nep-ind, nep-mic and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in Contributions to Economic Analysis and Policy 4(1), 2005, Article 15

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https://www.econ.uzh.ch/apps/workingpapers/wp/wp0405.pdf Revised version, 2005 (application/pdf)

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Journal Article: Competition Policy and Exit Rates: Evidence from Switzerland (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:soz:wpaper:0405

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