Entry, Exit and Productivity: Empirical Results for German Manufacturing Industries

Joachim Wagner ()

No 2667, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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 unique newly available panel data sets for all manufacturing plants from Germany (1995-2002). Again, all three hypotheses are supported empirically.

Keywords: entry; exit; productivity (search for similar items in EconPapers)
JEL-codes: L11 L60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com, nep-eff, nep-ent, nep-ind and nep-tid
Date: 2007-03
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Related works:
Working Paper: Entry, Exit and Productivity Empirical Results for German Manufacturing Industries (2007)
Working Paper: Enty, Exit and Productivitry - Empirical Results for German Manufacturing Industries (2007)
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