Entry, Exit and Productivity Empirical Results for German Manufacturing Industries

Joachim Wagner ()

No 2007-064, Jena Economic Research Papers in Economics from Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek

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: 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: 2007-09-12
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Related works:
Working Paper: Enty, Exit and Productivitry - Empirical Results for German Manufacturing Industries (2007)
Working Paper: Entry, Exit and Productivity: Empirical Results for German Manufacturing Industries (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:jrp:jrpwrp:2007-064

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