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On Entry and Growth: Theory and Evidence

Philippe Aghion and Evguenia Bessonova ()

Revue de l'OFCE, 2006, vol. 97 bis, issue 5, 259-278

Abstract: This paper analyzes the relationship between the entry of new firms and the innovation and productivity growth within existing firms. In particular, we argue that liberalizing entry has a boosting effect on innovation and growth in those existing enterprises that are the most productive prior to the liberalisation, whereas it discourages them in the least productive firms. This prediction is confronted to firm-level panel data from the UK, India and especially Russia over the period 1996-2002. JEL Classification: O11, O12, O30, O31, O32, O40.

Keywords: entry; growth; productivity; foreign investment (search for similar items in EconPapers)
JEL-codes: O11 O12 O30 O31 O32 O40 (search for similar items in EconPapers)
Date: 2006
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