The Significance of Entry and Exit for Regional Productivity Growth

Udo Brixy ()

Regional Studies, 2014, vol. 48, issue 6, 1051-1070

Abstract: Brixy U. The significance of entry and exit for regional productivity growth, Regional Studies. This study addresses the debate about whether start-ups increase regional productivity growth through such effects as the fostering of competition. A new longitudinal dataset at the establishment level for eastern and western Germany is used to analyse the impact of the number of start-ups and their survival on the growth of total factor productivity and employment. It is demonstrated that start-ups do affect regional productivity growth. But the impact is not proved continually: it varies between the manufacturing and the service sector and between the two parts of Germany.

Date: 2014
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DOI: 10.1080/00343404.2014.895804

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