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The Cyclical Dynamics of Industries in West Germany- Testing the Industry Life Cycle Hypothesis

Thomas Brenner and Matthias Dorner
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Matthias Dorner: Max-Planch-Institute for Innovation and Competition (MPI-IP), Innovation and Entrepreneurship Research Group, Marstallplatz 1, 80539 Munich, Germany; Institut for Employment Research (IAB), GradAB, Regensburger Strasse 100, 90478 Nuremberg,Germany

No 2015-05, Papers on Economics and Evolution from Philipps University Marburg, Department of Geography

Abstract: We test the industry life cycle hypothesis for 205 industries in West Germany between 1976 and 2009. In particular we analyse whether population indicators follow a cyclical path. Using a novel non-linear regression approach to identify life cycles we find that the number of establishments, employees, entries and exits follow in most industries a path that is well represented by at least a part of a cycle. Most industries that show cyclical behaviour run (partially) through their life cycle in the considered time period.

Keywords: Industry Life Cycle; cyclical development; establishment; employment; industry dynamics (search for similar items in EconPapers)
JEL-codes: C23 L16 O33 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2015-12-16
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