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

Joachim Wagner

No 2667, IZA Discussion Papers from IZA Network @ LISER

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; productivity; exit (search for similar items in EconPapers)
JEL-codes: L11 L60 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2007-03
New Economics Papers: this item is included in nep-bec, nep-com, nep-eff, nep-ent, nep-ind and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published - published in: German Economic Review 2010, 11(1), 78-85

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https://docs.iza.org/dp2667.pdf (application/pdf)

Related works:
Journal Article: Entry, Exit and Productivity: Empirical Results for German Manufacturing Industries (2010)
Journal Article: Entry, Exit and Productivity: Empirical Results for German Manufacturing Industries (2010)
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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