Firm Lifecycles and External Restructuring

Ari Hyytinen and Mika Maliranta

No 1253, Discussion Papers from The Research Institute of the Finnish Economy

Abstract: This paper studies how firms contribute to the productivity growth of an industry over their lifecycle. We present a decomposition method that allows us to condition the components of productivity growth on the age of production units. We find evidence for a prolonged positive exit effect that mirrors market selection during the early stages of firms lifecycle. This effect is tightly related to the negative initial productivity effect of entry. We also find some evidence that productivity-enhancing reallocation of resources between firms is concentrated on the middle aged firms.

Keywords: productivity; decomposition; lifecycle; entry; exit (search for similar items in EconPapers)
JEL-codes: O12 O14 O47 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2011
New Economics Papers: this item is included in nep-bec, nep-com, nep-eff and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.etla.fi/wp-content/uploads/2012/09/dp1253.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rif:dpaper:1253

Ordering information: This working paper can be ordered from
https://www.etla.fi/en/publications/dp1253-en/

The price is 10€.

Access Statistics for this paper

More papers in Discussion Papers from The Research Institute of the Finnish Economy Contact information at EDIRC.
Bibliographic data for series maintained by Kaija Hyvönen-Rajecki ().