Entry, exit and productivity empirical results for German manufacturing industries

Arbeitspapier

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 a unique newly available panel data sets for all manufacturing plants from Germany (1995 – 2002). Again, all three hypotheses are supported empirically.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Jena Economic Research Papers ; No. 2007,064

Classification and Topics

• Classification: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Industry Studies: Manufacturing: General
• Subject: entry ; exit ; productivity ; Verarbeitendes Gewerbe ; Produktivität ; Unternehmensentwicklung ; Markteintritt ; Marktaustritt ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wagner, Joachim
• Event: Veröffentlichung
• (who): Friedrich Schiller University Jena and Max Planck Institute of Economics
• (where): Jena
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/25622
• Last update: 10.03.2025, 11:43 AM CET