Firm lifecycles and external restructuring

Arbeitspapier

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.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ETLA Discussion Papers ; No. 1253

Classification and Topics

• Classification: Wirtschaft ; Microeconomic Analyses of Economic Development ; Industrialization; Manufacturing and Service Industries; Choice of Technology ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
• Subject: Productivity ; decomposition ; lifecycle ; entry ; exit ; Produktivität ; Lebenszyklus ; Markteintritt ; Marktaustritt ; Dekompositionsverfahren ; Finnland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hyytinen, Ari ; Maliranta, Mika
• Event: Veröffentlichung
• (who): The Research Institute of the Finnish Economy (ETLA)
• (where): Helsinki
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/87779