Entry, exit and productivity growthSpanish manufacturing during the eighties

  1. Jaumandreu Balanzo, Jordi
  2. Martín Marcos, Ana
Journal:
Spanish economic review

ISSN: 1435-5469

Year of publication: 2004

Volume: 6

Issue: 3

Pages: 211-226

Type: Article

DOI: 10.1007/S10108-004-0079-1 DIALNET GOOGLE SCHOLAR

More publications in: Spanish economic review

Sustainable development goals

Abstract

This paper analyses the role played by both competitive pressure (increasing imports) and the restructuring of industries through entry and exit in productivity growth of Spanish manufacturing during the eighties, the key period of its accession to the EEC economy. A GMM panel estimation of the determinants of corrected Solow residual for 75 manufacturing during 1979-1990, shows that these forces accounted for 80% of productivity growth, playing an important role the displacement of inefficient firms by competitive entry.

Bibliographic References

  • Armington, C. (1986) Entry and Exit of Firms: An International Comparison. Economic Council of Canada, Otawa
  • Aw, B. Y., Chen, X., Roberts, M.J. (1997) Firm-level Evidence on Productivity Differentials and Turnover in Taiwanese Manufacturing. Journal of Development Economics 66:51-86
  • Arellano, M., Bond, S. (1991) Some Tests of Specification for Panel Data MonteCarlo Evidence and Application to Employment Equations. Review of Economics Studies 58:277-297
  • Baily, M.N., Hulten, C., Campbell, D. (1992) Productivity Dynamics in Manufacturing Plants. Brooking Papers on Economic Activity: Microeconomics: 187-267
  • Baldwin, J., Gorecki, P. (1991) Entry and Exit and Productivity Growth. In: Geroski, P.A., Schwalbach, J. (eds.) Entry and Market Contestability: An International Comparison. Basil Blackwell, Oxford
  • Baldwin, J. (1995) The Dynamics of Industrial Competition. Cambridge University Press, Cambridge, MA
  • Cable J., Schwalbach, J. (1991) International Comparisons of Entry and Exit. In: Geroski, P.A., Schwalbach, J. (eds.) Entry and Market Contestability: An International Comparison. Basil Blackwell, Cambridge, MA
  • Caves, R.E., Barton, D. (1990) Efficiency in U.S. Manufacturing Industries. MIT Press, Cambridge, MA
  • Caves, R.E. (1998) Industrial Organization and New Findings on the Turnover and Mobility of Firms. Journal of Economic Literature 36:1947-1982
  • Delgado, M., Jaumandreu, J., Martín-Marcos, A. (1999) Input Cost, Capacity Utilization and Substitution in the Short Run. Spanish Economic Review 1:239-262
  • Dunne, T., Roberts, M.J., Samuelson, L. (1988) Patterns of Entry and Exit in US Manufacturing Industries. Rand Journal of Economics 19:495-515
  • Geroski, P.A. (1989) Entry, Innovation and Productivity Growth. Review of Economics and Statistics 71:572-578
  • Geroski, P.A. (1995) What Do We Know About Entry? International Journal of Industrial Organization 13:421-140
  • Griliches, Z. (1995) R&D and Productivity. In: Stonemman, P. (ed.) Handbook of the Economics of Innovation and Technical Change. Blackwell, Oxford
  • Griliches, Z., Regev, H. (1995) Firm Productivity in Israeli industry 1979-1988. Journal of Econometrics 65: 175-203
  • Hall, R.E. (1988) The Relation between Price and Marginal Cost in U.S. Industry. Journal of Political Economy 96:921-947
  • Hall, R.E. (1990) Invariance Properties of Solow's Productivity Residual. In: Diamond, P. (ed.) Growth, Productivity, Unemployment. MIT Press, Cambridge, MA
  • Harrison, A.E. (1994) Productivity, Imperfect Competition and Trade Reform, Theory and Evidence. Journal of International Economics 36:53-73
  • Hopenhayn, H. (1992) Entry, Exit, and Firm Dynamics in Long-Run Equilibrium. Econometrica 60:1127-1150
  • Jovanovic, B. (1982) Selection and the Evolution of Industry. Econometrica 50:649-670
  • Liu, L., Tybout, J.R. (1996) Productivity Growth in Chile and Colombia. In: Roberts, M.J., Tybout, J.R. (eds.) Industrial Evolution in Developing Countries: Micro Patterns of Turnover, Productivity and Market Structure. Oxford University Press, New York
  • Nickell, S., Wadhwani, S., Wall, M. (1992) Productivity Growth in UK Companies, 1975-1986. European Economic Review 36:1055-1091
  • OECD (1996) Technology, Productivity and Job Creation. Paris
  • Olley, G.S., Pakes, A. (1996) The Dynamics of Productivity in the Telecommunications Equipment Industry. Econometrica 64: 1263-1297
  • Pakes, A. (1999) A Framework for Applied Dynamics Analysis in I.O. NBER Discussion Paper #8024
  • Siotis, G. (2003) Competitive Pressure and Economic Integration: An Illustration for Spain, 1983-1996. International Journal of Industrial Organization 21:1435-1459
  • Tybout, J.R. (1996). Heterogeneity and Productivity Growth: Assessing the Evidence. In: Roberts, M.J., Tybout, J.R. (eds.) Industrial Evolution in Developing Countries: Micro Patterns of Turnover, Productivity and Market Structure. Oxford University Press, New York
  • Velázquez, F.J. (1993) Economías de escala y tamaños óptimos en la industria española (1980-1986). Investigaciones Económicas 17:507-525
  • Vives, X. (1993) La competencia en la perspectiva europea. Papeles de Economía Española 57:103-116
Data source: Dialnet