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Market selection along the firm life cycle

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Author Info

  • Flora Bellone
  • Patrick Musso
  • Lionel Nesta
  • Michel Qu�r�

Abstract

This article analyses market selection in French manufacturing in the nineties. It argues that the determinants of firm survival have different effects depending on firm age. Results show that exiting firms display low levels of profitability and productivity. This selection process is more severe for young firms because industry structures favor the survival of mature firms. Concerning the latter, markets select against persistent bad performers, not against temporary losses of efficiency. These results reveal the presence of barriers to firm growth—not to entry—as an important driver of industry dynamics. Copyright 2008 , Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/icc/dtn025
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Bibliographic Info

Article provided by Oxford University Press in its journal Industrial and Corporate Change.

Volume (Year): 17 (2008)
Issue (Month): 4 (August)
Pages: 753-777

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Handle: RePEc:oup:indcch:v:17:y:2008:i:4:p:753-777

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