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Market selection along the firm life cycle

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Author Info
Flora Bellone
Patrick Musso
Lionel Nesta
Michel Quéré

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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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Publisher 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
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:oup:indcch:v:17:y:2008:i:4:p:753-777

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  1. Patrick Musso & Stefano Schiavo, 2007. "The Impact of Financial Constaints on Firm Survival and Growth," Documents de Travail de l'OFCE 2007-37, Observatoire Francais des Conjonctures Economiques (OFCE). [Downloadable!]
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  2. Flora Bellone & Patrick Musso & Lionel Nesta & Stefano Schiavo, 2008. "Financial constraints as a barrier to export participation," Documents de Travail de l'OFCE 2008-29, Observatoire Francais des Conjonctures Economiques (OFCE). [Downloadable!]
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This page was last updated on 2009-12-25.


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