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Firm Entry And Exit In Brazil: Cross-Sectoral Evidence From Manufacturing Industry

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  • Nauro F. Campos
  • Mariana Iootty

Abstract

What are the determinants of firm entry and exit in Brazil? How do entry and exit rates affect productivity? This paper tries to answer these questions using panel data for about 104 Brazilian manufacturing sectors (3-digit level) for the period 1996 to 2002. Our results show that the share of exports in sectoral output is one main determinant of entry and exit rates. The results also suggest that in years of real per capita GDP decline, export propensity is associated with entry rates, while in years of GDP expansion, sectoral growth is positively associated with net entry. Finally, our results show that exit (and to a lesser extent, entry and net entry) is a very robust determinant of total factor productivity across industrial sectors in Brazil.

Suggested Citation

  • Nauro F. Campos & Mariana Iootty, 2005. "Firm Entry And Exit In Brazil: Cross-Sectoral Evidence From Manufacturing Industry," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 095, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2005:095
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    File URL: http://www.anpec.org.br/encontro2005/artigos/A05A095.pdf
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    References listed on IDEAS

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    3. Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2004. "Business environment and firm entry : Evidence from international data," Policy Research Working Paper Series 3232, The World Bank.
    4. Zvi Griliches, 1998. "R&D and Productivity Growth: Comparing Japanese and U.S. Manufacturing Firms," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 187-210, National Bureau of Economic Research, Inc.
    5. Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2006. "Entry regulation as a barrier to entrepreneurship," Journal of Financial Economics, Elsevier, vol. 82(3), pages 591-629, December.
    6. Bartelsman, Eric & Haltiwanger, John C. & Scarpetta, Stefano, 2004. "Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries," IZA Discussion Papers 1374, Institute of Labor Economics (IZA).
    7. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
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    Cited by:

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    2. Calá, Carla Daniela & Arauzo-Carod, Josep-Maria & Manjón-Antolín, Miguel, 2015. "The determinants of entrepreneurship in developing countries," Nülan. Deposited Documents 2125, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Canever, Mario Duarte & Carraro, André, 2012. "Enterprise creation and economic recovery: the case of Rio Grande do Sul," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.

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    More about this item

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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