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Turbulence and Productivity; an analysis of 40 Dutch regions in the period 1988-1996

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Author Info
Henry Nieuwenhuijsen
Niels Bosma

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Abstract

From an empirical perspective there is growing evidence on the relation between size class distributions and economic performance. However, the question whether this change of the size class structure of industries has influenced economic performance is still underresearched. The purpose of this study is to assess the effect of entry and exit of firms on productivity in a regional approach. A model for total factor productivity is estimated using data of 40 Dutch regions for the years 1988 through 1996. The regions can be des-aggregated into two separate sectors: manufacturing and services. The findings indicate some positive effects of turbulence on total factor productivity of regions and thereby on productivity and growth at macro-level. In the service sector it was found that turbulence has an upward impact on the TFP growth in a region.

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Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number N200205.

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Length: 15 pages
Date of creation: 01 Aug 2002
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Handle: RePEc:eim:papers:n200205

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. David B. Audretsch & A. Roy Thurik, 2000. "Capitalism and democracy in the 21st Century: from the managed to the entrepreneurial economy," Journal of Evolutionary Economics, Springer, vol. 10(1), pages 17-34. [Downloadable!] (restricted)
  2. Schmitz, James A, Jr, 1989. "Imitation, Entrepreneurship, and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 721-39, June. [Downloadable!] (restricted)
  3. Nickell, Stephen J, 1996. "Competition and Corporate Performance," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 724-46, August. [Downloadable!] (restricted)
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  4. M. Carree & A. Thurik, 1998. "Small firms and economic growth in europe," Atlantic Economic Journal, International Atlantic Economic Society, vol. 26(2), pages 137-146, June. [Downloadable!] (restricted)
  5. David B. Audretsch & A. Roy Thurik, 1999. "Innovation, Industry Evoluation and Employment," Tinbergen Institute Discussion Papers 99-068/3, Tinbergen Institute. [Downloadable!]
  6. Holmes, Thomas J & Schmitz, James A, Jr, 1990. "A Theory of Entrepreneurship and Its Application to the Study of Business Transfers," Journal of Political Economy, University of Chicago Press, vol. 98(2), pages 265-94, April. [Downloadable!] (restricted)
  7. Wennekers, Sander & Thurik, Roy, 1999. " Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August. [Downloadable!] (restricted)
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  1. Stel, A.J. van & Suddle, K., 2005. "The Impact of New Firm Formation on Regional Development in the Netherlands," Research Paper ERS-2005-075-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
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  2. Andre van Stel & Bart Diephuis, 2004. "Business dynamics and employment growth: a cross-country analysis," Papers on Entrepreneurship, Growth and Public Policy 2004-32, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
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