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

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  • Henry Nieuwenhuijsen
  • Niels Bosma

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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Bibliographic Info

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
Date of revision:
Handle: RePEc:eim:papers:n200205

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  1. repec:att:wimass:8827 is not listed on IDEAS
  2. 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.
  3. Wennekers, Sander & Thurik, Roy, 1999. " Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
  4. Stephen Nickell, 1993. "Competition and Corporate Performance," CEP Discussion Papers dp0182, Centre for Economic Performance, LSE.
  5. 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.
  6. David B. Audretsch & A. Roy Thurik, 1999. "Innovation, Industry Evoluation and Employment," Tinbergen Institute Discussion Papers 99-068/3, Tinbergen Institute.
  7. 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.
  8. 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.
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Cited by:
  1. André van Stel & Bart Diephuis, 2004. "Business dynamics and employment growth: A cross-country analysis," Scales Research Reports H200310, EIM Business and Policy Research.
  2. André Stel & Kashifa Suddle, 2008. "The impact of new firm formation on regional development in the Netherlands," Small Business Economics, Springer, vol. 30(1), pages 31-47, January.
  3. Andersson, Martin & Braunerhjelm, Pontus & Thulin, Per, 2011. "Creative Destruction and Productivity – entrepreneurship by type, sector and sequence," Working Paper Series in Economics and Institutions of Innovation 256, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  4. Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth – Past experiences, current knowledge and policy implications," Working Papers 2010:2, Swedish Entrepreneurship Forum.
  5. Kristina Nyström, 2009. "Entry, market turbulence and industry employment growth," Empirica, Springer, vol. 36(3), pages 293-308, August.

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