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Entry and Productivity Growth: Evidence From Microlevel Panel Data

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  • Prantl, Susanne
  • Howitt, Peter
  • Griffith, Rachel
  • Blundell, Richard
  • Aghion, Philippe

Abstract

How does entry affect productivity growth of incumbents? In this paper we exploit policy reforms in the United Kingdom that changed entry conditions by opening up the U.K. economy during the 1980s and panel data on British establishments to shed light on this question. We show that more entry, measured by a higher share of industry employment in foreign firms, has led to faster total factor productivity growth of domestic incumbent firms and thus to faster aggregate productivity growth.

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File URL: http://dash.harvard.edu/bitstream/handle/1/4481510/aghion_entryproductivity.pdf
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Bibliographic Info

Paper provided by Harvard University Department of Economics in its series Scholarly Articles with number 4481510.

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Date of creation: 2004
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Publication status: Published in Journal of the European Economic Association
Handle: RePEc:hrv:faseco:4481510

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  1. Disney, Richard F & Haskel, Jonathan & Heden, Ylva, 2000. "Restructuring And Productivity Growth In UK Manufacturing," CEPR Discussion Papers 2463, C.E.P.R. Discussion Papers.
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