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The Importance of Entry to Canadian Manufacuring, with an Appendix on Measurement Issues

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  • John R. Baldwin
  • Desmond Beckstead
  • Andrée Girard

Abstract

Understanding the importance of the dynamic entry process in the Canadian economy involves measuring size of entry. The main purpose of this paper is to summarise the information that we have on the amount of entry in Canada. The paper also fulfils another purpose. Some studies have focused on cross-country comparisons (Geroski and Schwalbach, 1991: OECD, 2001). Interpretation of the results of these studies is difficult unless methodological issues regarding how entry is measured are addressed. Without an understanding of the extent to which different databases produce different results, international comparisons are difficult to evaluate. Cross-country comparisons that are derived from extremely different data sources may be misleading because of the lack of comparability. Since there is more than one reliable database that can be used to estimate entry in Canada, this paper asks how measured entry rates vary across different Canadian databases. By examining the difference in entry ... L'importance de l'entrée dans le secteur canadien de la fabrication, document accompagné d'une annexe sur les questions de mesure Il faut mesurer l’étendue de l’entrée dans l’économie canadienne pour comprendre l’importance du processus dynamique d’entrée à l’intérieur de cette économie. Le présent document a principalement pour objectif de résumer l’information dont nous disposons sur l’envergure de l’entrée dans l’économie au Canada. Il réalise également un autre objectif. Certaines études sont axées sur des comparaisons entre pays (Geroski et Schwalbach, 1991; OCDE, 2001). Il est difficile d’interpréter les résultats de ces études à moins d’aborder des questions méthodologiques qui se rattachent à la façon de mesurer l’entrée dans l’économie. Il est également difficile d’évaluer des comparaisons au niveau international si l’on ne comprend pas à quel point des bases de données différentes produisent des résultats différents. Les comparaisons entre pays établies à partir de sources de données extrêmement différentes peuvent être trompeuses en raison de leur manque de comparabilité. Parce qu’il existe plus ...

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Science, Technology and Industry Working Papers with number 2002/3.

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Date of creation: 27 Feb 2002
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Handle: RePEc:oec:stiaaa:2002/3-en

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References

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  1. John Baldwin & Timothy Dunne & John Haltiwanger, 1994. "A Comparison of Job Creation and Job Destruction in Canada and the United States," NBER Working Papers 4726, National Bureau of Economic Research, Inc.
  2. Newman, Howard H, 1978. "Strategic Groups and the Structure-Performance Relationship," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 417-27, August.
  3. Ariel Pakes & Richard Ericson, 1989. "Empirical Implications of Alternative Models of Firm Dynamics," NBER Working Papers 2893, National Bureau of Economic Research, Inc.
  4. John C. Haltiwanger, 1997. "Measuring and analyzing aggregate fluctuations: the importance of building from microeconomic evidence," Review, Federal Reserve Bank of St. Louis, issue May, pages 55-78.
  5. Baldwin, John R. & Raffiquzzaman, Mohammed, 1995. "Selection Versus Evolutionary Adaptation: Learning and Post-entry Performance," Analytical Studies Branch Research Paper Series 1994072e, Statistics Canada, Analytical Studies Branch.
  6. Bee Yan Aw & Xiaomin Chen & Mark J. Roberts, 1997. "Firm-level Evidence on Productivity Differentials, Turnover, and Exports in Taiwanese Manufacturing," NBER Working Papers 6235, National Bureau of Economic Research, Inc.
  7. Baldwin, John R. & Bian, Lin & Dupuy, Richard & Gellatly, Guy, 2000. "Failure Rates for New Canadian Firms: New Perspectives on Entry and Exit," Failure Rates for New Canadian Firms: New Perspectives on Entry and Exit, Statistics Canada, Economic Analysis, number stcb5e, December.
  8. Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E. With contributions by-Name:Dunne,Tim With contributions by-Name:Haltiwanger,John, 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574, October.
    • Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E. With contributions by-Name:Dunne,Tim With contributions by-Name:Haltiwanger,John, 1995. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521465618, October.
  9. Baldwin, John R., 1996. "Productivity Growth, Plant Turnover and Restructuring in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 1995087e, Statistics Canada, Analytical Studies Branch.
  10. Lin, Zhengxi & Picot, Garnett & Yates, Janice, 1999. "The Entry and Exit Dynamics of Self-employment in Canada," Analytical Studies Branch Research Paper Series 1999134e, Statistics Canada, Analytical Studies Branch.
  11. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, December.
  12. Baldwin, John R. & Harchaoui, Tarek, 2002. "Productivity Growth in Canada," Productivity Growth in Canada, Statistics Canada, Economic Analysis, number stcb6e, December.
  13. Agarwal, Rajshree & Gort, Michael, 1996. "The Evolution of Markets and Entry, Exit and Survival of Firms," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 489-98, August.
  14. David B. Audretsch & A. Roy Thurik, 1999. "Innovation, Industry Evoluation and Employment," Tinbergen Institute Discussion Papers 99-068/3, Tinbergen Institute.
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Citations

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Cited by:
  1. Wulong Gu & Gary Sawchuk & Lori Rennison, 2003. "The effect of tariff reductions on firm size and firm turnover in canadian manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 139(3), pages 440-459, September.
  2. Brown, W. Mark & Beckstead, Desmond & Baldwin, John R., 2003. "Hollowing-out, Trimming-down or Scaling-up? An Analysis of Head Offices in Canada, 1999 to 2002," Economic Analysis (EA) Research Paper Series 2003019e, Statistics Canada, Analytical Studies Branch.
  3. Brons, Lajos, 2004. "On the Ontology of Events in Demographies of Organizations," MPRA Paper 1610, University Library of Munich, Germany, revised 2006.
  4. Baldwin, John R., 2005. "Death in the Industrial World: Plant Closures and Capital Retirement," Economic Analysis (EA) Research Paper Series 2005033e, Statistics Canada, Analytical Studies Branch.
  5. Martin-Barroso, David & Nuñez-Serrano, Juan Andres & Turrion, Jaime & Velazquez, Francisco J., 2011. "The European Map of Job Flows," MPRA Paper 33602, University Library of Munich, Germany, revised 2011.
  6. Maliranta, Mika, 2005. "Foreign-owned Firms and Productivity-enhancing Restructuring in Finnish Manufacturing Industries," Discussion Papers 965, The Research Institute of the Finnish Economy.
  7. Mika Maliranta, 2005. "R&D, International Trade and Creative Destruction—Empirical Findings from Finnish Manufacturing Industries," Journal of Industry, Competition and Trade, Springer, vol. 5(1), pages 27-58, January.
  8. Baldwin, John R. & Gellatly, Guy, 2006. "Innovation Capabilities: The Knowledge Capital Behind the Survival and Growth of Firms," The Canadian Economy in Transition 2006013e, Statistics Canada, Economic Analysis.

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