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Entry and exit of firms in a global economy: a cross-country and industry analysis

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Author Info

  • Colantone, Italo
  • Sleuwaegen, Leo

    ()
    (Vlerick Leuven Gent Management School)

Abstract

This paper examines the impact of international trade on firm entry and exit in Europe. The results point to strong displacement exit and less creative replacement entry in industries characterized by increasing import competition Moreover, the evidence suggests strong selection and higher entry barriers in industries characterized by higher openness through the export channel. The negative effects of trade openness lose importance if the increasing trade exposure concerns intra-industry trade, mainly coupled with international sourcing within the industry.

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File URL: http://www.vlerick.be/en/7313-VLK/version/default/part/AttachmentData/data/vlgms-wp-2007-36.pdf
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Bibliographic Info

Paper provided by Vlerick Leuven Gent Management School in its series Vlerick Leuven Gent Management School Working Paper Series with number 2007-36.

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Length: 31 pages
Date of creation: 11 Jan 2008
Date of revision:
Handle: RePEc:vlg:vlgwps:2007-36

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Keywords: Globalization; Exit; Entry;

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Cited by:
  1. Elsa de Morais Sarmento & Alcina Nunes, 2012. "The Dynamics of Employer Entreprise Creation in Portugal Over the Last Two Decades: A Firm Size, Regional and Sectoral Perspective," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 36, pages 6-22, December.

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