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

Author

Listed:
  • 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.

Suggested Citation

  • Colantone, Italo & Sleuwaegen, Leo, 2008. "Entry and exit of firms in a global economy: a cross-country and industry analysis," Vlerick Leuven Gent Management School Working Paper Series 2007-36, Vlerick Leuven Gent Management School.
    • Handle: RePEc:vlg:vlgwps:2007-36
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    Keywords

    Globalization; Exit; Entry;
    All these keywords.

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