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Do Schumpeterian Waves of Creative Destruction Lead to Higher Productivity? Panel Data Evidence from Poland

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  • Frederic Warzynski

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Abstract

We look at the determinants and consequences of job reallocation in the 22 2-digit sectors of the manufacturing industry in Poland over the period 1993-1997. Import competition and competitve market structure (weak concentration) are found to lead to more reallocation. Moreover, more reallocation seems to be associated with more poductive industries in some specifications. This confirms implications from neo-Schumpterian growth models: one channel through which competition might positively affect growth is through the reallocation of scarce resources from declining firms to rising ones.

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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 485.

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Length: 21 pages
Date of creation: 23 Jul 2002
Date of revision:
Handle: RePEc:wdi:papers:2002-485

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Keywords: Schumpeterian growth; job flows; competition; trade;

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Cited by:
  1. Ralitza Dimova, 2003. "The Impact of Structural Reforms on Employment Growth and Labour Productivity: Evidence from Bulgaria and Romania," LICOS Discussion Papers 13203, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  2. Jaan Masso & Raul Eamets & Kaia Philips, 2004. "Firm Demographics And Productivity Dynamics In Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 25, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  3. Masso, Jaan & Eamets, Raul & Philips, Kaia, 2004. "Creative Destruction and Transition: The Effects of Firm Entry and Exit on Productivity Growth in Estonia," IZA Discussion Papers 1243, Institute for the Study of Labor (IZA).

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