Entry and Exit Dynamics in Austrian Manufacturing
AbstractThis article investigates the determinants of entry and exit in the Austrian manufacturing sector based on 1981 to 1994 data. We study the response of entry, exit and other indicators of firm dynamics to changes in average plant size, size heterogeneity, concentration, incentives and vertical integration. By applying Bayesian simulation methods we estimate random coefficient models and study the symmetry of the determinants of entry and exit. Our empirical analysis shows that entry and exit rates are driven by the same determinants. The impacts of these determinates are nearly homogeneous for both, entry rates and exits rates, respectively. Moreover, we find (i) that changes in average plant size, size heterogeneity and concentration are not symmetric with respect to entry and exit, (ii) that changes in the growth of sales is weakly symmetric and (iii) that the growth rate of employment is strongly asymmetric across industries in Austrian manufacturing. Furthermore, we infer from the data that the turnover of firms influences the changes in the number of competitors. Low entry rates go hand in hand with low net entryrates and a low turnover.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness in its series Working Papers with number geewp36.
Date of creation: Jun 2004
Date of revision:
Note: PDF Document
Contact details of provider:
Postal: Augasse 2-6, 1090 Vienna, Austria
Web page: http://www.wu-wien.ac.at/inst/vw1/gee/
Entry; Exit; Industry Turbulence; MCMC;
Find related papers by JEL classification:
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-11-22 (All new papers)
- NEP-COM-2004-10-21 (Industrial Competition)
- NEP-ENT-2004-11-07 (Entrepreneurship)
- NEP-INO-2004-10-21 (Innovation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- M. A. Adelman, 1955. "Concept and Statistical Measurement of Vertical Integration," NBER Chapters, in: Business Concentration and Price Policy, pages 281-330 National Bureau of Economic Research, Inc.
- Ilmakunnas, Pekka & Topi, Jukka, 1996.
"Microeconomic and Macroeconomic Influences on Entry and Exit of Firms,"
Research Discussion Papers
6/1996, Bank of Finland.
- Pekka Ilmakunnas & Jukka Topi, 1999. "Microeconomic and Macroeconomic Influences on Entry and Exit of Firms," Review of Industrial Organization, Springer, vol. 15(3), pages 283-301, November.
- Asim Ansari & Kamel Jedidi & Sharan Jagpal, 2000. "A Hierarchical Bayesian Methodology for Treating Heterogeneity in Structural Equation Models," Marketing Science, INFORMS, vol. 19(4), pages 328-347, August.
- Carree, M. A. & Thurik, A. R., 1999.
"The carrying capacity and entry and exit flows in retailing,"
International Journal of Industrial Organization,
Elsevier, vol. 17(7), pages 985-1007, October.
- Carree, M.A. & Thurik, A.R., 1999. "The carrying capacity and entry and exit flows in retailing," Open Access publications from Maastricht University urn:nbn:nl:ui:27-3947, Maastricht University.
- 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 University Press, number 9780521633574, November.
- Sylvia Kaufmann & Sylvia Fruehwirth-Schnatter, 2003. "Investigating asymmetries in the bank lending channel. An analysis using Austrian banks’ balance sheet data," Working Papers 85, Oesterreichische Nationalbank (Austrian Central Bank).
- Pashigian, Peter, 1969. "The Effect of Market Size on Concentration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(3), pages 291-314, October.
- Shapiro, Daniel & Khemani, R. S., 1987. "The determinants of entry and exit reconsidered," International Journal of Industrial Organization, Elsevier, vol. 5(1), pages 15-26, March.
- Dunne, T. & Roberts, M.J., 1989. "Variation In Producer Turnover Across U.S. Manufacturing Industries," Papers 12-89-2, Pennsylvania State - Department of Economics.
- Fotopoulos, Georgios & Spence, Nigel, 1999. "Net entry behaviour in Greek manufacturing: consumer, intermediate and capital goods industries," International Journal of Industrial Organization, Elsevier, vol. 17(8), pages 1219-1230, November.
- Albert, James H & Chib, Siddhartha, 1993. "Bayes Inference via Gibbs Sampling of Autoregressive Time Series Subject to Markov Mean and Variance Shifts," Journal of Business & Economic Statistics, American Statistical Association, vol. 11(1), pages 1-15, January.
- Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
- Michael Peneder, 1999. "The Austrian Paradox: "Old" Structures but High Performance?," Austrian Economic Quarterly, WIFO, vol. 4(4), pages 239-247, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Werner Hoelzl).
If references are entirely missing, you can add them using this form.