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Impact of Market Entry and Exit on EU Productivity and Growth Performance

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Author Info
Michele Cincera (Université Libre de Bruxelles-DULBEA-CERT & CEPR)
Olivia Galgau (Université Libre de Bruxelles-DULBEA)

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Abstract

The European Union and its Member States have been engaged in product market reforms over a long period with notable reforms including the Single Market Program and the Lisbon Agenda launched in March 2000. Product market reforms are seen as exerting both a direct and an indirect impact on productivity, however, the net effects of the direct effect were found to be small. This study concentrates on the impact of product market reforms on firm entry and exit that can itself be decomposed into two effects: internal restructuring which refers to productivity growth of individual firms present in the industry and external restructuring whereby the process of market selection leads to a reallocation of resources among individual firms. The change in firm entry and exit will in turn affect macroeconomic performance.

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Paper provided by EconWPA in its series Industrial Organization with number 0503013.

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Length: 122 pages
Date of creation: 28 Mar 2005
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Handle: RePEc:wpa:wuwpio:0503013

Note: Type of Document - pdf; pages: 122
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Related research
Keywords: Market entry and exit; product market reforms; macroeconomic performance;

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Find related papers by JEL classification:
L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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References listed on IDEAS
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.:
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    Other versions:
  3. Joaquim Oliveira Martins & Stefano Scarpetta & Dirk Pilat, 1996. "Mark-Up Ratios in Manufacturing Industries: Estimates for 14 OECD Countries," OECD Economics Department Working Papers 162, OECD, Economics Department. [Downloadable!]
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    Other versions:
  7. Stephen S. Golub, 2003. "Measures Of Restrictions on Inward Foreign Direct Investment for OECD Countries," OECD Economics Department Working Papers 357, OECD, Economics Department. [Downloadable!]
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    Other versions:
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    Other versions:
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    Other versions:
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Full references

Cited by:
(explanations, 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.)

  1. Fabio Schiantarelli, 2005. "Product Market Regulation and Macroeconomic Performance: A Review of Cross Country Evidence," Boston College Working Papers in Economics 623, Boston College Department of Economics, revised 04 Aug 2008. [Downloadable!]
    Other versions:
  2. Viktoria Kocsis & Ruslan Lukach & Bert Minne & Victoria Shestalova & Nick Zubanov & Henry van der Wiel, 2009. "Relation entry, exit and productivity," CPB Documents 180, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  3. Michele Cincera, 2005. "L’importance et l’étendue des barrières légales et administratives dans le cadre de la directive « Bolkestein » : une analyse comparative entre la Belgique et ses principaux partenaires comme," Working Papers DULBEA 05-11.RR, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
    Other versions:
  4. Laura Valkonen, 2006. "Deregulation as a Means to Increase Competition and Productivity," Discussion Papers 1014, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Laura Cavallo & Giuseppe Coco & Mario Martelli, 2009. "Evaluating administrative burdens through SCM: some indications from the Italian experience," series 0023, Dipartimento di Scienze Economiche - Università di Bari, revised Apr 2009. [Downloadable!]
  6. Gaëtan Nicodème & Jacques-Bernard Sauner-Leroy, 2007. "Product Market Reforms and Productivity: A Review of the Theoretical and Empirical Literature on the Transmission Channels," Journal of Industry, Competition and Trade, Springer, vol. 7(1), pages 53-72, March. [Downloadable!] (restricted)
    Other versions:
  7. Brendan Burchell & Alan Hughes, 2006. "The stigma of failure: An international comparison of failure tolerance and second chancing," ESRC Centre for Business Research - Working Papers wp334, ESRC Centre for Business Research. [Downloadable!]
  8. Alexander W. Hoffmaister, 2006. "Barriers to Retail Competition and Prices: Evidence from Spain," IMF Working Papers 06/231, International Monetary Fund. [Downloadable!]
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