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Firm Entry and Productivity Turnovers in Import Substituting Markets: Evidence from the Petrochemical Industry in Colombia

Author

Listed:
  • Luis Gutierrez

    (Universidad del Rosario)

  • Carlos Pombo

    (Universidad del Rosario)

Abstract

this paper analyses plant entry and productivity turnovers across Colombia's petrochemical industry for the 1974-1998 period. Results show that successful entrants shaped industry productivity and induced plant restructuring among incumbent plants. entry flows increased steadily within plastics and boosted after trade liberalization. Total factor productivity growth decomposition shows that the incumbent effect dominates the turnover effect. Econometric results suggest that barriers to entry while complementary market variables such as industry productivity levels, growth is housing construction, and fringe competition induce firm entry.

Suggested Citation

  • Luis Gutierrez & Carlos Pombo, 2005. "Firm Entry and Productivity Turnovers in Import Substituting Markets: Evidence from the Petrochemical Industry in Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 63, pages 137-185, Julio-Dic.
    • Handle: RePEc:lde:journl:y:2005:i:63:p:137-185
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    File URL: https://revistas.udea.edu.co/index.php/lecturasdeeconomia/issue/view/315
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    References listed on IDEAS

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    More about this item

    Keywords

    Entry; Turnover; total factor productivity; petrochemical industry;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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