IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Firm dynamics and productivity growth: a comparison of the retail trade and manufacturing sectors

  • John R. Baldwin
  • Wulong Gu

This article examines how the reallocation of market shares differs in the retail trade and manufacturing sectors and what it reveals about the nature of competition in the two sectors. It compares and contrasts the amount and type of firm dynamics and examines its contribution to aggregate productivity growth in those two sectors. The potential competitive pressures acting on these two very different industries were very similar in that about the same proportion of firms entered and exited both industries. The survival processes associated with exit were similar. There were similar differences in productivity between entrants and the exits that they drove out. While the potential for turnover was the same, its realization was not. Retail entrants bought a different option when they experimented with entry that suggests different entry costs. They started at a larger relative size upon entry. The differences that occurred in relative entry size gave retail entrants a greater proportional share of output and inputs and led the turnover process to make a greater contribution to aggregate productivity growth. Copyright 2011 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

If 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.

File URL: http://hdl.handle.net/10.1093/icc/dtq064
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Oxford University Press in its journal Industrial and Corporate Change.

Volume (Year): 20 (2011)
Issue (Month): 2 (April)
Pages: 367-395

as
in new window

Handle: RePEc:oup:indcch:v:20:y:2011:i:2:p:367-395
Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://icc.oupjournals.org/Email:

Order Information: Web: http://www.oup.co.uk/journals

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oup:indcch:v:20:y:2011:i:2:p:367-395. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)

or (Christopher F. Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.