IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Entry and exit from manufacturing industries: symmetry, turbulence and simultaneity - some empirical evidence from Greek manufacturing industries, 1982-1988

  • Georgios Fotopoulos
  • Nigel Spence

The interdependence between entry and exit of firms into manufacturing industries is the focus of this research. When both entry and exit equations are estimated separately the results support the existence of strong symmetry in their determinants. When, however, entry and exit are estimated within a simultaneous equation framework, the empirical evidence does not offer sufficient grounds to support the notion that entry and exit are simultaneously linked. Instead it seems that they are two contemporaneously related processes which respond in like fashion to the structural characteristics found in particular industries. Their linked response is also extended to factors unaccounted for by the individual entry and exit formulations, and this expresses itself in significant contemporaneous correlation between the entry and exit equation residuals. The change in the identities of firms operating, implied by the positive correlation between entry and exit, may then be attributed to industry turbulent conditions, which in turn appear perhaps to be conditioned in the shorter run by time-invariant inter-industry differences in technological factors and sunk costs.

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:
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 Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 30 (1998)
Issue (Month): 2 (February)
Pages: 245-262

in new window

Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:245-262
Contact details of provider: Web page:

Order Information: Web:

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:taf:applec:v:30:y:1998:i:2:p:245-262. 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: (Michael McNulty)

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.