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Do Schumpeterian Waves of Creative Destruction Lead to Higher Productivity? Panel Data Evidence from Poland


  • Frederic Warzynski


We look at the determinants and consequences of job reallocation in the 22 2-digit sectors of the manufacturing industry in Poland over the period 1993 - 1997. Import competition and competitive market structure (weak concentration) are found to lead to more reallocation. Moreover, more reallocation seems to be associated with more productive industries in some specifications. This confirms implications from neo-Schumpetarian growth models: one channel through which competition might positively affect growth is through the reallocation of scarce resources from declining firms to rising ones.

Suggested Citation

  • Frederic Warzynski, 2002. "Do Schumpeterian Waves of Creative Destruction Lead to Higher Productivity? Panel Data Evidence from Poland," LICOS Discussion Papers 12002, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:12002

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    1. Hylke Vandenbussche, 1996. "Is European antidumping protection against Central Europe too high?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(1), pages 116-138, March.
    2. Greetje Everaert & Hylke Vandenbussche, 2001. "Does Protection Harden Budget Constraints?," LICOS Discussion Papers 9801, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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    Cited by:

    1. Jaan Masso & Raul Eamets & Kaia Philips, 2004. "Firm Demographics And Productivity Dynamics In Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 25, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Ralitza Dimova, 2003. "The Impact on Structural Reforms on Employment Growth and Labour Productivity: Evidence from Bulgaria and Romania," William Davidson Institute Working Papers Series 2003-600, William Davidson Institute at the University of Michigan.
    3. Masso, Jaan & Eamets, Raul & Philips, Kaia, 2004. "Creative Destruction and Transition: The Effects of Firm Entry and Exit on Productivity Growth in Estonia," IZA Discussion Papers 1243, Institute for the Study of Labor (IZA).

    More about this item


    Schumpetarian growth; job flows; competition; trade;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • P3 - Economic Systems - - Socialist Institutions and Their Transitions

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