Exit, Entry and industry turbulence in Austrian Manufacturing, 1981-1994
This research explores both industry and temporal aspects of entry, exit and industry turbulence in Austrian manufacturing in the period between 1981 to 1994. It is shown that while the net entry of both firms and establishments is quite stable over time, exit and especially the turnover and volatility of firms is influenced more by temporal effects. A regression analysis into the determinants of industry dynamics associated with entry and exit shows that sunk costs, scale economies and industry growth are primary determinants for different entry and exit regimes across 2-digit sectors, while profitability is found to be significant for dynamics related to exit but not for the entry of firms. The net entry dynamics of firms and establishments are found to be different in regard to capital intensity and profitability.
|Date of creation:||May 2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.wu.ac.at/economics/en
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.:
- Kessides, Ioannis N, 1986. "Advertising, Sunk Costs, and Barriers to Entry," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 84-95, February.
- Caballero, R.J. & Hammour, M.L., 1991.
"The Cleansing Effect of Recessions,"
1991_59, Columbia University, Department of Economics.
- Ghemawat, Pankaj & Nalebuff, Barry, 1990. "The Devolution of Declining Industries," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 167-86, February.
- Pennings, Enrico & Sleuwaegen, Leo, 2000. "International relocation: firm and industry determinants," Economics Letters, Elsevier, vol. 67(2), pages 179-186, May.
- Lambson, Val Eugene & Jensen, Farrell E, 1998. "Sunk Costs and Firm Value Variability: Theory and Evidence," American Economic Review, American Economic Association, vol. 88(1), pages 307-13, March.
- Fotopoulos, Georgios & Spence, Nigel, 1997. " Net Entry of Firms into Greek Manufacturing: The Effects of Business Conditions," Small Business Economics, Springer, vol. 9(3), pages 239-53, June.
- repec:att:wimass:8904 is not listed on IDEAS
- Mueller, Willard F & Rogers, Richard T, 1980. "The Role of Advertising in Changing Concentration of Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 62(1), pages 89-96, February.
- repec:dgr:uvatin:19980013 is not listed on IDEAS
- Bhargava, A & Franzini, L & Narendranathan, W, 1982. "Serial Correlation and the Fixed Effects Model," Review of Economic Studies, Wiley Blackwell, vol. 49(4), pages 533-49, October.
- repec:dgr:uvatin:2098013 is not listed on IDEAS
- repec:dgr:uvatin:1998013 is not listed on IDEAS
- Caves, R E & Porter, M E, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, MIT Press, vol. 91(2), pages 241-61, May.
- Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1988.
"Patterns of Firm Entry and Exit in U.S. Manufacturing Industries,"
RAND Journal of Economics,
The RAND Corporation, vol. 19(4), pages 495-515, Winter.
- Dunne, T. & Roberts, M.J. & Samuelson, L., 1988. "Pattenrs Of Firm Entry And Exit In U.S. Manufacturing Industries," Papers 1-88-2, Pennsylvania State - Department of Economics.
- Dunne, T. & Roberts, M.J., 1989. "Variation In Producer Turnover Across U.S. Manufacturing Industries," Papers 12-89-2, Pennsylvania State - Department of Economics.
- Boyan Jovanovic, 2001. "Fitness and Age: Review of Carroll and Hannan's Demography of Corporations and Industries," Journal of Economic Literature, American Economic Association, vol. 39(1), pages 105-119, March.
- Pashigian, Peter, 1969. "The Effect of Market Size on Concentration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(3), pages 291-314, October.
- Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
- repec:cup:cbooks:9780521465618 is not listed on IDEAS
- repec:cup:cbooks:9780521633574 is not listed on IDEAS
- Michael Peneder, 2001. "The Austrian Paradox Revisited," WIFO Monatsberichte (monthly reports), WIFO, vol. 74(12), pages 737-748, December.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwgee:geewp21. 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: (Department of Economics)
If references are entirely missing, you can add them using this form.