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Impact of Market Entry and Exit on EU Productivity and Growth Performance

  • Michele Cincera

    (Université Libre de Bruxelles-DULBEA-CERT & CEPR)

  • Olivia Galgau

    (Université Libre de Bruxelles-DULBEA)

The European Union and its Member States have been engaged in product market reforms over a long period with notable reforms including the Single Market Program and the Lisbon Agenda launched in March 2000. Product market reforms are seen as exerting both a direct and an indirect impact on productivity, however, the net effects of the direct effect were found to be small. This study concentrates on the impact of product market reforms on firm entry and exit that can itself be decomposed into two effects: internal restructuring which refers to productivity growth of individual firms present in the industry and external restructuring whereby the process of market selection leads to a reallocation of resources among individual firms. The change in firm entry and exit will in turn affect macroeconomic performance.

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Paper provided by EconWPA in its series Industrial Organization with number 0503013.

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Length: 122 pages
Date of creation: 28 Mar 2005
Date of revision:
Handle: RePEc:wpa:wuwpio:0503013
Note: Type of Document - pdf; pages: 122
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