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Industry structure dynamics and productivity growth

Author

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  • Lech Kalina

    (Warsaw School of Economics)

Abstract

Economic theory typically predicts that productivity should increase when a firm’s market is expanding since the benefits of reducing costs are higher when spread across a larger market. On the other hand there is a strong line of research stressing the positive impact of increasing competition and claiming that productivity should jump when a firm’s market is being squeezed by new compe titors. This paper investigates the effects of industry structure dynamics on productivity growth on panel data from industries of ten European countries. The econometric results provide empirical support for p ositive impact of less fragmented market stru ctures on productivity, however results also point out the important role which dynamics of firms turnover play in industry performance.

Suggested Citation

  • Lech Kalina, 2013. "Industry structure dynamics and productivity growth," Working Papers 67, Department of Applied Econometrics, Warsaw School of Economics.
    • Handle: RePEc:wse:wpaper:67
    as

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    File URL: http://kolegia.sgh.waw.pl/pl/KAE/struktura/IE/struktura/ZES/Documents/Working_Papers/aewp01-13.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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