Using panel data from Spain Farinas and Ruano (IJIO 2005) test three hypotheses from a model by Hopenhayn (Econometrica 1992): (H1) Firms that exit in year t were in t-1 less productive than firms that continue to produce in t. (H2) Firms that enter in year t are less productive than incumbent firms in year t. (H3) Surviving firms from an entry cohort were more productive than non-surviving fir...

This paper investigates the determinants of vertical integration and confronts some of the predictions of the leading approach to the internal organization of the firm with data from the UK manufacturing sector. Consistent with the theory, it shows that an upsteam and downstream activity pair are more likely to be vertically integrated, when the downstream (the producer) is more technology inte...

The paper investigates structural change among the four-digit (SIC) industries of the U.S. manufacturing sector during 1958-96 within a distribution dynamics framework. Focus is on the transition density of the Markov process that characterizes the value added shares of the industries. This transition density is estimated nonparametrically as well as by maximum likelihood, in which case the fun...

There is extensive empirical evidence pointing to the existence of sunk costs to exporting. Only higher productivity firms can profitably cover these and enter export markets. This is the standard explanation for the regularity with which econometric analyses reports that exporters are more productive than non-exporters. But what happens to their productivity trajectory once they have entered? ...

Entry, Exit and Productivity: Empirical Results for German Manufacturing Industries Using panel data from Spain Farinas and Ruano (IJIO 2005) test three hypotheses from a model by Hopenhayn (Econometrica 1992): (H1) Firms that exit in year t were in t-1 less productive than firms that continue to produce in t. (H2) Firms that enter in year t are less productive than incumbent firms in year t. (...

Liberalisation transforms market structures through the responses of incumbent firms and entrants to freedom of choice. Market shares tend to turn more volatile, and the agility and competitiveness of small, as against large, firms determine whether markets grow more concentrated, or less. We analyse the way these processes played out in Indian manufacturing industries over the 17-year period f...

FDI comes from different sources, with different levels of technology, different modes of transferring it and into different industries. The spillover effects of FDI may therefore differ. The paper attempts to study empirically the spillover effects of Japanese and U.S. FDI on the total factor productivity growth of the Indian firms, both at the firm and the industry level. The results show tha...

This paper examines and quantifies the complex linkages between industrial activity, environmental regulations and air pollution in China. We utilize a little used dataset of Chinese industry specific emissions for a variety of pollutants between 1996 and 2003. Our analysis allows us to investigate the role played by different determinants of emissions intensity. We find pollution intensity to ...

Swedish unemployment was very low up to the early 1990s when it rose rapidly. At the same time manufacturing employment fell by more than 20 %. The decentralisation of wage bargaining that started in 1983 may have contributed to this by making employment more shock sensitive or by increasing wage mark-ups. In Swedish plant-level data for manufacturing 1970–96 relatively less employment is in lo...