Entry And Productivity Growth: Evidence From Microlevel Panel Data

Topics:
Organization
Tags:
Entry,
Productivity Growth,
Total Factor Productivity
Source:
Harvard University

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Overview: How does entry affect productivity growth of incumbents? This paper exploits policy reforms in the United Kingdom that changed entry conditions by opening up the U.K. economy during the 1980s and panel data on British establishments to shed light on this question. More entry, measured by a higher share of industry employment in foreign firms, has led to faster total factor productivity growth of domestic incumbent firms and thus to faster aggregate productivity growth is shown.

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Format: PDF | Size: 140KB | Date: Apr 2004 | Pages: 12

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