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Entry and exit in Dutch manufacturing industries

✍ Scribed by Aad J. M. Kleijweg; Marcel H. C. Lever


Publisher
Springer US
Year
1996
Tongue
English
Weight
587 KB
Volume
11
Category
Article
ISSN
0889-938X

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✦ Synopsis


The purpose of this paper is to analyse entry and exit of establishments in 71 3-digit industries in Dutch manufacturing between 1986 and 1990. A distinction is made between existing firm entry and new firm entry and between general exit and exit by bankruptcy. The incentive effect of profitability and the barrier effect of capital intensity and advertising intensity appear to be stronger for new firm entry than for existing firm entry. Growth and capital intensity turn out to reduce exit by bankruptcy, whereas R&D intensity reduces general exit. The positive impact of general exit on new firm entry and vice versa points to replacement and displacement.


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