Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87779
Authors: 
Hyytinen, Ari
Maliranta, Mika
Year of Publication: 
2011
Series/Report no.: 
ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1253
Abstract: 
This paper studies how firms contribute to the productivity growth of an industry over their lifecycle. We present a decomposition method that allows us to condition the components of productivity growth on the age of production units. We find evidence for a prolonged positive exit effect that mirrors market selection during the early stages of firms'; lifecycle. This effect is tightly related to the negative initial productivity effect of entry. We also find some evidence that productivity-enhancing reallocation of resources between firms is concentrated on the middle aged firms.
Subjects: 
Productivity
decomposition
lifecycle
entry
exit
JEL: 
O12
O14
O47
Document Type: 
Working Paper

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