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The Significance of Entry and Exit for Regional Productivity Growth

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  • Udo Brixy

Abstract

Brixy U. The significance of entry and exit for regional productivity growth, Regional Studies. This study addresses the debate about whether start-ups increase regional productivity growth through such effects as the fostering of competition. A new longitudinal dataset at the establishment level for eastern and western Germany is used to analyse the impact of the number of start-ups and their survival on the growth of total factor productivity and employment. It is demonstrated that start-ups do affect regional productivity growth. But the impact is not proved continually: it varies between the manufacturing and the service sector and between the two parts of Germany.

Suggested Citation

  • Udo Brixy, 2014. "The Significance of Entry and Exit for Regional Productivity Growth," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1051-1070, June.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:6:p:1051-1070
    DOI: 10.1080/00343404.2014.895804
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    References listed on IDEAS

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    1. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, April.
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    Cited by:

    1. Claudio Loporcaro & Vito Albino & Angelo Natalicchio, 2023. "Regional Legacy Effects on Radically Innovative New Ventures’ Risks," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(2), pages 376-419, July.
    2. Eberle, Johanna & Schmucker, Alexandra, 2017. "The establishment History Panel : Redesign and update 2016," FDZ Methodenreport 201703_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. repec:iab:iabfme:201703(en is not listed on IDEAS
    4. Fritsch, Michael & Changoluisa, Javier, 2017. "New business formation and the productivity of manufacturing incumbents: Effects and mechanisms," Journal of Business Venturing, Elsevier, vol. 32(3), pages 237-259.
    5. Thomas Neumann, 2023. "Are greener start-ups of superior quality? The impact of environmental orientation on innovativeness, growth orientation, and international orientation," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-24, December.
    6. Tomasz Mickiewicz & Frederick Wedzerai Nyakudya & Nicholas Theodorakopoulos & Mark Hart, 2017. "Resource endowment and opportunity cost effects along the stages of entrepreneurship," Small Business Economics, Springer, vol. 48(4), pages 953-976, April.
    7. Meri Davlasheridze & Pinar C. Geylani, 2017. "Small Business vulnerability to floods and the effects of disaster loans," Small Business Economics, Springer, vol. 49(4), pages 865-888, December.
    8. Javier Changoluisa & Michael Fritsch, 2020. "New Business Formation and Incumbents’ Perception of Competitive Pressure," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(1), pages 165-197, February.
    9. Michael Fritsch & Sandra Kublina, 2015. "Entrepreneurship,Growth, Regional Growth Regimes," Jena Economics Research Papers 2015-002, Friedrich-Schiller-University Jena.
    10. Di Matteo, Dante & Mariotti, Ilaria & Rossi, Federica, 2023. "Transport infrastructure and economic performance: An evaluation of the Milan-Bologna high-speed rail corridor," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    11. Yi Zhou & Canfei He & Shengjun Zhu, 2015. "Does Creative Destruction Work for Chinese Regions? An Empirical Study on the Articulation between Firm Exit and Entry," Papers in Evolutionary Economic Geography (PEEG) 1522, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    12. Arauzo Carod, Josep Maria & Coll Martínez, Eva & Turcu, Camelia, 2018. "Where New Creative Industries Locate? Evidence from French Departments," Working Papers 2072/307042, Universitat Rovira i Virgili, Department of Economics.
    13. Eberle Johanna & Schmucker Alexandra, 2017. "The Establishment History Panel – Redesign and Update 2016," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(6), pages 535-547, December.
    14. European Commission, Directorate-General for Competition (Brussels) (ed.), 2016. "Ex-post evaluation of the impact of restructuring aid decisions on the viability of aided (non-financial) firms: Final report," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 130514.
    15. Anil Rupasingha, 2017. "Local business ownership and local economic performance: evidence from US counties," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 659-673, May.
    16. Thomas Neumann, 2021. "The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review," Management Review Quarterly, Springer, vol. 71(3), pages 553-584, July.

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