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Growth and evolution of technical efficiency among entrant versus incumbent firms: the Spanish retail sector

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  • Cristina Suárez
  • Justo De Jorge

Abstract

This study investigates two objectives using a cohort approach: first, the firms' growth and, second, the technical efficiency of entrant and incumbent firms with a non-parametric approach, keeping in mind changes in the Spanish retail environment. The results obtained suggest, on the one hand, that evidence suggested by Gibrat's Law has not been fully proven. In this sense, smaller firms within their cohort membership grow faster than larger ones. On the other hand, our results indicate significant differences in the efficiency by sector. In this sense, entrant and incumbent firms shift the frontier in non-specialized and specialized sectors, respectively.

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  • Cristina Suárez & Justo De Jorge, 2011. "Growth and evolution of technical efficiency among entrant versus incumbent firms: the Spanish retail sector," The Service Industries Journal, Taylor & Francis Journals, vol. 32(14), pages 2265-2285, April.
    • Handle: RePEc:taf:servic:v:32:y:2011:i:14:p:2265-2285
    DOI: 10.1080/02642069.2011.594875
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    References listed on IDEAS

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    1. Baldwin, John R. Gu, Wulong, 2008. "Firm Turnover and Productivity Growth in the Canadian Retail Trade Sector," Economic Analysis (EA) Research Paper Series 2008053e, Statistics Canada, Analytical Studies Branch.
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    Cited by:

    1. Weber, Henning, 2013. "Learning By Doing in New Firms and the Optimal Rate of Inflation," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79761, Verein für Socialpolitik / German Economic Association.
    2. Weber, Henning, 2015. "Innovation and the Optimal Rate of Inflation," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113087, Verein für Socialpolitik / German Economic Association.

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