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Entry and productivity growth: evidence from microlevel panel data

Aghion, P.; Blundell, R.; Griffith, R.; Howitt, P.; Prantl, S.; (2004) Entry and productivity growth: evidence from microlevel panel data. Journal of the European Economic Association , 2 (2-3) pp. 265-276. 10.1162/154247604323067970. Green open access

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Abstract

How does entry affect productivity growth of incumbents? In this paper we exploit 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. We show that 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.

Type: Article
Title: Entry and productivity growth: evidence from microlevel panel data
Open access status: An open access version is available from UCL Discovery
DOI: 10.1162/154247604323067970
Publisher version: http://dx.doi.org/10.1162/154247604323067970
Language: English
Additional information: Copyright Massachusetts Institute of Technology Press
Keywords: L5, L10, O31, O4
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/15844
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