UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

Creative destruction and transition: the effects of firm entry and exit on productivity growth in Estonia

Masso, J.; Eamets, R.; Philips, K.; (2004) Creative destruction and transition: the effects of firm entry and exit on productivity growth in Estonia. (Economics Working Papers 38). Centre for the Study of Economic and Social Change in Europe, SSEES, UCL: London, UK. Green open access

[img]
Preview
PDF
17538.pdf

Download (703kB)

Abstract

This paper presents one of the first studies of firm demographics in Estonia, particularly, on the processes of firm entry and exit as well as survival analysis of new firms. Also decompositions of productivity change into components consisting of resource reallocation, firm entry and exit, and productivity growth within continuing firms is carried out. Our results, derived from a novel database of the population of Estonian firms, show that firm turnover has been rather high in Estonia during the observed period from 1995 to 2001, resulting from low institutional entry barriers and emergence of the SME sector. The high survival rates for new firms and surviving firms' relatively fast growth could reflect their relatively high productivity compared to incumbent firms and changes in the sectoral structure of the economy. The decomposition of productivity change shows that the high productivity growth has been mostly from within-firm productivity growth (e.g. the adoption of new production technologies and organizational changes), but the reallocation of production factors (especially the exit of low productivity units) has played an important role as well.

Type: Working / discussion paper
Title: Creative destruction and transition: the effects of firm entry and exit on productivity growth in Estonia
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.ssees.ucl.ac.uk/wp38sum.htm
Language: English
Keywords: Firm survival, firm entry and exit, productivity decompositions, Estonia
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES
URI: https://discovery.ucl.ac.uk/id/eprint/17538
Downloads since deposit
1,774Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item