Do firm entry and exit improve the competitiveness of regions? If so, is this a universal mechanism or is it contingent on the type of industry or region in which creative destruction takes place? This paper analyses the effect of firm entry and exit on the competitiveness of regions, measured...

Do processes of firm entry and exit improve the competitiveness of regions? If so, is this a universal mechanism or is it contingent on the type of industry or region in which creative destruction takes place? This paper analyses the effect of firm entry and exit on the competitiveness of...

In this paper we study the effects of reforms to corporate and personal income taxation on the rate of firm entry and exit using industry data for 19 OECD countries from 1998 to 2005. Using a difference-in-differences approach to correct for endogeneity bias we find that increases in corporate...

This paper studies the implications of entry costs for business formation in a dynamic stochastic general equilibrium model with endogenous entry and exit. The paper first documents some facts about business formation in the US. Exit is more volatile than entry, both are more volatile than...

In this paper we study the effects of reforms to corporate and personal income taxation on the rate of firm entry and exit using industry data for 19 OECD countries from 1998 to 2005. Using a difference-in-differences approach to correct for endogeneity bias we find that increases in corporate...

This paper investigates the connection between firm entry and exit and labour productivity growth. The study has its theoretical foundations in modern Schumpeterian growth theory, distance to frontier model and vintage capital models. The importance of productivity enhancing restructuring has...

This paper revisits the "footloose" nature of multinational firms (MNFs) hypothesis. Using firm-level data for Belgium over the period 1997-2008, we rely on a Probit model and take into account the endogeneity of the determinants of firm exit. Our results may be summarised as follows. First, the...

The 'big-bang' liberalization of the inefficient Russian economy in 1992 provides a fruitful setting for analysing the impact of several dimensions of market competition and other factors on enterprise efficiency. We analyse 1992-1998 panel data on 14,961 enterprises covering 75 percent of...

This study examines the impact of regional competitiveness on the innovative activity of entrepreneurial firms. Based on a unique and hand-collected dataset of publicly listed high-technology start-ups and university regions, this paper tests how regional competitiveness and university...

The capability to generate new knowledge and to create new firms differs across regions. Our study is an attempt to test the extent to which differences in such capabilities are associated with regional competitiveness. Using data from Spanish NUTS2 regions for the period 2000–2004, our...