Using panel data from Spain Farinas and Ruano (IJIO 2005) test three hypotheses from a model by Hopenhayn (Econometrica 1992): (H1) Firms that exit in year t were in t-1 less productive than firms that continue to produce in t. (H2) Firms that enter in year t are less productive than incumbent...

This book provides complete, yet non-technical, analyses of production fragmentation effects and thus targets a wide range of readers - including academics, researchers, policy-makers, students, entrepreneurs, and anyone who is interested in this subject. It investigates the economic impacts of...