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Entry and exit of firms in a global economy: a cross-country and industry analysis

Colantone, Italo
Sleuwaegen, Leo
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Working paper
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Publication Year
2007
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Book
Publication Volume
Publication Issue
36
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Publication Number of pages
31
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Abstract
This paper examines the impact of international trade on firm entry and exit in Europe. The results point to strong displacement exit and less creative replacement entry in industries characterized by increasing import competition Moreover, the evidence suggests strong selection and higher entry barriers in industries characterized by higher openness through the export channel. The negative effects of trade openness lose importance if the increasing trade exposure concerns intra-industry trade, mainly coupled with international sourcing within the industry. Keywords: Globalization, Exit, Entry
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Globalisation, Exit, Entry
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