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We discuss the literature on the importance of entry and exit for raising productivity growth. Using micro data for the UK for a period from 1980 to 2000, we find that the share of productivity growth accounted for by entry and exit has increased considerably: from around 25 per cent in the 1980s to around 50 per cent in the 1990s. We then ask to what extent increased globalization—measured as sectoral import penetration—might have explained this and find effects from both globalization and information and communication technology.
Each issue concentrates on a current theme in economic policy, with a balance between macro- and microeconomics, giving a valuable appraisal of economic policies worldwide. While the analysis is challenging and at the forefront of current thinking, articles are presented in non-technical language to make them readily accessible to all readers (such as government, business and policy-makers, academics and students). It is required reading for those who need to know where research is leading.
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Oxford Review of Economic Policy
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