Journal of the European Economic Association
journal article
Entry and Productivity Growth: Evidence from Microlevel Panel Data
Philippe Aghion, Richard Blundell, Rachel Griffith, Peter Howitt and Susanne Prantl
Journal of the European Economic Association
Vol. 2, No. 2/3, Papers and Proceedings of the Eighteenth Annual Congress of the European Economic Association (Apr. - May, 2004), pp. 265-276 (12 pages)
Published By: Oxford University Press
Journal of the European Economic Association
https://www.jstor.org/stable/40004902
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Abstract

How does entry affect productivity growth of incumbents? In this paper we exploit policy reforms in the United Kingdom that changed entry conditions by opening up the U.K. economy during the 1980s and panel data on British establishments to shed light on this question. We show that more entry, measured by a higher share of industry employment in foreign firms, has led to faster total factor productivity growth of domestic incumbent firms and thus to faster aggregate productivity growth.

Journal Information

Journal of the European Economic Association publishes articles of the highest scientific quality and is an outlet for theoretical and empirical work with global relevance. The journal is committed to promoting the ambitions of the EEA: the development and application of economics as a science, as well as the communication and exchange between teachers, researchers and students in economics.

Publisher Information

Oxford University Press is a department of the University of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide. OUP is the world's largest university press with the widest global presence. It currently publishes more than 6,000 new publications a year, has offices in around fifty countries, and employs more than 5,500 people worldwide. It has become familiar to millions through a diverse publishing program that includes scholarly works in all academic disciplines, bibles, music, school and college textbooks, business books, dictionaries and reference books, and academic journals.

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Journal of the European Economic Association © 2004 Oxford University Press