id okr-10986-17423
recordtype oai_dc
spelling okr-10986-174232021-04-23T14:03:37Z Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries Bartelsman, Eric Haltiwanger, John Scarpetta, Stefano ACCOUNTING AVERAGE PRODUCTIVITY BARRIERS TO ENTRY BASIC METALS BUSINESS ENVIRONMENT CAPITAL MARKETS CIVIL SERVICE COUNTRY COMPARISONS DEMOGRAPHICS DEVELOPING COUNTRIES ECONOMIC CONDITIONS EFFICIENCY IMPROVEMENTS EMPIRICAL EVIDENCE EXPANSION FINANCIAL MARKETS FIRM SIZE FIRMS FISHING FIXED COSTS FOOD PRODUCTS FORESTRY INNOVATION INSURANCE LABOR PRODUCTIVITY MARKET ECONOMIES MINING PENSIONS PETROLEUM PRODUCERS PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH PROFITABILITY RECYCLING RESEARCH AGENDA SIZE OF FIRMS SMALL BUSINESSES SMALL FIRMS TECHNOLOGICAL CHANGE TECHNOLOGICAL FACTORS TRANSITION ECONOMIES TRANSPORT TURBULENCE UNCERTAINTY UNEMPLOYMENT VENEZUELA WATER SUPPLY In this paper the authors provide an analysis of the process of creative destruction across 24 countries and 2-digit industries over the past decade. They rely on a newly assembled dataset that draws from different micro data sources (business registers, census, or representative enterprise surveys). The novelty of their approach is in the harmonization of firm-level data across countries, which enables international comparisons and the identification of country-specific factors as opposed to sector and time effects. All countries display a massive reallocation of resources, with the entry and exit of many firms in all markets, the failure of many newcomers and the expansion of successful ones. This process of creative destruction affects productivity directly by reallocating resources toward more productive uses, but also indirectly through the effects of increased market contestability. There are also large differences across groups of countries. While entry and exit rates are fairly similar across industrial countries, post-entry performance differs markedly between Europe and the United States, a potential indication of the importance of barriers to firm growth as opposed to barriers to entry. Transition economies show an even more impressive process of creative destruction and, those that have progressed the most toward a market economy show better outcomes from this process. Finally, Mexico shows large firm dynamics with many new firms entering the battle but also many failing rapidly, while Argentina resembles Continental Europe with smaller flows and less impressive post-entry growth of successful firms. 2014-03-27T19:38:54Z 2014-03-27T19:38:54Z 2004-12 http://documents.worldbank.org/curated/en/2004/12/5587902/microeconomic-evidence-creative-destruction-industrial-developing-countries http://hdl.handle.net/10986/17423 English en_US Policy Research Working Paper;No. 3464 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTING
AVERAGE PRODUCTIVITY
BARRIERS TO ENTRY
BASIC METALS
BUSINESS ENVIRONMENT
CAPITAL MARKETS
CIVIL SERVICE
COUNTRY COMPARISONS
DEMOGRAPHICS
DEVELOPING COUNTRIES
ECONOMIC CONDITIONS
EFFICIENCY IMPROVEMENTS
EMPIRICAL EVIDENCE
EXPANSION
FINANCIAL MARKETS
FIRM SIZE
FIRMS
FISHING
FIXED COSTS
FOOD PRODUCTS
FORESTRY
INNOVATION
INSURANCE
LABOR PRODUCTIVITY
MARKET ECONOMIES
MINING
PENSIONS
PETROLEUM
PRODUCERS
PRODUCTION TECHNOLOGY
PRODUCTIVITY
PRODUCTIVITY GROWTH
PROFITABILITY
RECYCLING
RESEARCH AGENDA
SIZE OF FIRMS
SMALL BUSINESSES
SMALL FIRMS
TECHNOLOGICAL CHANGE
TECHNOLOGICAL FACTORS
TRANSITION ECONOMIES
TRANSPORT
TURBULENCE
UNCERTAINTY
UNEMPLOYMENT
VENEZUELA
WATER SUPPLY
spellingShingle ACCOUNTING
AVERAGE PRODUCTIVITY
BARRIERS TO ENTRY
BASIC METALS
BUSINESS ENVIRONMENT
CAPITAL MARKETS
CIVIL SERVICE
COUNTRY COMPARISONS
DEMOGRAPHICS
DEVELOPING COUNTRIES
ECONOMIC CONDITIONS
EFFICIENCY IMPROVEMENTS
EMPIRICAL EVIDENCE
EXPANSION
FINANCIAL MARKETS
FIRM SIZE
FIRMS
FISHING
FIXED COSTS
FOOD PRODUCTS
FORESTRY
INNOVATION
INSURANCE
LABOR PRODUCTIVITY
MARKET ECONOMIES
MINING
PENSIONS
PETROLEUM
PRODUCERS
PRODUCTION TECHNOLOGY
PRODUCTIVITY
PRODUCTIVITY GROWTH
PROFITABILITY
RECYCLING
RESEARCH AGENDA
SIZE OF FIRMS
SMALL BUSINESSES
SMALL FIRMS
TECHNOLOGICAL CHANGE
TECHNOLOGICAL FACTORS
TRANSITION ECONOMIES
TRANSPORT
TURBULENCE
UNCERTAINTY
UNEMPLOYMENT
VENEZUELA
WATER SUPPLY
Bartelsman, Eric
Haltiwanger, John
Scarpetta, Stefano
Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries
relation Policy Research Working Paper;No. 3464
description In this paper the authors provide an analysis of the process of creative destruction across 24 countries and 2-digit industries over the past decade. They rely on a newly assembled dataset that draws from different micro data sources (business registers, census, or representative enterprise surveys). The novelty of their approach is in the harmonization of firm-level data across countries, which enables international comparisons and the identification of country-specific factors as opposed to sector and time effects. All countries display a massive reallocation of resources, with the entry and exit of many firms in all markets, the failure of many newcomers and the expansion of successful ones. This process of creative destruction affects productivity directly by reallocating resources toward more productive uses, but also indirectly through the effects of increased market contestability. There are also large differences across groups of countries. While entry and exit rates are fairly similar across industrial countries, post-entry performance differs markedly between Europe and the United States, a potential indication of the importance of barriers to firm growth as opposed to barriers to entry. Transition economies show an even more impressive process of creative destruction and, those that have progressed the most toward a market economy show better outcomes from this process. Finally, Mexico shows large firm dynamics with many new firms entering the battle but also many failing rapidly, while Argentina resembles Continental Europe with smaller flows and less impressive post-entry growth of successful firms.
format Publications & Research :: Policy Research Working Paper
author Bartelsman, Eric
Haltiwanger, John
Scarpetta, Stefano
author_facet Bartelsman, Eric
Haltiwanger, John
Scarpetta, Stefano
author_sort Bartelsman, Eric
title Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries
title_short Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries
title_full Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries
title_fullStr Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries
title_full_unstemmed Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries
title_sort microeconomic evidence of creative destruction in industrial and developing countries
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2004/12/5587902/microeconomic-evidence-creative-destruction-industrial-developing-countries
http://hdl.handle.net/10986/17423
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