Industry Switching in Developing Countries

Firm turnover (i.e., firm entry and exit) is a well-recognized source of sector-level productivity growth. In contrast, the role and importance of firms that switch activities from one sector to another is not well understood. Firm switchers are likely to be unique, differing from both newly establi...

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Main Authors:	Newman, Carol, Rand, John, Tarp, Finn
Format:	Journal Article
Language:	en_US
Published:	Oxford University Press on behalf of the World Bank 2014
Subjects:	productivity collusion deregulation development economics diversification enterprise reform firm size foreign direct investment foreign enterprises private enterprises productivity growth small firms Small and medium enterprises state enterprises technology diffusion trade liberalization
Online Access:	http://hdl.handle.net/10986/21014

id	okr-10986-21014
recordtype	oai_dc
spelling	okr-10986-210142021-04-23T14:04:01Z Industry Switching in Developing Countries Newman, Carol Rand, John Tarp, Finn productivity collusion deregulation development economics diversification enterprise reform firm size foreign direct investment foreign enterprises private enterprises productivity growth small firms Small and medium enterprises state enterprises technology diffusion trade liberalization Firm turnover (i.e., firm entry and exit) is a well-recognized source of sector-level productivity growth. In contrast, the role and importance of firms that switch activities from one sector to another is not well understood. Firm switchers are likely to be unique, differing from both newly established entrants and exiting firms that are closing down operations. In this study, we develop an empirical model that examines switching behavior using data from Vietnamese manufacturing firms during the 2001–2008 period. The diagnostic shows that switching firms exhibit different characteristics and behavior than do entry and exit firms. Switchers tend to be labor intensive and to seek competitive opportunities in labor-intensive sectors in response to changes in market environments. Moreover, resource reallocation resulting from switching forms an important component of productivity growth. The topic of switching merits attention in the future design of firm surveys across developing countries and in associated analytical studies. 2014-12-30T19:05:58Z 2014-12-30T19:05:58Z 2013-06 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/21014 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Vietnam
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	productivity collusion deregulation development economics diversification enterprise reform firm size foreign direct investment foreign enterprises private enterprises productivity growth small firms Small and medium enterprises state enterprises technology diffusion trade liberalization
spellingShingle	productivity collusion deregulation development economics diversification enterprise reform firm size foreign direct investment foreign enterprises private enterprises productivity growth small firms Small and medium enterprises state enterprises technology diffusion trade liberalization Newman, Carol Rand, John Tarp, Finn Industry Switching in Developing Countries
geographic_facet	Vietnam
description	Firm turnover (i.e., firm entry and exit) is a well-recognized source of sector-level productivity growth. In contrast, the role and importance of firms that switch activities from one sector to another is not well understood. Firm switchers are likely to be unique, differing from both newly established entrants and exiting firms that are closing down operations. In this study, we develop an empirical model that examines switching behavior using data from Vietnamese manufacturing firms during the 2001–2008 period. The diagnostic shows that switching firms exhibit different characteristics and behavior than do entry and exit firms. Switchers tend to be labor intensive and to seek competitive opportunities in labor-intensive sectors in response to changes in market environments. Moreover, resource reallocation resulting from switching forms an important component of productivity growth. The topic of switching merits attention in the future design of firm surveys across developing countries and in associated analytical studies.
format	Journal Article
author	Newman, Carol Rand, John Tarp, Finn
author_facet	Newman, Carol Rand, John Tarp, Finn
author_sort	Newman, Carol
title	Industry Switching in Developing Countries
title_short	Industry Switching in Developing Countries
title_full	Industry Switching in Developing Countries
title_fullStr	Industry Switching in Developing Countries
title_full_unstemmed	Industry Switching in Developing Countries
title_sort	industry switching in developing countries
publisher	Oxford University Press on behalf of the World Bank
publishDate	2014
url	http://hdl.handle.net/10986/21014
_version_	1764447720278327296

Industry Switching in Developing Countries

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