Mind the Neighbors : The Impact of Productivity and Location on Firm Turnover
This paper examines the impact of firm productivity and local industrial structure on firm entry and exit in Morocco between 1985 and 2001. There is strong evidence of productivity exerting a market-cleansing role. Less productive firms are found t...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091031144309 http://hdl.handle.net/10986/4294 |
| id |
okr-10986-4294 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-42942021-04-23T14:02:17Z Mind the Neighbors : The Impact of Productivity and Location on Firm Turnover Hallward-Driemeier, Mary Thompson, Fraser ACCOUNTING AGGLOMERATION EFFECTS AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH AVERAGE PRODUCTIVITY BOOK VALUE BOUNDARIES BUSINESS ENVIRONMENT CASUAL WORKER CASUAL WORKERS COMPETITIVE PRESSURES COMPETITORS CORPORATION CORPORATIONS CREATIVE DESTRUCTION CULTURAL CHANGE DECISION-MAKING DEVELOPMENT ECONOMICS DISCOUNT RATE DISCUSSION DIVISION OF LABOR DOWNSIZING ECONOMETRICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC STRUCTURE ECONOMICS ECONOMIES OF SCALE EMPLOYEE EMPLOYMENT ENTREPRENEURS ENTRY RATE EXIT EQUATIONS EXPORT MARKETS EXPORTS EXTERNALITIES FIRM DYNAMICS FIRM ENTRY FIRM EXIT FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIRM SURVEY FIRM SURVIVAL FIRM TURNOVER FIRMS FORECASTS FOREIGN DIRECT INVESTMENT FOREIGN OWNERSHIP FOREIGN PARTNERS FUTURE RESEARCH GROWTH RATE HIGH WAGE IDEAS INNOVATION INNOVATIONS INSIGHTS INTERNATIONAL TRADE LABOR ECONOMICS LABOR MARKETS LABOUR LABOUR MARKETS LARGE ENTERPRISES LEADING LEARNING MACROECONOMIC FLUCTUATIONS MACROECONOMICS MANUFACTURERS MANUFACTURING ENTERPRISE MANUFACTURING ESTABLISHMENTS MONOPOLISTIC COMPETITION PECUNIARY EXTERNALITIES POLITICAL ECONOMY PRIVATE SECTOR PRODUCT INNOVATION PRODUCT MARKETS PRODUCTION FACILITIES PRODUCTIVE FIRMS PRODUCTIVITY PRODUCTIVITY EFFECTS PRODUCTIVITY GROWTH PRODUCTIVITY LEVEL PRODUCTIVITY LEVELS PROFIT EXPECTATIONS PROFITABILITY PROPERTY RIGHTS PROPORTIONAL HAZARD MODEL PROPRIETORSHIP SCALE EFFECT SCALE EFFECTS SMALL FIRM SMALL FIRMS SUNK COSTS TELECOMMUNICATIONS TEMPORARY WORKER TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL WORKERS TRADE LIBERALIZATION WAGES WEALTH This paper examines the impact of firm productivity and local industrial structure on firm entry and exit in Morocco between 1985 and 2001. There is strong evidence of productivity exerting a market-cleansing role. Less productive firms are found to be more likely to exit - and locations with more productive firms attract higher rates of new firm entry. The effect of productivity operates not only in an absolute sense; a firm s relative productivity or distance to the local sector frontier matters too. First, large productivity gaps are associated with higher rates of exit, while new firms are attracted to locations with small productivity gaps. Second, local competition increases the probability of exit, although it does not encourage entry. Third, there is evidence of scale or agglomeration effects that increase firm turnover. Fourth, measures of sector diversity are not associated with lower turnover. Fifth, the geographic level at which agglomeration and competition effects are defined matters differently for exit than entry. For exit, the provincial measures are strong, while those for communes are weaker. For entry, it is the local productivity at the commune level that is more significant. This implies that competitive pressures are less geographically constrained while the potential benefits of agglomeration and spill-overs are indeed more local. 2012-03-19T19:13:27Z 2012-03-19T19:13:27Z 2009-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091031144309 http://hdl.handle.net/10986/4294 English Policy Research working paper ; no. WPS 5106 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING AGGLOMERATION EFFECTS AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH AVERAGE PRODUCTIVITY BOOK VALUE BOUNDARIES BUSINESS ENVIRONMENT CASUAL WORKER CASUAL WORKERS COMPETITIVE PRESSURES COMPETITORS CORPORATION CORPORATIONS CREATIVE DESTRUCTION CULTURAL CHANGE DECISION-MAKING DEVELOPMENT ECONOMICS DISCOUNT RATE DISCUSSION DIVISION OF LABOR DOWNSIZING ECONOMETRICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC STRUCTURE ECONOMICS ECONOMIES OF SCALE EMPLOYEE EMPLOYMENT ENTREPRENEURS ENTRY RATE EXIT EQUATIONS EXPORT MARKETS EXPORTS EXTERNALITIES FIRM DYNAMICS FIRM ENTRY FIRM EXIT FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIRM SURVEY FIRM SURVIVAL FIRM TURNOVER FIRMS FORECASTS FOREIGN DIRECT INVESTMENT FOREIGN OWNERSHIP FOREIGN PARTNERS FUTURE RESEARCH GROWTH RATE HIGH WAGE IDEAS INNOVATION INNOVATIONS INSIGHTS INTERNATIONAL TRADE LABOR ECONOMICS LABOR MARKETS LABOUR LABOUR MARKETS LARGE ENTERPRISES LEADING LEARNING MACROECONOMIC FLUCTUATIONS MACROECONOMICS MANUFACTURERS MANUFACTURING ENTERPRISE MANUFACTURING ESTABLISHMENTS MONOPOLISTIC COMPETITION PECUNIARY EXTERNALITIES POLITICAL ECONOMY PRIVATE SECTOR PRODUCT INNOVATION PRODUCT MARKETS PRODUCTION FACILITIES PRODUCTIVE FIRMS PRODUCTIVITY PRODUCTIVITY EFFECTS PRODUCTIVITY GROWTH PRODUCTIVITY LEVEL PRODUCTIVITY LEVELS PROFIT EXPECTATIONS PROFITABILITY PROPERTY RIGHTS PROPORTIONAL HAZARD MODEL PROPRIETORSHIP SCALE EFFECT SCALE EFFECTS SMALL FIRM SMALL FIRMS SUNK COSTS TELECOMMUNICATIONS TEMPORARY WORKER TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL WORKERS TRADE LIBERALIZATION WAGES WEALTH |
| spellingShingle |
ACCOUNTING AGGLOMERATION EFFECTS AGGREGATE PRODUCTIVITY AGGREGATE PRODUCTIVITY GROWTH AVERAGE PRODUCTIVITY BOOK VALUE BOUNDARIES BUSINESS ENVIRONMENT CASUAL WORKER CASUAL WORKERS COMPETITIVE PRESSURES COMPETITORS CORPORATION CORPORATIONS CREATIVE DESTRUCTION CULTURAL CHANGE DECISION-MAKING DEVELOPMENT ECONOMICS DISCOUNT RATE DISCUSSION DIVISION OF LABOR DOWNSIZING ECONOMETRICS ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC STRUCTURE ECONOMICS ECONOMIES OF SCALE EMPLOYEE EMPLOYMENT ENTREPRENEURS ENTRY RATE EXIT EQUATIONS EXPORT MARKETS EXPORTS EXTERNALITIES FIRM DYNAMICS FIRM ENTRY FIRM EXIT FIRM LEVEL FIRM PERFORMANCE FIRM PRODUCTIVITY FIRM SIZE FIRM SURVEY FIRM SURVIVAL FIRM TURNOVER FIRMS FORECASTS FOREIGN DIRECT INVESTMENT FOREIGN OWNERSHIP FOREIGN PARTNERS FUTURE RESEARCH GROWTH RATE HIGH WAGE IDEAS INNOVATION INNOVATIONS INSIGHTS INTERNATIONAL TRADE LABOR ECONOMICS LABOR MARKETS LABOUR LABOUR MARKETS LARGE ENTERPRISES LEADING LEARNING MACROECONOMIC FLUCTUATIONS MACROECONOMICS MANUFACTURERS MANUFACTURING ENTERPRISE MANUFACTURING ESTABLISHMENTS MONOPOLISTIC COMPETITION PECUNIARY EXTERNALITIES POLITICAL ECONOMY PRIVATE SECTOR PRODUCT INNOVATION PRODUCT MARKETS PRODUCTION FACILITIES PRODUCTIVE FIRMS PRODUCTIVITY PRODUCTIVITY EFFECTS PRODUCTIVITY GROWTH PRODUCTIVITY LEVEL PRODUCTIVITY LEVELS PROFIT EXPECTATIONS PROFITABILITY PROPERTY RIGHTS PROPORTIONAL HAZARD MODEL PROPRIETORSHIP SCALE EFFECT SCALE EFFECTS SMALL FIRM SMALL FIRMS SUNK COSTS TELECOMMUNICATIONS TEMPORARY WORKER TEMPORARY WORKERS TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL WORKERS TRADE LIBERALIZATION WAGES WEALTH Hallward-Driemeier, Mary Thompson, Fraser Mind the Neighbors : The Impact of Productivity and Location on Firm Turnover |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5106 |
| description |
This paper examines the impact of firm
productivity and local industrial structure on firm entry
and exit in Morocco between 1985 and 2001. There is strong
evidence of productivity exerting a market-cleansing role.
Less productive firms are found to be more likely to exit -
and locations with more productive firms attract higher
rates of new firm entry. The effect of productivity operates
not only in an absolute sense; a firm s relative
productivity or distance to the local sector frontier
matters too. First, large productivity gaps are associated
with higher rates of exit, while new firms are attracted to
locations with small productivity gaps. Second, local
competition increases the probability of exit, although it
does not encourage entry. Third, there is evidence of scale
or agglomeration effects that increase firm turnover.
Fourth, measures of sector diversity are not associated with
lower turnover. Fifth, the geographic level at which
agglomeration and competition effects are defined matters
differently for exit than entry. For exit, the provincial
measures are strong, while those for communes are weaker.
For entry, it is the local productivity at the commune level
that is more significant. This implies that competitive
pressures are less geographically constrained while the
potential benefits of agglomeration and spill-overs are
indeed more local. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Hallward-Driemeier, Mary Thompson, Fraser |
| author_facet |
Hallward-Driemeier, Mary Thompson, Fraser |
| author_sort |
Hallward-Driemeier, Mary |
| title |
Mind the Neighbors : The Impact of Productivity and Location on Firm Turnover |
| title_short |
Mind the Neighbors : The Impact of Productivity and Location on Firm Turnover |
| title_full |
Mind the Neighbors : The Impact of Productivity and Location on Firm Turnover |
| title_fullStr |
Mind the Neighbors : The Impact of Productivity and Location on Firm Turnover |
| title_full_unstemmed |
Mind the Neighbors : The Impact of Productivity and Location on Firm Turnover |
| title_sort |
mind the neighbors : the impact of productivity and location on firm turnover |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091031144309 http://hdl.handle.net/10986/4294 |
| _version_ |
1764390799703801856 |