Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2000-11-10
Number: 00-095/3
Author-Name: D.B. Audretsch
Author-Workplace-Name: Indiana University
Author-Name: M.A. Carree
Author-Email: carree@few.eur.nl
Author-Workplace-Name: Erasmus University Rotterdam, Maastricht University, and EIM Business and Policy Research, Zoetermeer
Author-Name: A.J. van Stel
Author-Email: vanstel@few.eur.nl
Author-Workplace-Name: Erasmus University
Author-Name: A.R. Thurik
Author-Email: thurik@few.eur.nl
Author-Workplace-Name: Erasmus University, and EIM Business and Policy Research, Zoetermeer
Title: Impeded Industrial Restructuring: The Growth Penalty
Abstract: This paper documents that a process of industrial restructuring has been transforming the developed economies, where large corporations are accounting for less economic activity and small firms are accounting for a greatershare of economic activity. Not all countries, however, are experiencing the same shift in their industrial structures. Very little is known about the cost of resisting this restructuring process. The goal of this paper is to identifywhether there is a cost, measured in terms of forgone growth, of an impeded restructuring process. The cost is measured by linking growth rates of European countries to deviations from the optimal industrial structure. Theempirical evidence suggests that countries impeding the restructuring process pay a penalty in terms of forgone growth.
Classification-JEL: O11; L11
Keywords: Industry structure; firm size distribution; entrepreneurship; economic growth
File-Url: https://papers.tinbergen.nl/00095.pdf
File-Format: application/pdf
File-Size: 86234 bytes
Handle: RePEc:tin:wpaper:20000095