Market Selection Along the Firm Life Cycle

Posted: 4 Aug 2008

See all articles by Flora Bellone

Flora Bellone

GREDEG-CNRS ; ISEM-University of Nice-Sophia-Antipolis

Patrick Musso

Université de Nice Sophia Antipolis - Groupe de Recherche en Droit, Economie et Gestion (GREDEG)

Lionel Nesta

University of Sussex

Michel Quéré

affiliation not provided to SSRN

Date Written: August 2008

Abstract

This article analyses market selection in French manufacturing in the nineties. It argues that the determinants of firm survival have different effects depending on firm age. Results show that exiting firms display low levels of profitability and productivity. This selection process is more severe for young firms because industry structures favor the survival of mature firms. Concerning the latter, markets select against persistent bad performers, not against temporary losses of efficiency. These results reveal the presence of barriers to firm growth not to entry as an important driver of industry dynamics.

Suggested Citation

Bellone, Flora and Musso, Patrick and Nesta, Lionel and Quéré, Michel, Market Selection Along the Firm Life Cycle (August 2008). Industrial and Corporate Change, Vol. 17, Issue 4, pp. 753-777, 2008, Available at SSRN: https://ssrn.com/abstract=1194048 or http://dx.doi.org/dtn025

Flora Bellone (Contact Author)

GREDEG-CNRS ( email )

250 rue Albert Einstein
Sophia-Antipolis, 06560
France
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HOME PAGE: http://hp.gredeg.cnrs.fr/Flora_Bellone/

ISEM-University of Nice-Sophia-Antipolis ( email )

Campus Saint-jean d'Angely 24 av des diables Bleu
Nice, 06050
France

HOME PAGE: http://unice.fr/isem

Patrick Musso

Université de Nice Sophia Antipolis - Groupe de Recherche en Droit, Economie et Gestion (GREDEG) ( email )

250, rue Albert Einstein
Valbonne, 06560
France

Lionel Nesta

University of Sussex ( email )

Sussex House
Falmer
Brighton, Sussex BNI 9RH
United Kingdom

Michel Quéré

affiliation not provided to SSRN

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