Market Selection Along the Firm Life Cycle
Posted: 4 Aug 2008
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: 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
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