Live Or Let Die? Alternative Routes to Industry Exit

University of Nottingham Research Paper No. 2007/10

36 Pages Posted: 15 Feb 2007

See all articles by David Greenaway

David Greenaway

University of Nottingham - School of Economics

Joakim Gullstrand

Lund University - School of Economics and Management

Richard Kneller

University of Nottingham

Date Written: 2007

Abstract

Each year around 8 per cent of Swedish manufacturing firms leave an industry. Of the exit routes available, the least likely is firm closure. Firms are more likely to merge, become acquired or switch to a new industry. We investigate the importance of various firm and industry characteristics for the exit decision of Swedish firms from 1980-1996. From our analysis two patterns are evident. First, firms that close down appear to be the most distinct compared to those that remain within the sector. Second the same characteristic can have quite different associations with the different types of exit.

Keywords: Firm exit, productivity, resource reallocation

JEL Classification: L10, L21, L25, L60

Suggested Citation

Greenaway, David and Gullstrand, Joakim and Kneller, Richard, Live Or Let Die? Alternative Routes to Industry Exit (2007). Available at SSRN: https://ssrn.com/abstract=962849 or http://dx.doi.org/10.2139/ssrn.962849

David Greenaway (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 951 5469 (Phone)
+44 115 951 4159 (Fax)

Joakim Gullstrand

Lund University - School of Economics and Management ( email )

Tycho Brahes väg 1,
S-220 07 Lund, 223 63
Sweden

Richard Kneller

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

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