Firm Entry and Exit and Aggregate Growth

Abstract

Using data from Chile and Korea, we find that a larger fraction of aggregate productivity growth is due to firm entry and exit during fast-growth episodes compared to slow-growth episodes. Studies of other countries confirm this empirical relationship. We develop a model of endogenous firm entry and exit based on Hopenhayn (1992). Firms enter with efficiencies drawn from a distribution whose mean grows over time. After entering, a firm's efficiency grows with age. In the calibrated model, reducing entry costs or barriers to technology adoption generates the pattern we document in the data. Firm turnover is crucial for rapid productivity growth.

The spatial dimension of productivity in Italian co-operatives

“…The OECD relies on Orbis to derive its harmonised OECD-Orbis database of firm-level Multi-Factor Productivity, inputs and outputs (Gal, 2013[36]), which is used in many OECD publications (OECD, 2015 [37]; Andrews, Criscuolo and Gal, 2015 [38]; Andrews, Criscuolo and Gal, 2016 [39]). The role of capital is accounted for through the firms reported value of EBITDA (Earnings before interest, taxes, depreciation, and amortisation).…”

“…Structural differences in factor payments compared to other firms resulted de facto in a shorter depreciation period for cooperatives and, therefore, a lower tax benefit compared to other firms the investment being equal. After consultations between the Italian government and the national business associations, including cooperative representatives, 38 the incentive has been turned into a tax credit since 2020, ensuring an equal treatment of all firms irrespective of their legal form.…”

“…The analysis of productivity indicators suggests that the average productivity of co-operatives varies greatly across the Italian economy. In some regions and sectors, it exceeds the productivity of non-co-operative 36 See Council Recommendation of 20 September 2016 on the establishment of National Productivity Boards: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32016H0924%2801%29 37 See National Productivity Boards webpage, EU Commission: https://ec.europa.eu/info/business-economyeuro/economic-and-fiscal-policy-coordination/national-productivity-boards_de (lastly accessed on 3 December 2020) 38 ACI web site: https://www.alleanzacooperative.it/l-alleanza/digitalizzazione-ed-economia-circolare-nelle-impresecooperative-il-12-aprile-evento-organizzato-dal-mise.html.…”

La dimensione territoriale della produttività nelle cooperative italiane

“…Produttività multifattoriale L'OCSE utilizza Orbis come fonte per ricavare il suo database armonizzato OCSE-Orbis di produttività multifattoriale a livello di impresa, input e output (Gal, 2013[36]), citato in molte pubblicazioni dell'OCSE (OECD, 2015 [37]; Andrews, Criscuolo and Gal, 2015 [38]; Andrews, Criscuolo and Gal, 2016 [39]). Il ruolo del capitale è contabilizzato attraverso il valore riportato dalle imprese in termini di EBITDA (Earnings before interest, taxes, depreciation, and amortisation).…”

“…Differenze strutturali nelle modalità di remunerazione dei fattori comportavano de facto un periodo di ammortamento più breve per le cooperative e, quindi, un minor beneficio fiscale rispetto alle altre imprese a parità di investimento eleggibile. Dopo le consultazioni tra il governo e le associazioni imprenditoriali nazionali, compresi i rappresentanti delle cooperative, 38 l'incentivo è stato trasformato in un credito d'imposta a partire dal 2020, garantendo un trattamento equo a tutte le imprese indipendentemente dalla loro forma giuridica.…”