Abstract.
This paper analyses the role played by both competitive pressure (increasing imports) and the restructuring of industries through entry and exit in productivity growth of Spanish manufacturing during the eighties, the key period of its accession to the EEC economy. A GMM panel estimation of the determinants of corrected Solow residual for 75 manufacturing during 1979-1990, shows that these forces accounted for 80% of productivity growth, playing an important role the displacement of inefficient firms by competitive entry.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Author information
Authors and Affiliations
Corresponding author
Additional information
JEL Classification:
D24, C33
We are grateful to S. Bentolila, F. Bourguignon, T. Coelli, J. Dolado, A. de la Fuente, J. García, L. Rodríguez, J. Segura, X. Vives and an anonymous referee for useful comments on previous versions of this paper. All remaining errors are our own.
Rights and permissions
About this article
Cite this article
Martín-Marcos, A., Jaumandreu, J. Entry, exit and productivity growth: Spanish manufacturing during the eighties. Spanish Economic Review 6, 211–226 (2004). https://doi.org/10.1007/s10108-004-0079-1
Issue Date:
DOI: https://doi.org/10.1007/s10108-004-0079-1