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- W2316181777 abstract "The most common measure of entry used in studies attempting to empirically identify the determinants of entry has been the change in the number of firms in an industry over a given period.' This measure suffers from three significant deficiencies which, although widely acknowledged, have not all been overcome in any one study. First, the change in the number of firms does not account for firms which exited the industry over the relevant period, resulting in a measure of net entry rather than the desired measure of gross entry.2 Second, the entry measure is weighted by the number of firms, or in several cases plants, but not by either the sales or employment of the entrants.3 However, the implicit assumption that each unit of entry is homogeneous is obviously erroneous. 1982, 590 U.S. manufacturing firms with more than 5,000 employees accounted for 64.5 percent of sales, while 354,268 firms with fewer than 100 employees accounted for only 12 percent of sales.4 While most entry is by small firms, the entry by one large firm can more than offset (in terms of sales) the entry of hundreds of small firms. Thus, inter-industry comparisons based on firm numbers obscure differences resulting from the different sizes of entering firms. Finally, the data constraints have not enabled any study to examine the entry behavior for various firm-size classes across manufacturing industries. As Gorecki [13, 139] observed, In published statistical studies of the determinants of entry, entrants have been treated as a homogeneous class. fact, there is little reason to assume that small-firm entry is an exact replica of" @default.
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- W2316181777 date "1989-10-01" @default.
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- W2316181777 title "Births and Firm Size" @default.
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- W2316181777 doi "https://doi.org/10.2307/1059223" @default.
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