Firm entry rates have slumped and those that do enter are larger

2021 ◽  
Keyword(s):  
Firm Entry

scholarly journals Environmental Regulation and Exports: Evidence from the Comprehensive Air Pollution Policy in China

2021 ◽  
Vol 18 (3) ◽  
pp. 1316 ◽  
Author(s):  
Hong Chen ◽  
Yang Xu
Keyword(s):  
Air Pollution ◽  
Environmental Regulation ◽  
Pollution Prevention ◽  
Firm Entry ◽  
Entry And Exit ◽  
Control Plan ◽  
Heterogeneous Effects ◽  
The Impact ◽  
The City ◽  
Firm Entry And Exit

The impact of environmental regulation has been an important topic. Based on the Chinese Custom Database and China City Statistical Yearbook, this paper investigates the effect of environmental regulation on export values and explores potential mechanisms and heterogeneous effects. Taking advantage of China’s first comprehensive air pollution prevention and control plan, the Air Pollution Control in Key Zones policy, as a quasi-natural experiment, we employ the difference-in-differences method to examine the causal relationship between environmental regulation and exports. We find the statistically significant and negative effect of environmental regulation on exports at the city level. Moreover, we find that the potential mechanism is the change in export values caused by firm entry and exit, especially by exiters, rather than the change in the number of exporting firms in the city caused by firm entry and exit. In addition, we find the heterogeneous effects of environmental regulation based on the differences of environmental policy across cities and the Broad Economic Categories classification.

ENERGY IN A MODEL OF FIRM ENTRY

2018 ◽  
Vol 24 (2) ◽  
pp. 231-254
Author(s):  
Soma Patra
Keyword(s):  
Negative Impact ◽  
The United States ◽  
Energy Price ◽  
Firm Entry ◽  
Energy Prices ◽  
Dsge Model ◽  
Price Shocks ◽  
Firm Level ◽  
Dynamic Stochastic ◽  
The Impact

Nine out of the last ten recessions in the United States have been preceded by an increase in the price of oil as noted by Hamilton [Palgrave Dictionary of Economics]. Given the small share of energy in gross domestic product this phenomenon is difficult to explain using standard models. In this paper, I show that firm entry can be an important transmission and amplifying channel for energy price shocks. The results from the baseline dynamic stochastic general equilibrium (DSGE) model predict a drop in output that is two times the impact in a model without entry. The model also predicts an increase in energy prices would lead to a decline in real wages, investment, consumption, and return on investment. Additionally, using US firm level data, I demonstrate that a rise in energy prices has a negative impact on firm entry as predicted by the DSGE model. This lends further support toward endogenizing firm entry when analyzing the effects of energy price shocks.

scholarly journals The Economic Impact of New Firms in Punjab

2015 ◽  
Vol 20 (Sspecial Edition) ◽  
pp. 143-182
Author(s):  
Azam Chaudhry ◽  
Maryiam Haroon
Keyword(s):  
Empirical Evidence ◽  
Positive Impact ◽  
Socioeconomic Impact ◽  
Firm Entry ◽  
New Firms ◽  
Socioeconomic Outcomes ◽  
Different Types ◽  
New Firm ◽  
New Firm Entry ◽  
Over Time

Despite the consensus that new firms have a significant economic and socioeconomic impact, there is very little empirical evidence to support this claim in the Pakistani context. In this paper, we start by looking at how new firm entry varies across districts in Punjab over time. We then look at how the establishment of different types of firms across these districts has affected district-level socioeconomic outcomes in the province. We find that firm entry has a positive impact on economic outcomes such as employment and enrollment, and that this impact can vary by the scale of the firms that enter.

scholarly journals Subsidizing firm entry in open economies

2013 ◽  
Vol 97 ◽  
pp. 258-271 ◽  
Author(s):  
Michael Pflüger ◽  
Jens Suedekum
Keyword(s):  
Open Economies ◽  
Firm Entry

scholarly journals ENDOGENOUS FIRM ENTRY IN AN ESTIMATED MODEL OF THE U.S. BUSINESS CYCLE

2017 ◽  
Vol 23 (1) ◽  
pp. 284-321 ◽  
Author(s):  
Sven Offick ◽  
Roland C. Winkler
Keyword(s):  
Business Cycle ◽  
Minor Role ◽  
Firm Entry ◽  
Variety Effect ◽  
Amplification Mechanism ◽  
Business Cycle Model ◽  
A Minor ◽  
The U.S ◽  
Real Business Cycle Model

A recent theoretical literature highlights the role of endogenous firm entry as an internal amplification mechanism of business cycle fluctuations. The amplification mechanism works through the competition effect (CE) and the variety effect (VE). This paper tests the significance of this amplification mechanism, quantifies its importance, and disentangles the CE and VE. To this end, we estimate a medium-scale real business cycle model with firm entry for the U.S. economy. The CE and VE are estimated to be statistically significant. Together, they amplify the volatility of output by 8.5% relative to a model in which both effects are switched off. The CE accounts for most amplification, whereas the VE only plays a minor role.

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