Investigação em Curso
 

Does Schumpeterian Creative Destruction Lead to Higher Productivity? The effects of firms' entry (com Paulino Teixeira)

Abstract: This paper discusses the role played by newly created firms in the productivity growth of both incumbent firms and whole industry. Our central hypothesis is that there are two potential effects of new firms on productivity growth: the direct one, through relative more productive firms entering and, the indirect effect, via both an increase in competitive pressure over established firms and the replacement of low-productivity firms. The results of the decomposition exercise of aggregate productivity growth suggest that the direct contribution of entry is very limited. However, it is also shown that the exiting effect is positive and sizeable. Finally, we carried out that greater competition induced by entry of new firms generate a sizeable pressure over continuing firms to perform well and then higher industry productivity. In addition, the study describes the pattern of entry and exit among industries.
Keywords: Entry, Productivity growth, Competition effect
JEL classification: L25, O12, O47, L16, L60.

How much do small firms matter? Evidence from the dynamic role of Portuguese firms
Abstract: This paper provides an empirical assessment of the dynamic role of small and medium firms (SMEs) in the Portuguese economy. From a static point of view, there is a positive correlation between firm size and productivity. However, the greatest contribution of small firms is dynamic in nature: they are agents of change, source of innovation and stimulate industry evolution. The results show that SMEs are important sources of job creation and productivity growth.
Keywords: Small firms. SME. Productivity growth. Manufacturing and services industries.
JEL classification: L11, L25, L60, L80, O47.

Financial constraints: Are there differences between manufacturing and services? (com Filipe Silva)

Abstract: Financial constraints appear to be a pivotal element that shapes the dynamics of firms. Therefore, the recent shortage of financial resources raises new interest on the impact that such constraints have on firms. Much has been said with respect to the manufacturing sector, however there is a lack of research on the services sector. This paper, by testing the importance of financial distress between sectors and industries, greatly contributes to a better understanding of both the heterogeneity of services industries and the role of financial constraints upon firm dynamics and structural change. For that purpose, we resort to the estimation of sensitivities of cash holdings to cash-flow upon a large unbalanced panel of Portuguese manufacturing and services firms. Our results clearly show that: (a) firms in Portugal are generally financially distressed; (b) services firms are more financially constrained than manufacturing firms; (c) differences on the severity of financial constraints are larger within than between services and manufacturing sectors; (d) by firms' characteristics, the patterns of constraints observed for services are distinct from those of manufacturing and the overall sample.
Keywords: Services; Financial constraints; Firm-level studies; Portugal.
JEL Classification: L8; D92; G32; L00; L2.

Última actualização em 13-01-2012.