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Mind the Neighbors : The Impact of Productivity and Location on Firm Turnover

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dc.contributor.authorThompson, Fraser
dc.contributor.authorHallward-Driemeier, Mary
dc.date.accessioned2012-03-19T19:13:27Z
dc.date.available2012-03-19T19:13:27Z
dc.date.issued2009-10-01
dc.description.abstractThis paper examines the impact of firm productivity and local industrial structure on firm entry and exit in Morocco between 1985 and 2001. There is strong evidence of productivity exerting a market-cleansing role. Less productive firms are found to be more likely to exit - and locations with more productive firms attract higher rates of new firm entry. The effect of productivity operates not only in an absolute sense; a firm s relative productivity or distance to the local sector frontier matters too. First, large productivity gaps are associated with higher rates of exit, while new firms are attracted to locations with small productivity gaps. Second, local competition increases the probability of exit, although it does not encourage entry. Third, there is evidence of scale or agglomeration effects that increase firm turnover. Fourth, measures of sector diversity are not associated with lower turnover. Fifth, the geographic level at which agglomeration and competition effects are defined matters differently for exit than entry. For exit, the provincial measures are strong, while those for communes are weaker. For entry, it is the local productivity at the commune level that is more significant. This implies that competitive pressures are less geographically constrained while the potential benefits of agglomeration and spill-overs are indeed more local.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091031144309
dc.identifier.doi10.1596/1813-9450-5106
dc.identifier.urihttps://hdl.handle.net/10986/4294
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5106
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAGGLOMERATION EFFECTS
dc.subjectAGGREGATE PRODUCTIVITY
dc.subjectAGGREGATE PRODUCTIVITY GROWTH
dc.subjectAVERAGE PRODUCTIVITY
dc.subjectBOOK VALUE
dc.subjectBOUNDARIES
dc.subjectBUSINESS ENVIRONMENT
dc.subjectCASUAL WORKER
dc.subjectCASUAL WORKERS
dc.subjectCOMPETITIVE PRESSURES
dc.subjectCOMPETITORS
dc.subjectCORPORATION
dc.subjectCORPORATIONS
dc.subjectCREATIVE DESTRUCTION
dc.subjectCULTURAL CHANGE
dc.subjectDECISION-MAKING
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDISCOUNT RATE
dc.subjectDISCUSSION
dc.subjectDIVISION OF LABOR
dc.subjectDOWNSIZING
dc.subjectECONOMETRICS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC STRUCTURE
dc.subjectECONOMICS
dc.subjectECONOMIES OF SCALE
dc.subjectEMPLOYEE
dc.subjectEMPLOYMENT
dc.subjectENTREPRENEURS
dc.subjectENTRY RATE
dc.subjectEXIT EQUATIONS
dc.subjectEXPORT MARKETS
dc.subjectEXPORTS
dc.subjectEXTERNALITIES
dc.subjectFIRM DYNAMICS
dc.subjectFIRM ENTRY
dc.subjectFIRM EXIT
dc.subjectFIRM LEVEL
dc.subjectFIRM PERFORMANCE
dc.subjectFIRM PRODUCTIVITY
dc.subjectFIRM SIZE
dc.subjectFIRM SURVEY
dc.subjectFIRM SURVIVAL
dc.subjectFIRM TURNOVER
dc.subjectFIRMS
dc.subjectFORECASTS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN OWNERSHIP
dc.subjectFOREIGN PARTNERS
dc.subjectFUTURE RESEARCH
dc.subjectGROWTH RATE
dc.subjectHIGH WAGE
dc.subjectIDEAS
dc.subjectINNOVATION
dc.subjectINNOVATIONS
dc.subjectINSIGHTS
dc.subjectINTERNATIONAL TRADE
dc.subjectLABOR ECONOMICS
dc.subjectLABOR MARKETS
dc.subjectLABOUR
dc.subjectLABOUR MARKETS
dc.subjectLARGE ENTERPRISES
dc.subjectLEADING
dc.subjectLEARNING
dc.subjectMACROECONOMIC FLUCTUATIONS
dc.subjectMACROECONOMICS
dc.subjectMANUFACTURERS
dc.subjectMANUFACTURING ENTERPRISE
dc.subjectMANUFACTURING ESTABLISHMENTS
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectPECUNIARY EXTERNALITIES
dc.subjectPOLITICAL ECONOMY
dc.subjectPRIVATE SECTOR
dc.subjectPRODUCT INNOVATION
dc.subjectPRODUCT MARKETS
dc.subjectPRODUCTION FACILITIES
dc.subjectPRODUCTIVE FIRMS
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY EFFECTS
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPRODUCTIVITY LEVEL
dc.subjectPRODUCTIVITY LEVELS
dc.subjectPROFIT EXPECTATIONS
dc.subjectPROFITABILITY
dc.subjectPROPERTY RIGHTS
dc.subjectPROPORTIONAL HAZARD MODEL
dc.subjectPROPRIETORSHIP
dc.subjectSCALE EFFECT
dc.subjectSCALE EFFECTS
dc.subjectSMALL FIRM
dc.subjectSMALL FIRMS
dc.subjectSUNK COSTS
dc.subjectTELECOMMUNICATIONS
dc.subjectTEMPORARY WORKER
dc.subjectTEMPORARY WORKERS
dc.subjectTOTAL EMPLOYMENT
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTOTAL WORKERS
dc.subjectTRADE LIBERALIZATION
dc.subjectWAGES
dc.subjectWEALTH
dc.titleMind the Neighbors : The Impact of Productivity and Location on Firm Turnoveren
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleMind The Neighbors : The Impact Of Productivity And Location On Firm Turnover
okr.date.doiregistration2025-04-10T12:01:43.127758Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091031144309
okr.globalpracticeSocial Protection and Labor
okr.guid471231468152711369
okr.identifier.doi10.1596/1813-9450-5106
okr.identifier.externaldocumentum000158349_20091031144309
okr.identifier.internaldocumentum11291555
okr.identifier.reportWPS5106
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/10/31/000158349_20091031144309/Rendered/PDF/WPS5106.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.sectorIndustry and trade :: General industry and trade sector
okr.themeEconomic management :: Analysis of economic growth
okr.topicSocial Protections and Labor::Labor Policies
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication67f85769-f3f3-56bb-8609-d63125a35e32
relation.isAuthorOfPublication.latestForDiscovery67f85769-f3f3-56bb-8609-d63125a35e32
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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