Competition Policy and Exit Rates : Evidence from Switzerland
Journal
Contributions to Economic Analysis and Policy
ISSN-Digital
1538-0645
Type
journal article
Date Issued
2005-11-24
Author(s)
Abstract
This paper provides evidence on the relation between the intensity of product-market competition and the probability of exit. We adopt a natural experiment approach to analyze the impact of a tightening of Swiss antitrust legislation on exit probabilities. Based on a sample of more than 68,000 firms from all major sectors of the Swiss economy, we find that the exit probability of non-exporting firms increased significantly, whereas the exit probability of exporting firms remained largely unaffected. Our results support the notion that there is a positive relationship between the intensity of product-market competition and the probability of exit.
Language
English
HSG Classification
contribution to scientific community
Refereed
No
Publisher
De Gruyter
Publisher place
Berlin
Volume
4
Number
1
Start page
1
End page
30
Pages
30
Subject(s)
Eprints ID
51400