This paper analyses the role played by both competitive pressure (increasing
imports) and the restructuring of industries through entry and exit in productivity
growth of Spanish manufacturing during the eighties, the key period of
its accession to the EEC This paper analyses the role played by both competitive pressure (increasing
imports) and the restructuring of industries through entry and exit in productivity
growth of Spanish manufacturing during the eighties, the key period of
its accession to the EEC economy. A GMM panel estimation of the determinants
of corrected Solow residual for 75 manufacturing during 1979–1990, shows that
these forces accounted for 80% of productivity growth, playing an important role the displacement of inefficient firms by competitive entry.[+][-]
