Long run relationship between entry and exit: time series evidence from Turkish manufacturing industry

Date

2006-12-01

Author

Soytaş, Uğur

Metadata

Show full item record

Item Usage Stats

181
views

1
downloads

This paper investigates the long run relationship between entry and exit using aggregate annual data from the Turkish manufacturing industry for the period 1968-2001. The time series properties of the data imply that simple OLS regressions may yield spurious results. We employ both bivariate and multivariate models to test for Granger causality. Utilizing relatively new time series techniques, we find that exit Granger causes entry in the long run, but not vice versa. However, unlike many empirical findings in the literature, past exit has a negative effect on entry. Entrants seem to be put off by past exit in the long run. Hence, our results do not seem to support the replacement effect in the Turkish manufacturing industry in general. None of the other variables included in the multivariate analysis has significant effects on entry or exit. The generalized impulse responses between entry and exit confirm Granger causality results.

URI

https://hdl.handle.net/11511/87698
https://open.metu.edu.tr/bitstream/handle/11511/87698/index.pdf

Journal

Economics Bulletin

Collections

Department of Business Administration, Article

Suggestions

OpenMETU
Core

Heterogeneous Effects of Financial Indicators on Firms' Exports: Evidence from Turkish Manufacturing Firms Şahin, Yavuz Selim; Akbostancı Özkazanç, Elif; Department of Economics (2022-12-21) Using an extensive firm-level database that combines customs and balance sheets data, this paper investigates the heterogeneity in the effects of financial indicators on the exports of Turkish manufacturing firms. The panel data estimations for the period 2010-2020 suggest that improvement in the firm-level financial indicators have stimulating effects on the firms’ exports. More specifically, it is found that profitability and liquidity ratios are positively associated with firms’ exports, while increases ...
Real exchange rates and job flows: evidence from Turkey Dogan, Ergun; İslam, Muhammed Qamarul; Yazici, Mehmet (2018-01-01) This study investigates the effects of the real exchange rate on job flows in Turkish manufacturing industries between 2006 and 2015 using data at the four-digit NACE Revision 2 level. Using dynamic panel data models, we find that a real appreciation increases gross and net job creation rates, and that the effect of appreciation is magnified as the exposure to international competitiveness of industries increases. We think that this is because Turkish manufacturing firms import a greater share of their inpu...
Modeling Firm Population Dynamics: An Application to the Turkish Manufacturing Industry for the 1950-2000 Period. Soytaş, Uğur (2009-12-01) This paper examines the population dynamics of Turkish manufacturing firms using annual data on the aggregate industry over the period 1950-2000. Among the four models considered, the density dependence model seems to provide the best fit. This model is extended for further examination. One interesting finding is that business cycles do not play a role in determining changes in firm numbers in the industry. The number of firms is negatively influenced by average number of employees; however, it does not app...
OUTPUT-EMPLOYMENT RELATIONSHIP ACROSS SECTORS: A LONG- VERSUS SHORT-RUN PERSPECTIVE ŞAHİN, AFŞİN; Tansel, Aysıt; BERUMENT, MAHMUT HAKAN (2015-07-01) This paper investigates the nature of the output-employment relationship by using the Turkish quarterly data for the period 1988-2008. Even if we fail to find a long-run relationship between aggregate output and total employment, there are long-run relationships for the aggregate output with non-agricultural employment and sectoral employment levels for seven of nine sectors that we consider. However, a further investigation for the output and employment relationship within a short-run perspective does not ...
Field characterisation of weathered Ankara andesites Paşamehmetoğlu, A. Günhan (Elsevier BV, 1997-3) This paper presents held and some index properties of weathered Ankara andesites, carried out over a period of 4 years. Ankara andesites are distributed widely around the city of Ankara, on which numerous important structures have been founded. Thus, the weathering characteristics of Ankara andesites, both from the engineering geological and the rock mechanics points of view are important. The held work involved assessment of the rock mass weathering grades, conduction of simple field tests, Schmidt hammer ...

Citation Formats

U. Soytaş, “Long run relationship between entry and exit: time series evidence from Turkish manufacturing industry,” Economics Bulletin, pp. 0–0, 2006, Accessed: 00, 2021. [Online]. Available: https://hdl.handle.net/11511/87698.