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The Cyclical Dynamics of Industries in West Germany - Testing the Industry Life Cycle Hypothesis

MPS-Authors
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Dorner,  Matthias
MPI for Innovation and Competition, Max Planck Society;

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http://www.uni-marburg.de/fb19/fachgebiete/wirtschaftsgeographie/wps_ag/archiv_evoec/2015/2015_05.pdf
(Preprint)

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Citation

Brenner, T., & Dorner, M. (2015). The Cyclical Dynamics of Industries in West Germany - Testing the Industry Life Cycle Hypothesis. Papers on Economics & Evolution, 1505.


Cite as: https://hdl.handle.net/11858/00-001M-0000-002A-373F-9
Abstract
We test the industry life cycle hypothesis for 205 industries in West Germany between 1976 and 2009. In particular we analyse whether population indicators follow a cyclical path. Using a novel non-linear regression approach to identify life cycles we find that the number of establishments, employees, entries and exits follow in most industries a path that is well represented by at least a part of a cycle. Most industries that show cyclical behaviour run (partially) through their life cycle in the considered time period.