The Determinants of Entry Rates into U.S. Manufacturing Industries

Entry and exit rates are examined across a fairly large sample of 4-digit U.S. manufacturing industries. Market growth significantly increases (reduces) entry (exit) rates. Profits increase entry rates. Advertising clearly acts as an entry barrier. Sunk capital costs seem to deter exit. While entry and exit rates are related in the sample, whether they are simultaneously determined is unclear.

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	Rosenbaum, David I Professor of Economics Expertise: Antitrust Managerial Economics Public Utilities Economics CBA 360 P.O. Box 880489 University of Nebraska-Lincoln Lincoln, NE 68588-0489, USA Phone: (402) 472-2318 Fax: (402) 472-9700 drosenbaum1@unl.edu	Rosenbaum, David I	Economics