This paper discusses the effects of a set of regulatory restrictions on entry and growth imposed on Portuguese wool textile firms from 1965 to 1974. The main findings are as following: a) regulation had an impact on firm industry size distribution during the period, mainly through the effects on entry and growth; b) by the end of the period, predominance of small firms in the industry was mainly a result of small firm survival; c) the pattern of exits implied a decrease of the share of small firms in industry; d) different patterns of entry and exit were observed in different stages of production of the industry.
Small Business Economics – Springer Journals
Published: Oct 6, 2004
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