Review of Industrial Organization

, Volume 26, Issue 3, pp 349–370 | Cite as

Industry Dynamics in the Swedish Textile and Wearing Apparel Sector

  • Joakim Gullstrand
Original paper


This paper analyses the adjustment process within the Swedish textile and wearing apparel sector and finds results that support the notion of Schumpeter’s ‘creative’ destruction. The turnover of plants and jobs seems to ‘improve’ the industries from within due to an exit (entry) of less (more) productive plants, exit (entry) of old (new) incumbents, a destruction (creation) of less (more) human-capital intensive jobs, and a supply of new products on the world market. The econometric analysis of the probability of exit with plant, firm and industry characteristics supports the idea of a rationalisation from within.


creative destruction entry exit import competition plant level. 

JEL Classifications

F1 D2 


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Copyright information

© Kluwer Academic Publishers 2005

Authors and Affiliations

  1. 1.Department of EconomicsLund UniversityLundSweden

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