ENTRY AND TYPE OF ENTRANT - EVIDENCE FROM PORTUGAL

This paper presents an overview of the importance of entry in Portuguese manufacturing, according to the type of entrant, and investigates its determinants, it being found that they differ according to the pre-entry position of the potential entrant. We found that de novo entry is sensitive to most entry barriers, and even deterred by entry of firms established in the industry or in related industries. The plant creation decision of these latter firms is affected by economies of scale: they refrain from opening new establishments when economies of scale are important, since they can expand output within their installed plants.