Universal Journal of Industrial and Business Management Vol. 5(1), pp. 13 - 21
DOI: 10.13189/ujibm.2017.050103
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Deindustrialization: Entries and Exits in Declining Industries: The Greek Experience


Sormas Asterios *
Business Administration Department, Technological Educational Institute of Western Macedonia, Greece

ABSTRACT

Deindustrialization, a developed countries phenomenon, is a process where the industrial activity in a region or in an industrial sector is reduced due to economic or social change. Usually occurs because an industrial activity is no longer economically viable. Economists have made enormous efforts to understand the process of developing markets, but only a few studies have been published for the opposite. This research deals with the disinvestment, the decision making process ending to the market exit. The life cycle law applies in industries as the birth of an idea, to the development and peak and finally the death. Entries and exits in declining industries are interesting; approaching the determinants they dominate the economic decisions. In the introduction, the data derived from official authorities related to the Greek manufacturing industry for a period of twenty (20) years. The classification of all manufacturing sectors, based on certain criteria, leads to the sectors suffering the most from deindustrialization. The study is focusing in the 87 firms (almost all population) of the Textile Dyeing and Finishing sub-sector. An econometric model is built to test three (3) hypotheses and arrive into the conclusions of the determinants affecting entries and exits in the declining industry.

KEYWORDS
Declining Industries, Divestment

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Sormas Asterios , "Deindustrialization: Entries and Exits in Declining Industries: The Greek Experience," Universal Journal of Industrial and Business Management, Vol. 5, No. 1, pp. 13 - 21, 2017. DOI: 10.13189/ujibm.2017.050103.

(b). APA Format:
Sormas Asterios (2017). Deindustrialization: Entries and Exits in Declining Industries: The Greek Experience. Universal Journal of Industrial and Business Management, 5(1), 13 - 21. DOI: 10.13189/ujibm.2017.050103.