ENTRY INTO DANISH MANUFACTURING-INDUSTRIE S

In recent years much attention has been paid to entry studies within i ndustrial organisation research. Thus, high firm mobility secures that resources move towards the most productive industries, and the threat from potential entrants can restrain the incumbents from exploiting t heir market power; as well as forcing them to be cost effective. The e ntry behaviour of Danish firms is analysed in the empirical part of th e paper. Market growth is found to induce entry, whereas minimum capit al requirement and efficient plant size have the opposite effect An ab ove normal profit proves to have only a weak effect on entry rates in the Danish manufacturing industries.