CREACIóN Y DESTRUCCIóN DE EMPRESAS EN CHILE

in this paper we describe the pattern of creation and destruction of chilean firms between 1999 and 2006. in addition, we construct transition matrices among differentfirm sizes based on tax information. it has to be noted that the available datafor this study isprobably the closest to what could be considered as the chilean population of formal firms. this is one ofthe major strengths of thispapen by using an econometric panel data model, wefound thatpnoductive sectons with the langest economies ofscale show the lowest entnance nales. at the same time, the macnoeconomic envinonment pnoxied by gdp gnowth and unemployment nales do has an impact on the exit but not on entnance figunes. but, langely what has happened in lagged exit nales dinectly affects contemponany entnance nales. thenefone, public policies shouldbe awane about those who want to nestant new finms nathen than concentnate too much on maintaining those which ane notably unpnoductive.