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Survival chances of new businesses: do regional conditions matter?

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This article analyses the effects of industry-, regional- and firm-level characteristics on the post-entry performance of new businesses by means of an econometric survival time model. First preference is given to an accelerated failure time model assuming a log-logistic distribution. The data involve a representative sample of businesses in the private sector of West Germany during 1993 to 2002 period. The results demonstrate that the regional dimension is most important; whereas firm-level characteristics play a subordinated role.

Document Type: Research Article


Affiliations: Ifo Institute for Economic Research and CESifo Poschingerstr, Germany

Publication date: September 1, 2007

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