An analysis of new firm survival using a hazard function
Authors: Holmes, P.; Hunt, A.; Stone, I.
Source: Applied Economics, Volume 42, Number 2, January 2010 , pp. 185-195(11)
Abstract:A unique data set is used to provide a detailed examination of the survival of newly established manufacturing firms in north-east England. Using data on 781 firms established between 1973 and 2001, log-logistic hazard models are estimated separately for (i) micro-enterprises and (ii) small and medium establishments (SMEs). Both micro-enterprises and SMEs show clear evidence of positive duration dependence, followed by negative duration dependence. We find the two firm types are differentially affected by firm-specific and macro-economic variables. Increases in initial plant size impact negatively on micro-enterprise survival and positively on SME survival.
Document Type: Research Article
Affiliations: School of Economics, Finance and Business, University of Durham, Durham, DH1 3HY, United Kingdom
Publication date: January 1, 2010