AN ANALYSIS OF NEW FIRM SURVIVAL USING A HAZARD FUNCTION.

Phil Holmes (1) , Andrew John Hunt (2) , Ian Stone (1)

1 School of Economics, Finance and Business
2 School of Economics, Finance and Business

A unique dataset 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 macroeconomic variables. Increases in initial plant size impact negatively on micro-enterprise survival and positively on SME survival.

Mots clés: Social Sciences & Humanities

Phil Holmes, Andrew John Hunt, Ian Stone. AN ANALYSIS OF NEW FIRM SURVIVAL USING A HAZARD FUNCTION.. Applied Economics, 2009, 42 (02), pp.185-195. ⟨10.1080/00036840701579234⟩. ⟨hal-00582145⟩