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The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis

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  • Michael Fritsch

    ()

  • Udo Brixy
  • Oliver Falck

Abstract

We analyze the effect of industry, region, and time on new business survival rates by means of a multi-dimensional approach. The data relate to West German districts in the 1983–2000 period. The survival chances of start-ups tend to be relatively low in industries characterized by a high minimum efficient size and high numbers of entries. We find that regional characteristics play a rather important role and that introducing the regional dimension leads to considerable improvements of the estimation results. The significance of the regional dimension is also reflected in a remarkably high level of neighborhood effects. Copyright Springer 2006

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File URL: http://hdl.handle.net/10.1007/s11151-006-0018-4
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Bibliographic Info

Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 28 (2006)
Issue (Month): 3 (05)
Pages: 285-306

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Handle: RePEc:kap:revind:v:28:y:2006:i:3:p:285-306

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Web page: http://www.springerlink.com/link.asp?id=100336

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Keywords: Entry; hazard; market selection; new firm survival; D21; L10; M13; R10;

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  16. Boeri, Tito & Bellmann, Lutz, 1995. "Post-entry behaviour and the cycle: Evidence from Germany," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 483-500, December.
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