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Accounting for Net Entry into Greek Manufacturing by Establishments of Varying Size

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  • Fotopoulos, Georgios
  • Spence, Nigel

Abstract

Adopting the view that size matters in understanding entry (exit) patterns, this research explores the nature and causes of net entry patterns of various size-defined groups of establishments in the case of a less industrialised country--Greece. The hypothesis to be tested is that the determinants of entry are not independent of firm size. Throughout this paper the analysis has had to confront difficulties arising from the use of net entry rates defined at the size class level. The degree of size disaggregation used in this paper is considerably finer than used before. Five employment-defined size classes have been used instead of sliding cut-off points discriminating between small and large firms. Unlike other research using pooled models to explain variation in entry (exit) rates across industries, the data used here are characterised by the absence of significant industry-specific systematic variation. Overall, the results obtained in this paper indicate that there is a gradation in the responses of different size classes to stimuli defined at the industry level. Evidence is offered that small firms are different in that they manage to overcome entry barriers, perhaps adopting different survival strategies, and that large firms are well aware of market conditions and are in an advantageous position to overcome many of the problems imposed by entry barriers. Size classes in the middle of the size class distribution offer a rather mixed result due to size-related advantages and disadvantages. Copyright 1998 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 11 (1998)
Issue (Month): 2 (September)
Pages: 125-44

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Handle: RePEc:kap:sbusec:v:11:y:1998:i:2:p:125-44

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Web page: http://www.springerlink.com/link.asp?id=100338

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Cited by:
  1. Fotopoulos, Georgios & Spence, Nigel, 1999. "Net entry behaviour in Greek manufacturing: consumer, intermediate and capital goods industries," International Journal of Industrial Organization, Elsevier, vol. 17(8), pages 1219-1230, November.
  2. Arauzo Carod, Josep Maria & Segarra Blasco, Agustí, 2004. "The Determinants of Entry are not Independent of Start-up Size: Some evidence from Spanish manufacturing," Working Papers 2072/1775, Universitat Rovira i Virgili, Department of Economics.
  3. Calá, Carla Daniela & Manjón Antolín, Miguel C. & Arauzo Carod, Josep Maria, 2014. "The Determinants of Exit in Argentina: Core and Peripheral Regions," Working Papers 2072/225299, Universitat Rovira i Virgili, Department of Economics.
  4. Lefilleur, Julien & Maurel, Mathilde, 2010. "Inter- and intra-industry linkages as a determinant of FDI in Central and Eastern Europe," Economic Systems, Elsevier, vol. 34(3), pages 309-330, September.
  5. Secil Kaya & Yesim Üçdogruk, 2002. "The dynamics of entry and exit in turkish manufacturing industry," ERC Working Papers 0202, ERC - Economic Research Center, Middle East Technical University, revised Feb 2002.
  6. Barbara Roberts & Steve Thompson, 2003. "Entry and Exit in a Transition Economy: The Case of Poland," Review of Industrial Organization, Springer, vol. 22(3), pages 225-243, May.

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