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Survival chances of new businesses: do regional conditions matter?

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  • Oliver Falck

Abstract

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.

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  • Oliver Falck, 2007. "Survival chances of new businesses: do regional conditions matter?," Applied Economics, Taylor & Francis Journals, vol. 39(16), pages 2039-2048.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:16:p:2039-2048
    DOI: 10.1080/00036840600749615
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    1. Andrew B. Bernard & Fredrik Sjoholm, 2003. "Foreign Owners and Plant Survival," NBER Working Papers 10039, National Bureau of Economic Research, Inc.
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