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Determinants of Survival of Newly Created SMEs in the Brazilian Manufacturing: An Econometric Study

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  • Luis Otávio Facanha
  • Marcelo Resende
  • Vicente Cardoso
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    Abstract

    The paper investigates the survival of newly created small and medium enterprises in Brazilian manufacturing taking as reference the 1996-2005 period. The econometric analysis relies on time-varying version of the proportional hazard rate model that controls for unobserved heterogeneity. The evidence mostly corroborates previous findings for developed countries. Salient results include the positive role played by firm size, industry size and industry growth on survival and yet the negative influence exerted by industrial concentration and entry rate.

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    File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2012/wp-cesifo-2012-02/cesifo1_wp3735.pdf
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    Bibliographic Info

    Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3735.

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    Date of creation: 2012
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    Handle: RePEc:ces:ceswps:_3735

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    Related research

    Keywords: survival; small and medium enterprises; manufacturing industry;

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    1. Harhoff, Dietmar & Stahl, Konrad O. & Woywode, Michael, 1996. "Legal Form, Growth and Exit of West German Firms - Empirical Results for Manufacturing, Construction, Trade and Service Industries," CEPR Discussion Papers 1401, C.E.P.R. Discussion Papers.
    2. David Audretsch & Patrick Houweling & A. Thurik, 2000. "Firm Survival in the Netherlands," Review of Industrial Organization, Springer, vol. 16(1), pages 1-11, February.
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