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Firm Performance and Selection in an emerging Economy: Micro Evidence from Slovenia

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Author Info

  • Konings, Jozef

    (Katholieke Universiteit Leuven)

  • Ana Xavier

Abstract

We investigate the determinants of firm survival and growth (employment and sales), in the context of transition from plan to market, using firm data from Slovenia spanning from 1994 to 1998 and OLS and Heckman selection models. Firm and industry pre-transition conditions including size, ownership, financial constraints, trade and market structure are used to understand what firms best performed in the Slovenian transition. Small, private, exporting and capital intensive firms grew the fastest. Large firms with positive profits and higher sunk costs were more likely to survive compare to firms with harder financial constraints, high costs or trading abroad.

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File URL: http://repec.org/res2003/Konings.pdf
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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 127.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:127

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Keywords: firm growth and survival; owndership; competition; financial constraints;

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Cited by:
  1. Ghosh, Saibal, 2009. "Do productivity and ownership really matter for growth? Firm-level evidence," Economic Modelling, Elsevier, vol. 26(6), pages 1403-1413, November.
  2. Stefan Buehler & Christian Kaiser & Franz Jaeger, 2004. "Competition Policy and Exit Rates: Evidence from Switzerland," SOI - Working Papers 0405, Socioeconomic Institute - University of Zurich, revised Apr 2005.

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