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The effect of industry, region, and time on new business survival - A multi-dimensional analysis

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  • Brixy, Udo
  • Falck, Oliver
  • Fritsch, Michael

Abstract

We analyze the effect of industry, region, and time on new businesssurvival rates by means of a multi-dimensional approach. The data relateto West German districts in the 1983-2000 period. The survival chancesof start-ups tend to be relatively low in industries characterized by ahigh minimum efficient size and high numbers of entries. We find thatregional characteristics play a rather important role and thatintroducing the regional dimension leads to considerable improvements ofthe estimation results. The significance of the regional dimension isalso reflected in a remarkably high level of neighborhood effects.

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Bibliographic Info

Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 20195.

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Date of creation: 2006
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Publication status: Published in Review of Industrial Organization 3 28(2006): pp. 285-306
Handle: RePEc:lmu:muenar:20195

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  18. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-45, September.
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