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. . Of the Fittest? Duration of Survival of Manufacturing Establishments in a Developing Country

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  • Behrman, Jere R
  • Deolalikar, Anil B

Abstract

Over half the establishments for which reasonably complete data were collected in the 1975 Indonesian Medium and Large Scale Manufacturing Survey did not survive until the 1986 Survey. This paper explores what observed characteristics of these establishments in 1975 predict the duration of survival over the 1975-85 period. Two-limit Tobit estimates of the years surveyed indicate that the establishments with higher survival durations were typically older and larger; were located in more concentrated industries; and had larger foreign shares, proportionately fewer family workers, a larger share of their electricity own-produced, and a higher ratio of gifts and donations to value added. Copyright 1989 by Blackwell Publishing Ltd.

Suggested Citation

  • Behrman, Jere R & Deolalikar, Anil B, 1989. " . . Of the Fittest? Duration of Survival of Manufacturing Establishments in a Developing Country," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 215-226, December.
    • Handle: RePEc:bla:jindec:v:38:y:1989:i:2:p:215-26
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    Cited by:

    1. Nafziger, E. Wayne & Terrell, Dek, 1996. "Entrepreneurial human capital and the long-run survival of firms in India," World Development, Elsevier, vol. 24(4), pages 689-696, April.
    2. Brown, Drusilla & Dehejia, Rajeev & Robertson, Raymond, 2016. "Laws, Costs, Norms, and Learning: Improving Working Conditions in Developing Countries," IZA Discussion Papers 10025, Institute of Labor Economics (IZA).
    3. Julien Hanoteau & Virginie Vial, 2020. "Institutional quality, conforming and evasive entrepreneurship," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(1), pages 97-121, March.
    4. Julien Hanoteau & Virginie Vial, 2014. "Grease or sand the wheel? The effects of individual bribe payments on aggregate productivity growth," EcoMod2014 6685, EcoMod.
    5. A Staines, 2005. "'Double trouble': the growth of small and medium-sized enterprises in small states," Working Papers 574157, Lancaster University Management School, Economics Department.
    6. Raymond Robertson & Drusilla Brown & Rajeev Dehejia, 2021. "Working conditions and factory survival: Evidence from better factories Cambodia," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 228-254, February.
    7. Julien Hanoteau & Gandhi Pawitan & Virginie Vial, 2021. "Does social capital reduce entrepreneurs' petty corruption? Evidence across Indonesian regions," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 651-670, June.
    8. Tain-Jy Chen & Grace Wu, 1996. "Determinants of divestment of FDI in Taiwan," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(1), pages 172-184, March.
    9. Irfan Kurniawan & Riyanto, 2020. "Should I Bribe? Re-Examining the Greasing-the-Wheels Hypothesis in Democratic Post-Soeharto Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 66, pages 123-140, Desember.
    10. repec:ekd:006356:6689 is not listed on IDEAS
    11. Varum, Celeste & Rocha, Vera Catarina & Valente da Silva, Hélder, 2014. "Economic slowdowns, hazard rates and foreign ownership," International Business Review, Elsevier, vol. 23(4), pages 761-773.
    12. Vial, Virginie & Hanoteau, Julien, 2010. "Corruption, Manufacturing Plant Growth, and the Asian Paradox: Indonesian Evidence," World Development, Elsevier, vol. 38(5), pages 693-705, May.

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