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A life cycle analysis of Hunan's enterprises and their determinants

Listed author(s):
  • Chen, Xiaohong
  • Cao, Yu
  • Wang, Fuqiang
Registered author(s):

    Using the life table method, we analyzed in this paper the survival of enterprises that were established from 1980 to 2007 in the Hunan province. Based on the quantile indicators, the average remaining firm lifespan in the specified period of time and the average survival time during a specific period of time, we conducted a comparative study using enterprises associated with different cities, industries, capital sizes, types of ownership and periods of establishment. The results show that there are great differences in firm survival that correlate with differences in city affiliation, industry, capital size, ownership type and period of establishment. Survival of Chinese enterprises is affected not only by the location of the business, the industry and the capital scale, which are usual players in the classical theory of industrial organization, but also by the nature of ownership and the time of establishment, which are determined by China's national context.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1043-951X(10)00044-1
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    Article provided by Elsevier in its journal China Economic Review.

    Volume (Year): 21 (2010)
    Issue (Month): 3 (September)
    Pages: 470-481

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    Handle: RePEc:eee:chieco:v:21:y:2010:i:3:p:470-481
    Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

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    1. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-245, September.
    2. Audretsch, David B., 1995. "Innovation, growth and survival," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 441-457, December.
    3. Audretsch, David & Vivarelli, Marco, 1995. "New-firm formation in Italy: A first report," Economics Letters, Elsevier, vol. 48(1), pages 77-81, April.
    4. Levinthal, D.A. & Fichman, M., 1991. "Honeymoons and the Liability of Adolescence : A New Perspective on Duration Dependence in Social Organizational Relationships," GSIA Working Papers 1991-34, Carnegie Mellon University, Tepper School of Business.
    5. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, July.
    6. Rafik Abdesselam & Jean Bonnet & Nicolas Le Pape, 2004. "An Explanation of the Life Span of New French Firms," Small Business Economics, Springer, vol. 23(3), pages 237-254, October.
    7. Fotopoulos, Georgios & Louri, Helen, 2000. "Location and Survival of New Entry," Small Business Economics, Springer, vol. 14(4), pages 311-321, June.
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