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Determinants of firm start-up size in the Brazilian industry: an empirical investigation

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  • Marcelo Resende

Abstract

The article investigates the determinants of newly created industrial establishments in Brazil in 1997 taking as reference explanatory variables referring to market structure and industry dynamics, stronger effects are detected for larger firms. Minimum efficient scale, industry size, industry growth and turbulence display the expected positive effects on firm size, but the intensity of those are more pronounced for larger firms. The suboptimal scale variable, on the other hand, exhibits a counterintuitive positive effect and perhaps other types of barriers to entry that are not related to scale aspects may be important in the Brazilian case.

Suggested Citation

  • Marcelo Resende, 2007. "Determinants of firm start-up size in the Brazilian industry: an empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 39(8), pages 1053-1058.
  • Handle: RePEc:taf:applec:v:39:y:2007:i:8:p:1053-1058
    DOI: 10.1080/00036840500461998
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    Cited by:

    1. Alex Coad & Julian Frankish & Paul Nightingale & Richard Roberts, 2014. "Business experience and start-up size: Buying more lottery tickets next time around?," Small Business Economics, Springer, vol. 43(3), pages 529-547, October.
    2. Gottschalk, Sandra & Müller, Kathrin & Niefert, Michaela, 2009. "Founder's human capital, entry strategies and start-up size," ZEW Discussion Papers 09-030, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Bruno De Paula Rocha & Márcio Issao Nakane, 2011. "Entries, Exits And The Resourceallocation: An Analysis Of The Banking Intermediation In Brazil," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 092, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    4. Seyit Cilasun & Burak Günalp, 2012. "An Empirical Analysis of the Average Plant Start-Up Size in Turkish Manufacturing Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(4), pages 273-289, June.
    5. repec:zbw:zewexp:161820 is not listed on IDEAS

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