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Age and productivity as determinants of firm survival over the product life cycle

Listed author(s):
  • Silviano Esteve Pérez

    (Department of Applied Economics II, Universitat de València)

  • Fabio Pieri

    (Department of Applied Economics, Universitat de València)

  • Diego Rodriguez

    (Department of Applied Economics II, Universidad Complutense de Madrid)

This paper contributes to fill the gap between the literature on the determinants of firm survival and the theoretical and empirical works on the product life cycle (PLC). Using a representative sample of Spanish manufacturing firms with ten or more employees over the period 1991-2010, we empirically analyze the role played by firm age and productivity on firm survival across three different phases of the PLC to which firms are allocated according to firm- and product-level haracteristics. Firm age results to be negatively and significantly correlated with hazard rates mostly in the ‘young’ phase of the PLC, pointing out the role of ‘learning processes’ in this phase, while firm productivity is associated with lower hazard rates only in the ‘old’ phase of the PLC when market competition is primarily efficiency-driven. Our results qualify the roles of age and productivity as determinants of firm survival.

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File URL: ftp://147.156.210.157/RePEc/pdf/eec_1502.pdf
File Function: First version, 2015
Download Restriction: no

Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1502.

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Date of creation: Apr 2015
Handle: RePEc:eec:wpaper:1502
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