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Foreign presence, technical efficiency and firm survival in Greece: a simultaneous equation model with latent variables approach

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  • Louri, Helen
  • Peppas, Costas
  • Tsionas, Efthymios

Abstract

The aim of the paper is to explain the role that technical efficiency and foreign spillover effects have on firm survival. Panel data from Greek manufacturing industry (3142 firms) in 1997-2003 are used. Technical efficiency is estimated through a CES translog production function. A hazard function is then used (corresponding to the Exponential and Weibull distributions as well as the Cox model) to estimate survival probabilities. While foreign spillovers exercise a positive impact on hazard, foreign firms do not have any distinctive survival advantage compared to their domestic rivals. On the contrary, technical efficiency affects hazard in a negative way, improving survival expectations.

Suggested Citation

  • Louri, Helen & Peppas, Costas & Tsionas, Efthymios, 2006. "Foreign presence, technical efficiency and firm survival in Greece: a simultaneous equation model with latent variables approach," MPRA Paper 29274, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:29274
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    Cited by:

    1. Ari Kokko & Tran Toan Thang, 2014. "Foreign Direct Investment and the Survival of Domestic Private Firms in Viet Nam," Asian Development Review, MIT Press, vol. 31(1), pages 53-91, March.
    2. Constantina Backinezos & Stelios Panagiotou & Athina Rentifi, 2019. "Greek export performance: a constant market share analysis," Economic Bulletin, Bank of Greece, issue 50, pages 45-65, December.
    3. Christos Genakos & Ioannis Kaplanis & Maria Theano Tagaraki & Aggelos Tsakanikas, 2023. "Firm Resilience and Growth during the Economics Crisis: lessons from the Greek depression," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 186, Hellenic Observatory, LSE.
    4. Nikos Vettas & Evangelia Velavanioti & Konstantinos Peppas & Michail Vasileiadis, 2019. "The evolution of new firm's characteristics in Greece before and during the economic adjustment programmes," Economic Bulletin, Bank of Greece, issue 50, pages 67-109, December.
    5. Heather D. Gibson & Georgia Pavlou & Christina Tsochatzi & Melina Vasardani, 2019. "Greece's integration into global value chains," Economic Bulletin, Bank of Greece, issue 50, pages 7-44, December.
    6. Christos, Genakos & Kaplanis, Ioannis & Tagaraki, Maria Theano & Tsakanikas, Aggelos, 2023. "Firm resilience and growth during the economics crisis: lessons from the Greek depression," LSE Research Online Documents on Economics 119705, London School of Economics and Political Science, LSE Library.
    7. Faidon Kalfaoglou, 2019. "Cryptoassets: potential implications for financial stability," Economic Bulletin, Bank of Greece, issue 50, pages 111-134, December.

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    More about this item

    Keywords

    foreign firms; technical efficiency; firm survival;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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