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The Survival of New Domestic and Foreign Owned Firms

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  • José Mata
  • Pedro Portugal

Abstract

We compare the survival of new domestic and foreign owned firms. We analyze the determinants of the survival of new firms and investigate whether foreigness accounts for significant differences in the survival of new foreign and new domestic firms. We find survival to be determined by ownership advantages, size and growth strategies, the internal organization of firms, and by industry characteristics such as economies of scale, and industry entry and growth. After controlling for these characteristics, we find that domestic and foreign firms do not exhibit different chances of survival, that they respond in similar fashions to the determinants of survival and display identical time patterns of exit.

Suggested Citation

  • José Mata & Pedro Portugal, 2001. "The Survival of New Domestic and Foreign Owned Firms," Working Papers w200101, Banco de Portugal, Economics and Research Department.
  • Handle: RePEc:ptu:wpaper:w200101
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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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