An analysis of new firm survival using a hazard function

Stone, I.; Hunt, A.; Holmes, P.R.

Abstract

A unique data set is used to provide a detailed examination of the survival of newly established manufacturing firms in north-east England. Using data on 781 firms established between 1973 and 2001, log-logistic hazard models are estimated separately for (i) micro-enterprises and (ii) small and medium establishments (SMEs). Both micro-enterprises and SMEs show clear evidence of positive duration dependence, followed by negative duration dependence. We find the two firm types are differentially affected by firm-specific and macro-economic variables. Increases in initial plant size impact negatively on micro-enterprise survival and positively on SME survival.

Citation

Stone, I., Hunt, A., & Holmes, P. (2010). An analysis of new firm survival using a hazard function. Applied Economics, 42(2), 185-195. https://doi.org/10.1080/00036840701579234

• Journal Article Type: Article
• Publication Date: Jan 1, 2010
• Deposit Date: Jun 18, 2008
• Journal: Applied Economics
• Print ISSN: 0003-6846
• Electronic ISSN: 1466-4283
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 42
• Issue: 2
• Pages: 185-195
• DOI: https://doi.org/10.1080/00036840701579234
• Public URL: https://durham-repository.worktribe.com/output/1540803