As the market churns: productivity and firm exit in developing countries
| Autor: | David C. Francis, Gemechu A. Aga |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Selection bias
Economics and Econometrics Entrepreneurship Labour economics media_common.quotation_subject 05 social sciences Developing country General Business Management and Accounting Barriers to exit Bankruptcy Negative relationship 0502 economics and business Economics Openness to experience 050207 economics Productivity 050205 econometrics media_common |
| Zdroj: | Small Business Economics. 49:379-403 |
| ISSN: | 1573-0913 0921-898X |
| DOI: | 10.1007/s11187-016-9817-7 |
| Popis: | This paper uses a unique dataset from the World Bank’s Enterprise Surveys in 47 economies to analyze the conditions under which firms leave heterogeneous markets. Consistent with expectations, we show that firm productivity (and age) are significant determinants of firm exit. Cross-country analysis shows, however, that the relationship between productivity as well as age and exit is mitigated by some country-level factors. In particular, we show either’s effect is substantially weakened in low-income economies, economies with limited openness to international trade, and in economies with cumbersome bankruptcy procedures. To address issues of sample attrition and selection bias presented by survey-based estimates, corrections are applied using information when a firm’s operating status is uncertain. The expected negative relationship between firm labor productivity and the likelihood of exit is robust to these corrections, as is the negative relationship between firm exit and age. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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