Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 31821
Industrial Effects and Firm's Survival (Case Study: Iran- East Azarbaijan Province)

Authors: Ghaffar Tari


The aim of this paper is to investigate the effect of mean size of industry on survival of new firms in East-Azarbaijan province through 1981-2006 using hazard function. So the effect of two variables including mean employment of industry and mean capital of industry are investigated on firm's survival. The Industry & Mine Ministry database has used for data gathering and the data are analyzed using the semi-parametric cox regression model. The results of this study shows that there is a meaningful negative relationship between mean capital of industry and firm's survival, but the mean employment of industry has no meaningful effect on survival of new firms.

Keywords: Firm's Survival, Hazard Function, Mean Capital of Industry, Mean Employment of Industry.

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1148


[1] Z.J. Acs, B. Carlsson, and A.R. Thurik, Small Business in the Modern Economy, Basil Blackwell Publishers, Oxford, 1996.
[2] D.B. Audretsch, Innovation and Industry Evolution, MIT Press, Cambridge, 1995.
[3] D.B. Audretsch, "New Firm survival and Technological Regime", The review of Economics and Statistics, 1991,Vol. 73, No. 3, PP. 441-450.
[4] D. B. Audretsch, P. Houweling and A. R. Thurik (1997), "New-Firm Survival: Industry versus Firm Effects", discussionpapers/97063.pdf.
[5] D.B. Audretsch, and T. Mahmood, "New firm survival: new results using a hazard function", Review of Economics and Statistics, 1995, Vol. 77, No.1, PP. 97-103.
[6] D.B. Audretsch and J. Mata (eds.), "The post-entry performance of firms: Introduction", International Journal of Industrial Organization, 1995, 14, 413-419.
[7] D.B. Audretsch, E. Santarelli and M. Vivarelli, "Start-up size and industrial dynamics: some evidence from Italian manufacturing", International Journal of Industrial Organization, 1999, Vol. 17, PP. 965- 983.
[8] J.R. Baldwin, The Dynamics of Industrial Competition: A North American Perspective, Cambridge University Press, Cambridge, 1995.
[9] C.E. Bamford, T.J. Dean and P.P. McDougall, "An examination of founding conditions and decisions upon the performance of new bank start-ups", Journal of Business Venturing, 1999, 15, 253-277.
[10] H.P. Blossfeld and G. Rohwer, Techniques of Event History Modeling. 2nd ed., Lawrence Erlbaum Associates, Inc. 2002, pp. 4-37.
[11] W. Boeker, Organizational origins: entrepreneurial and environmental imprinting at the time of founding, In: Carrol, G.A., (Ed.), Ecological Models of Organizations, Ballinger Publishing Company, Cambridge, MA, 1988.
[12] W. Boeker, Strategic change: the effects of founding and history, Academy of Management Journal, 1989, 32(3), 489-515.
[13] E. Cefis and O. Marsili (2005), "A matter of life and Death:Innovation And firm Survival", Industrial and corporate change, vol. 14, No. 6, pp. 1167-1192.
[14] D.R. Cox, "Regression Models and Life Tables", Journal of the Royal Statistical Society, Series B, 1972, Vol. 34, No. 2, pp. 187-220.
[15] A. Dixit, "Entry and exit decisions under uncertainty", Journal of Political Economy, 1989, 97 (2), 620-638.
[16] M.J. Dollinger, Entrepreneurship: Strategies and Resources. Richard D. Irwin, Homewood, IL., 1999.
[17] M. Doms, T. Dunne, and M.J. Roberts, "The role of technology use in the survival and growth of manufacturing plants", International Journal of Industrial Organization, 1995, 13 (4), 523-542.
[18] P. Dunne and A. Hughes, "Age, size, growth and survival: UK companies in the 1980s", Journal of Industrial Economics, 1994, 42 (2), 115-140.
[19] T. Dunne, M.J. Roberts, and L. Samuelson, "Patterns of firm entry and exit in US manufacturing industries", Rand Journal of Economics, 1988, vol. 19, No. 4, PP. 495-515.
[20] D. Evans, "Tests of Alternative Theories of Firm Growth", Journal of Political Economy, 1987, 95, 657-674.
[21] B. Hall, "The relationship between firm size and firm growth in the US manufacturing sector", Journal of Industrial Economics, 1987, 36 (2), 583-606.
[22] M.T.Hannan, and J. Freeman, Organizational Ecology, Cambridge, MA: Harvard University Press, 1989.
[23] P. Holmes, I. Stone and P. Bradford, An Analysis of New Firm Survival using a Hazard Function, 1999.
[24] H. Hopenhayn," Entry, exit, and firm dynamics in long run equilibrium", Econometrica, 1992, 60 (5), 1127-1150.
[25] B. Jovanovic, "Selection and Evolution of Industry", Econometrica, 1982, vol. 50, PP. 649-670.
[26] M. Kato (2009), " Firm Survival and the Evolution of Market Structure: The Case of the Japanese Motorcycle Industry", http://gcoe.ier.hitu.
[27] N. Kiefer, "Economic duration data and hazard functions", Journal of EconomicLiterature, 1988, vol. 26, pp. 646- 679.
[28] T. Mahmood, "Survival of Newly Founded Businesses: A Log-Logistic Model Approach", Discussion Paper FS IV 97-32, Social Science Research Center, Berlin, 1997.
[29] J. Mata and P. Portugal, "Life Duration of New Firms", Journal of Industrial Economics, 1994, vol. 42, No. 3, PP. 227-246.
[30] J. Mata, P. Portugal and P. Guimaraes, "The survival of new plants: start-up conditions and post-entry evolution". International Journal of Industrial Organization, 1995,vol. 13, No. 4, pp. 459-482.
[31] D.C. Mueller, The Dynamics of Company Profits: An International Comparison.Cambridge University Press, Cambridge. 1990.
[32] J. Wagner (1994), The post- entry performance of new small firms in German manufacturing industries, Journal of industrial economics 42(2), p. 141-154.