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Growth and Failure of Manufacturing Establishments in Australia

Jeff Borland () and Richard Home

Australian Economic Papers, 1996, vol. 35, issue 67, 334-47

Abstract: This study examines the determinants of failure and employment growth for manufacturing establishments in Australia between 1984 and 1985. For the sample of all establishments which operated in 1984, initial size of establishment is found to be inversely related to the probability of establishment failure and positively related to the establishment-level rate of employment growth. However, excluding establishments which ceased operation between 1984 and 1985, no relation exists between size of establishment and employment growth. These findings indicate the importance of sample selection for studies of the determinants of establishment-level employment growth. Industry sector does not appear to have a strong effect on failure or on employment growth of establishments. Copyright 1996 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Date: 1996
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