... Of the Fittest? Duration of Survival of Manufacturing Establishments in a Developing Country

Jere Behrman and Anil Deolalikar ()

Journal of Industrial Economics, 1989, vol. 38, issue 2, 215-26

Abstract: Over half the establishments for which reasonably complete data were collected in the 1975 Indonesian Medium and Large Scale Manufacturing Survey did not survive until the 1986 Survey. This paper explores what observed characteristics of these establishments in 1975 predict the duration of survival over the 1975-85 period. Two-limit Tobit estimates of the years surveyed indicate that the establishments with higher survival durations were typically older and larger; were located in more concentrated industries; and had larger foreign shares, proportionately fewer family workers, a larger share of their electricity own-produced, and a higher ratio of gifts and donations to value added. Copyright 1989 by Blackwell Publishing Ltd.

Date: 1989
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