The evolution of new firm's characteristics in Greece before and during the economic adjustment programmes

Nikolaos Vettas (), Evangelia Velavanioti, Konstantinos Peppas and Michail Vasileiadis
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Nikolaos Vettas: Foundation for Economic and Industrial Research (IOBE), Athens University of Economics and Business, and Centre for Economic Policy Research, UK
Evangelia Velavanioti: Foundation for Economic and Industrial Research (IOBE)
Konstantinos Peppas: Foundation for Economic and Industrial Research (IOBE)
Michail Vasileiadis: Foundation for Economic and Industrial Research (IOBE)

Economic Bulletin, 2019, issue 50, 67-109

Abstract: This paper examines the factors that affect new firms’ survival, growth and export decisions in Greece. Using firm-level data for the 2000-2016 period and the appropriate econometric techniques and performing separate estimations for the pre-crisis and the post-crisis periods (2000- 2007 and 2008-2016), we obtain a number of novel results. The survival estimations highlight the importance of producing technologically advanced and high value-added products that can be competitive in foreign markets and the significance of the regulatory framework under which new firms are established and grow, as well as the central role of bank financing. The estimations of a firm growth model indicate that small, high-leveraged new firms, with poor liquidity, operating in high concentration markets and facing increased credit cost, grow more slowly, although differences in these results are found between the pre-crisis period (2000-2007) and the total period. More experienced firms, as well as those with sufficient liquidity and access to bank finance, have a higher probability to export. The same holds for those firms which are located in large urban areas and are active in knowledge or ICT intensive sectors.

Keywords: new firms; survival; entry; exit; firm growth; firm age; firm size; Cox Proportional Hazard Model; Probit Model; Logit Model; Panel Data Fixed Effects Model (search for similar items in EconPapers)
JEL-codes: C23 C25 C26 C41 L11 L25 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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