Location and Survival of New Entry

Georgios Fotopoulos and Helen Louri

Small Business Economics, 2000, vol. 14, issue 4, 21 pages

Abstract: Drawing from two different strands of literature, industrial ecology and spatial analysis, the paper attempts to examine the role that location plays in determining firm survival. A time-varying covariates hazard model is used on Greek firms, which enter manufacturing in the early 1980s and are followed up to 1992. Location in Greater Athens vs. the rest of the country affects survival positively, especially when smaller firms are concerned. Other firm variables such as current size, profitability, leverage and capital together with growth and industry contestability are also found to affect survival, which becomes more difficult for firms established closer to recessions. Copyright 2000 by Kluwer Academic Publishers

Date: 2000
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