Pandemic crisis and firm survival: evidence from the Italian manufacturing industry

Eleonora Cutrini () and Federico Ninivaggi ()
Additional contact information
Eleonora Cutrini: University of Macerata
Federico Ninivaggi: University of Macerata

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2024, vol. 51, issue 2, No 3, 265-297

Abstract: Abstract The paper studies the characteristics that affected firms’ ability to react to the economic crisis induced by the COVID-19 pandemic. We use firm-level data on Italian manufacturing companies to examine the role played by external relations and the characteristics of the local environment. In line with recent works, the study finds that micro-firms, highly indebted and less productive firms have a higher probability of exiting the market. Results also support the view that digital presence and financial soundness have favoured the survival of enterprises. Beyond firm-specific factors, we highlight that a firm’s resilience capability is related to its external linkages, namely the participation in a group or to a network contact. As for local ecosystem factors, while firms in industrial districts have a higher default probability, our results suggest that an innovative local environment can slightly mitigate the probability of permanently closing during the crisis.

Keywords: Firm survival; IDs; Innovative environment; Digitalization; Small firms; COVID-19; Italy (search for similar items in EconPapers)
JEL-codes: D22 G33 L22 L25 O14 O30 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40812-024-00309-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:epolin:v:51:y:2024:i:2:d:10.1007_s40812-024-00309-0

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40812

DOI: 10.1007/s40812-024-00309-0

Access Statistics for this article

Economia e Politica Industriale: Journal of Industrial and Business Economics is currently edited by C. Cambini, M.G. Colombo, L. Piscitello, L. Rondi and A. Zanfei

More articles in Economia e Politica Industriale: Journal of Industrial and Business Economics from Springer, Associazione Amici di Economia e Politica Industriale
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().