The determinants of business failures in the US low-technology and high-technology industries

Jo-Hui Chen and Martin Williams

Applied Economics, 1999, vol. 31, issue 12, 1551-1563

Abstract: This study investigates the determinants of business failure rates for low-technology and high-technology manufacturing industries across the forty-eight contiguous US states over the period 1984 to 1993. The main focus is on examining the role that some key state fiscal measures and federal transfer grants to states play in explaining business failure rates. It is found that regional variations in sales taxes, highway expenditures, bank loans, university R&D, patents, and outstanding debt play a statistically significant role in explaining variations in regional business failure rates. Interestingly, it is found that corporate development assistance programmes and small business loans tend to improve small business survival rates for hightechnology industries but they do not for low-technology industries. Findings also suggest that policymakers can effectively use local/regional policy instruments to bring the current business failure rates to the desired level more easily within hightechnology industry groups than within low-technology industry groups.

Date: 1999
References: View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/000368499323076 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:31:y:1999:i:12:p:1551-1563

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/000368499323076

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().