Selection dynamics in the manufacturing industry during the crisis years: some evidences based on microdata

Marco Mariani (), Elena Pirani () and Elena Radicchi ()
Additional contact information
Elena Pirani: Istituto Regionale per la Programmazione Economica della Toscana
Elena Radicchi: University of Florence

No 361, Studi e approfondimenti from Istituto Regionale per la Programmazione Economica della Toscana

Abstract: The economic crisis of the late 2000s has led many manufacturing companies to exit the market, due to poor performance or financial difficulties. The purpose of this study is to analyze which characteristics, both static and dynamic, play a role in the shaping of the firms’ exit decision. For this goal, we apply survival analysis techniques to an Italian regional case study, Tuscany, accounting for features of the firms observed both before and during the early years of the crisis. Our findings evidence that the selection process hits companies belonging to supplier-dominated sectors and industrial districts and, more in general, firms that before the crisis were already characterized by a low level of productivity or a poor overall efficiency. Results also suggest that lack of liquidity and inability to cover interest expenses are likely to bring to the exit during the crisis.

Keywords: business demography; survival; economic crisis (search for similar items in EconPapers)
JEL-codes: C41 G33 L25 L60 M21 (search for similar items in EconPapers)
Date: 2012-02
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.irpet.it/storage/pubblicazioneallegato/ ... _Pirani_Radicchi.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.irpet.it/storage/pubblicazioneallegato/361_Working%20paper%20Mariani_Pirani_Radicchi.pdf [301 Moved Permanently]--> https://www.irpet.it/storage/pubblicazioneallegato/361_Working%20paper%20Mariani_Pirani_Radicchi.pdf)

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:irp:essays:361

Access Statistics for this paper

More papers in Studi e approfondimenti from Istituto Regionale per la Programmazione Economica della Toscana Contact information at EDIRC.
Bibliographic data for series maintained by Stefania Salvucci ( this e-mail address is bad, please contact ).