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The Survival of New Domestic and Foreign Owned Firms

Pedro Portugal and José Mata ()

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: We compare the survival of new domestic and foreign owned firms. We analyze the determinants of the survival of new firms and investigate whether foreigness accounts for significant differences in the survival of new foreign and new domestic firms. We find survival to be determined by ownership advantages, size and growth strategies, the internal organization of firms, and by industry characteristics such as economies of scale, and industry entry and growth. After controlling for these characteristics, we find that domestic and foreign firms do not exhibit different chances of survival, that they respond in similar fashions to the determinants of survival and display identical time patterns of exit.

JEL-codes: D21 L10 L25 (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:ptu:wpaper:w200101

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