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| Author: | Behrman, J. R. Deolalikar, A. B. |
| Title: | Of the fittest? Duration of survival of manufacturing establishments in a developing country. |
| Journal: | Journal of Industrial Economics
1989 : DEC, VOL. 38:2, p. 215-226 |
| Index terms: | MANUFACTURING INDUSTRY DEVELOPING COUNTRIES COMPANY FAILURES |
| Language: | eng |
| Abstract: | Over half the establishments for which reasonably complete data were collected in the Indonesian Medium and Large Scale Manufacturing Survey did not survive until the 1986 Survey. The question of how establishments' characteristics and choices at one point in time predict the duration of their survival into the future is addressed. Two-limit Tobit estimates of the years survived indicate that the establishments with higher survival duration were typically older and large; in more concentrated industries; with larger foreign shares; proportionately fewer family workers; a larger share of their electricity own-produced; and a higher ratio of gifts and donations to value added. The lack of clear casual relationships is a barrier to policy recommendations. |
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