Recent studies show that the likelihood of survival differs significantly across firms. Both firm and industry characteristics are hypothesized to account for this heterogenity. Using a longitudinal database of manufacturing firms we investigate whether firm or industry characteristics dominate. Our evidence suggests that both firm- and industry-specific characteristics shape new-firm survival during the first years subsequent to entry. However, in the longer run, most of the industry factors have little influence on the likelihood of survival, but firm-specific characteristics still exert a considerable influence in shaping firm survival rates.

exit, manufacturing industries, survival
Market Structure, Firm Strategy, and Market Performance (jel L1)
Tinbergen Institute Discussion Paper Series
Tinbergen Institute

Audretsch, D.B, Houweling, P, & Thurik, A.R. (1997). New Firm Survival: Industry versus Firm Effects (No. TI 97-063/3). Tinbergen Institute Discussion Paper Series. Retrieved from