Taymaz, Erol [Department of Economics, Middle East Technical University, Ankara Turkey] and Miyase Y. Köksal [Department of Economics, Göteborg University, SE 405 30 Göteborg, Sweden]
Revised version will be published in a special issue of the Basque Economics Journal Ekonomiaz on “Entrepreneurship and Competitiveness”, 2006
Firm demography has received considerable attention in recent years. There are numerous theoretical and empirical studies that shed light on the dynamics of firm survival and growth. These studies show that new firms start small, small firms are less likely to survive, and small firms grow faster conditional on their survival. These stylized facts on firm dynamics triggered the examination of determinants of survival. The studies in the literature treat start-up size as exogenous to survival....
