This website uses cookies to ensure you have the best experience. Learn more

Determinants Of Survival Of Newly Created Sm Es In The Brazilian Manufacturing Industry: An Econometric Study

1207 words - 5 pages

The potential role of smaller firms in employment creation is the most noticeable motivation for the recurring interest on that segment which has prompted the investigation of the factors that affect firm survival for that size class. The empirical literature, focused on developed countries, and has triggered controversies associated with size measurement and estimation issues [see e.g. Davis et al. (1996) and Davidsson et al.(1998)]. Evidence seems to indicate, as expected, that the net job creation effect is likely to be stronger in service industries. Nevertheless, more recent studies provide appealing evidence on particularly high net job creation by small firms also in the context of the manufacturing industry as suggested by Hijzen et al. (2010) and Neumark et al. (2011). Indeed, besides the job creation aspect, a well-known stylized fact refers to the large mortality of smaller firms a few years after start-up [see Bartelsman et al. (2005)].
In this regard, this paper considers the survival of small and medium enterprises-SMEs in the Brazilian manufacturing industry. The contributions of the present study reflect two main aspects:
(a) The literature and the available evidence on SMEs have focused on developed countries. Exceptions include the descriptive study by Najberg et al. (2000) which shows an important employment impact by smaller firms in Brazil over the 1995-97 period and the growth patterns of small firms located in southern Africa as studied by McPherson (1996). However, substantial mortality seems to prevail for that segment. Therefore, the study of firm-survival in a large emerging economy like Brazil -- characterized by the co-existence of modern and traditional sectors -- may be of interest. In fact, the macroeconomic stabilization after 1994 greatly reduced economic uncertainty and the lessening of institutional obstacles for firm creation since the 2000s appears to show a more favourable business environment. Moreover, simplified tax procedures were implemented for small businesses in the recent past;
(b) Most of the previous studies on survival make use of a cross section of entrants’ data and derive the survival pattern using fixed covariates. Exceptions include panel data studies like those of Esteve-Pérez et al. (2004, 2008). The latter focuses on the export-related survival of SMEs in Spain and explicitly controls for unobserved heterogeneity. In fact, the econometric approach closely relates to the one considered in this paper, but a gap in studies for developing countries still prevails.
The remainder of the paper is organized as follows. In section 2.1 we introduce a brief review of the relevant literature. Section 2.2 will deal with methodological aspects of our exercise including the relevant econometric issues involved. Section 3 contains the promised application to Brazilian data, and section 4 will offer final comments.

2. Firm survival: theoretical aspects

2.1 – A brief review of the literature
...

Find Another Essay On Determinants of Survival of Newly Created SMEs in the Brazilian Manufacturing Industry: an Econometric Study

The Problems of Living in a Newly Set Up Town

1029 words - 4 pages hard to farm and because of the distance between the newly developed towns and suppliers it took a long time for stock to be brought back in. Then there was the issue of Natural resources such as food because of this shops sometimes ran low on essential stock. There were sometimes water shortages along with food shortages, and the quality of land was an issue as in some cases it was not fertile enough to plant crops

The Social Determinants of Health Essay

897 words - 4 pages will explore the effects of healthy childhood development, personal health practices and coping skills, health services and income and social statuses with in the Maple Leaf neighbourhood. Further, this paper will explore how the above social determinants of health directly affect the students of St. Fidelis school. Lastly, this paper will explain how the rise in cavities within these children is an issue as well as approached to overcome this

Possible Solutions of Deforestation in the Brazilian Amazon

2776 words - 11 pages growth of crops in deteriorated areas. (Butler) As result if this procedure will be implemented, there will not be any need to cut trees. Secondly, the Brazilian government must be implicated in saving the Amazon such as expanding protection areas, compulsion of laws and raising funds. ARPA (Amazon Region Protection Areas) created 21 million hectares of protection areas by 2006. Moreover, they are going to constitute 283,000 km^2of protection

Determinants of Capital Structure of Pharmaceutical Industry of Pakistan

1383 words - 6 pages & Health Care Report. Business Monitor International . Booth, L, V. Aivazian, A. Dermirguc-kunt & V. Maksmivoc. (2001). Capital structures in developing counteries. Journal of Finance , vol. 56, p. 87-130. Buferna, Bagassa, & Hodgkinson. (2005). Determinants of capital structure; Evidence from Libya. Libya. Hijazi & Tariq . (2006). Determinants of capital structure: A case study for the Pakistani Cement Industry. The Lahore Journal of Economics

An applied environmental ethics 'case study on the Brazilian rainforest'

5842 words - 23 pages -populated ones from 1950 to 1985, was observed as a successful model by the Brazilian authorities (Shoumatoff).Brazil could simultaneously help relieve its debt, by cutting down logs in the rainforest and selling them to Japan, a nation with a market always readily disposed to the acquisition of raw lumber.The Brazilian government, hence, devised a detailed procedure to construct motorways deep into the remote basin of the Amazon so that roughly 30

Determinants of Carbon Dioxide Emissions in the Philippines

2172 words - 9 pages trade affects the carbon dioxide emissions in the Philippines. Works Cited Al-mulali, U., & Sheau-Ting, L. (2014). Econometric analysis of trade, exports, imports, energy consumption and CO2 emission in six regions. Renewable and Sustainable Energy Reviews, 33, 484-498. Retrieved from http://dx.doi.org/10.1016/j.rser.2014.02.010 Banerjee, P. K., & Rahman, M. (n.d.). Some Determinants of CO2 Emissions in Bangladesh. Retrieved from http://bea-bd.org

Output and Gender Discrimination in Pay: Evidence from Manufacturing Industry of the Kyrgyz Republic

4372 words - 17 pages statistical significance and anticipated outcome. As stated in economic theory and proved in the majority of the literature discussed, evidence from manufacturing industry of the Kyrgyz Republic (years 1999-2007) demonstrated a negative relationship between gender pay gap and output, when control for gender gap in employment. With existing data and econometric knowledge, results of the regression indicate that a 1% decrease in gender wage gap leads

Exploring how HG Wells created an atmosphere of fear and tension in 'The red room'

1771 words - 7 pages How does HG Wells build up an atmosphere of fear and show the young man reduced from self-assurance to panic and terror?The title of the story I will look at in this assignment is “The Red Room” by HG Wells. It is a ghost story, written in 1896. HG Wells uses elements from the gothic genre to enhance the sinister atmosphere in the story. “The Red Room” is written in first person, this enables the reader to experience the

The Long-Standing Viability of the Australian Manufacturing Industry

723 words - 3 pages . The future outlook with an eye on the present The primary industries of Australia have resulted in good revenue for the nation. However, they are affected by the shift from the labor stage to the production stage that calls for lesser number of employees, resulting in job losses, which is quite prevalent in the automotive manufacturing industry. The industry that the nation will rely on in a decade or two, is indeed a matter of speculation. Given

Manufacturing Practices of the Footwear Industry: Nike vs. the Competition

2314 words - 9 pages the product high and, in some cases, even increases it. By cutting back on manufacturing material, increasing the retail price, and limiting the quantity of newly released sneakers, Nike has been able to fool their customers. The decrease in quantity supplied coupled with an increase in the unit price of the product leads the consumer to believe that that item is of high value. However, this is not so because the decrease in material used in

The Problems of Living in a Newly Set Up Town in the West

2721 words - 11 pages claimed that he was confused by all of the different religions, but one night in 1823 an angel came to him, called Moroni. The angel told him that it would help him find some golden plates with scripture on them written by Mormon. Smith found the plates, and translated them, and created the book of Mormon. It tells the tale of Old Testament tribes moving from Israel to America after Mormon rose from the dead. Whether or not

Similar Essays

Determinants Of Survival Of Newly Created Sm Es In The Brazilian Manufacturing Industry: An Econometric Study

2139 words - 9 pages positive effect of industry growth on survival encountered in the present paper also is consistent with some previous studies as indicated by Mata and Portugal (1994), Stone (1998) and Segarra and Callejón (2002). Finally, the negative effect of industrial concentration on firm survival had previously limited evidence. An analogous result had been found by Stone (1998). Altogether, the results for newly created SMEs in Brazil do display some

Evaluation Of Deforestation In The Brazilian Amazon

2577 words - 10 pages , Judson Valentim suggested using non-ploughing technology, which was invented in recent times and may catalyse the growth of crops in deteriorated areas. (Butler) As result if this method will be used, there will not be any need to cut trees. Secondly, justice actions must be taken by Brazilian government to save Amazon such as expanding protection areas, enforcement of laws and raising funds. ARPA (Amazon Region Protection Areas) created 21

Survival Of An Ancient Sport, In The New World

917 words - 4 pages In one of the great European countries, Ireland, a sport so loved by its people has existed for many centuries. This sport is known as Gaelic football. It is one of Irelands most popular native sports. Gaelic football has had many changes made to it since it was first founded, which these changes are still practiced today. Gaelic football has a unique set of playing rules that sets it apart from any other sport played around the world. Gaelic

The Characteristics Of Economic Activity In Newly Industrialised Countries

1444 words - 6 pages . Another example of economic activity to gain success would be to lower the percent of the manufacturing workforce and also try to eliminate foreign competitors by lowering prices of their exported goods. An example of Second Generation NIC’s is Malaysia. The country has earned its status as an Asian Tiger on the basis of its successful transition from dependence in the 1960s and 70s on primary product exports, to