Regional business survival in Portugal
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abstract
JEL Classification Codes: C14, C41, L25, L26, R11
This paper addresses the post-entry performance of firms for seven regions in
Portugal, at the NUT II level, by investigating the structural characteristics of survival, using
non-parametric and semi-parametric methods, during the period 1985 to 2007. In order to
approach the prevalence of some stylized facts and determinants of new firm survival, a new
entrepreneurship database was produced following the application of the Eurostat/OECD
methodology to Quadros de Pessoal. In the non parametric estimation, Kaplan-Meier survival
functions and Nelson-Aalen hazard rates are used, while the semi-parametric estimation relates
survival with seven explanatory variables and sector and year dummies. The main contribution
of this work is the application of an internationally comparable methodology to a linked
employer-employee dataset, which provides a regional overview of firm and survival dynamics
over an extended period of time, while guaranteeing regional, national and international
comparability.
