Survival of Firms during Economic Crisis

This paper estimates the survival time of nearly 7,000 firms in a dozen high-income and middle-income countries in a scenario of extreme economic distress, using the World Bank's Enterprises Surveys. Under the assumption that firms have no inc...

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Main Authors:	Bosio, Erica, Djankov, Simeon, Jolevski, Filip, Ramalho, Rita
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	ECONOMIC CRISIS FIRM SURVIVAL FIRM EXIT CREATIVE DESTRUCTION ECONOMIC DISTRESS SURVIVAL TIME ENTERPRISE SURVEY FIRM HYBERNATION
Online Access:	http://documents.worldbank.org/curated/en/140091589221773664/Survival-of-Firms-during-Economic-Crisis http://hdl.handle.net/10986/33751

id	okr-10986-33751
recordtype	oai_dc
spelling	okr-10986-337512022-09-20T00:10:35Z Survival of Firms during Economic Crisis Bosio, Erica Djankov, Simeon Jolevski, Filip Ramalho, Rita ECONOMIC CRISIS FIRM SURVIVAL FIRM EXIT CREATIVE DESTRUCTION ECONOMIC DISTRESS SURVIVAL TIME ENTERPRISE SURVEY FIRM HYBERNATION This paper estimates the survival time of nearly 7,000 firms in a dozen high-income and middle-income countries in a scenario of extreme economic distress, using the World Bank's Enterprises Surveys. Under the assumption that firms have no incoming revenues and cover only fixed costs, the median survival time across industries ranges within 8 to 19 weeks, while on average firms have liquidity to survive between 12 and 38 weeks. Schumpeter's theory of creative destruction is not corroborated in the data, as potential exit is not predicated on the size of firms, their age, or their productivity. 2020-05-14T20:26:03Z 2020-05-14T20:26:03Z 2020-05 Working Paper http://documents.worldbank.org/curated/en/140091589221773664/Survival-of-Firms-during-Economic-Crisis http://hdl.handle.net/10986/33751 English Policy Research Working Paper;No. 9239 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ECONOMIC CRISIS FIRM SURVIVAL FIRM EXIT CREATIVE DESTRUCTION ECONOMIC DISTRESS SURVIVAL TIME ENTERPRISE SURVEY FIRM HYBERNATION
spellingShingle	ECONOMIC CRISIS FIRM SURVIVAL FIRM EXIT CREATIVE DESTRUCTION ECONOMIC DISTRESS SURVIVAL TIME ENTERPRISE SURVEY FIRM HYBERNATION Bosio, Erica Djankov, Simeon Jolevski, Filip Ramalho, Rita Survival of Firms during Economic Crisis
relation	Policy Research Working Paper;No. 9239
description	This paper estimates the survival time of nearly 7,000 firms in a dozen high-income and middle-income countries in a scenario of extreme economic distress, using the World Bank's Enterprises Surveys. Under the assumption that firms have no incoming revenues and cover only fixed costs, the median survival time across industries ranges within 8 to 19 weeks, while on average firms have liquidity to survive between 12 and 38 weeks. Schumpeter's theory of creative destruction is not corroborated in the data, as potential exit is not predicated on the size of firms, their age, or their productivity.
format	Working Paper
author	Bosio, Erica Djankov, Simeon Jolevski, Filip Ramalho, Rita
author_facet	Bosio, Erica Djankov, Simeon Jolevski, Filip Ramalho, Rita
author_sort	Bosio, Erica
title	Survival of Firms during Economic Crisis
title_short	Survival of Firms during Economic Crisis
title_full	Survival of Firms during Economic Crisis
title_fullStr	Survival of Firms during Economic Crisis
title_full_unstemmed	Survival of Firms during Economic Crisis
title_sort	survival of firms during economic crisis
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/140091589221773664/Survival-of-Firms-during-Economic-Crisis http://hdl.handle.net/10986/33751
_version_	1764479438770143232

Survival of Firms during Economic Crisis

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