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:
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
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