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 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.
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| Main Authors: | , , , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020-05
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| 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 https://hdl.handle.net/10986/33751 |
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dig-okr-10986337512024-08-09T06:22:56Z 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 Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/140091589221773664/Survival-of-Firms-during-Economic-Crisis https://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 application/pdf text/plain World Bank, Washington, DC |
| institution |
Banco Mundial |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
En linea |
| databasecode |
dig-okr |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English |
| topic |
ECONOMIC CRISIS FIRM SURVIVAL FIRM EXIT CREATIVE DESTRUCTION ECONOMIC DISTRESS SURVIVAL TIME ENTERPRISE SURVEY FIRM HYBERNATION 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 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 |
| 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 |
| topic_facet |
ECONOMIC CRISIS FIRM SURVIVAL FIRM EXIT CREATIVE DESTRUCTION ECONOMIC DISTRESS SURVIVAL TIME ENTERPRISE SURVEY FIRM HYBERNATION |
| 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 |
2020-05 |
| url |
http://documents.worldbank.org/curated/en/140091589221773664/Survival-of-Firms-during-Economic-Crisis https://hdl.handle.net/10986/33751 |
| work_keys_str_mv |
AT bosioerica survivaloffirmsduringeconomiccrisis AT djankovsimeon survivaloffirmsduringeconomiccrisis AT jolevskifilip survivaloffirmsduringeconomiccrisis AT ramalhorita survivaloffirmsduringeconomiccrisis |
| _version_ |
1807155404373753856 |