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Determinants of Firm Start-Up Size: An Application of Quantile Regression for Ireland
Authors:Holger Görg  Eric Strobl  Frances Ruane
Institution:(1) School of Public Policy, Economics & Law, University of Ulster at Jordanstown, Newtownabbey, BT37 0QB, Northern Ireland;(2) Department of Economics, University of the West Indies, St. Augustine, Republic of Trinidad and Tobago;(3) Department of Economics, Trinity College, Dublin 2, Republic of Ireland
Abstract:In this paper we provide empirical evidence on the determinants of firm start-up size using data for the manufacturing sector in Ireland, and compare our results with recent findings for Portuguese manufacturing industries (Mata and Machado, 1996). To allow for firm heterogeneity between firm entrants we use quantile regression techniques for our empirical estimation. We find that the determinants of start-up size differ in their importance for small and large-scale entrants. In particular, industry size and industry growth seem to affect large-scale entrants only.
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