The Determinants of Entry are not Independent of Start-up Size: Some Evidence from Spanish Manufacturing

Abstract

In this paper we explore the determinants of firm start-up size of Spanish manufacturing industries. The industries’ barriers to entry affect the ability of potential entrants to enter the markets and the size range at which they decide to enter. In order to examine the relationships between barriers to entry and size we applied the quantile regression techniques. Our results indicate that the variables that characterize the structure of the market, the variables that are related to the behaviour of the incumbent firms and the rate of growth of the industries generate different barriers depending on the initial size of the entrants.

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Correspondence to Josep-Maria Arauzo-Carod.

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JEL classifications: L110, L600.

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Arauzo-Carod, JM., Segarra-Blasco, A. The Determinants of Entry are not Independent of Start-up Size: Some Evidence from Spanish Manufacturing. Rev Ind Organ 27, 147–165 (2005). https://doi.org/10.1007/s11151-005-8321-z

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Keywords

  • entry
  • regression quantiles
  • start-up size