Small Business Economics

, Volume 14, Issue 3, pp 211–222 | Cite as

Determinants of Firm Start-Up Size: An Application of Quantile Regression for Ireland

  • Holger Görg
  • Eric Strobl
  • Frances Ruane


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.


Empirical Evidence Regression Technique Industrial Organization Manufacturing Industry Quantile Regression 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Acs, Zoltan J. and David B. Audretsch, 1989a, ‘Births and Firm Size’, Sourthern Economic Journal 56, 467–475.Google Scholar
  2. Acs, Zoltan J. and David B. Audretsch, 1989b, ‘Small-firm Entry in US Manufacturing’, Economica 56, 255–265.Google Scholar
  3. Audretsch, David B., 1991, ‘New-Firm Survival and the Technological Regime’, Review of Economics and Statistics 73, 441–450.Google Scholar
  4. Audretsch, David B. and Zoltan, J. Acs, 1994, ‘New-Firm Start-ups, Technology, and Macroeconomic Fluctuations’, Small Business Economics 6, 439–449.Google Scholar
  5. Audretsch, David B. and Talat Mahmood, 1995, ‘New-Firm Survival: New Results using a Hazard Function’, Review of Economics and Statistics 77, 97–103.Google Scholar
  6. Bassett, G. and R. Koenker, 1982, ‘An Empirical Quantile Function for Linear Models with iid Errors’, Journal of the American Statistical Association 77, 407–415.Google Scholar
  7. Beesley, M. E. and R. E. Hamilton, 1984, ‘Small Firms’ Seedbed Role and the Concept of Turbulence’, Journal of Industrial Economics 33, 217–231.Google Scholar
  8. Boeri, Tito and Lutz Bellmann, 1995, ‘Post-Entry Behavior and the Cycle: Evidence from Germany’, International Journal of Industrial Organization 13, 483–500.Google Scholar
  9. Cable, John and Joachim Schwalbach, 1991, ‘International Comparisons of Entry and Exit’, in P. A. Geroski and J. Schwalbach (eds.), Entry and Market Contestability: An International Comparison, Oxford: Blackwell, pp. 257–281.Google Scholar
  10. Caves, Richard E., 1998, ‘Industrial Organization and New Findings on the Turnover and Mobility of Firms’, Journal of Economic Literature 36, 1947–1982.Google Scholar
  11. D'Agostino, R. B., A. Balanger and R. B. D'Agostino Jr., 1990, ‘A Suggestion for Using Powerful and Informative Tests of Normality’, American Statistican 44, 316–321.Google Scholar
  12. Geroski, Paul A., 1991, Market Dynamics and Entry, Oxford: Blackwell.Google Scholar
  13. Geroski, Paul A., 1995, ‘What Do We Know About Entry?’, International Journal of industrial Organization 13, 421–440.Google Scholar
  14. Görg, Holger and Eric Strobl, 1999, ‘Multinational Companies and the Entry of Indigenous Firms: Panel Data Evidence for Ireland’, Centre for Economic Research Working Paper WP99/8, University College Dublin.Google Scholar
  15. Koenker, R. and G. Bassett, 1978, ‘Regression Quantiles’, Econometrica 46, 33–50.Google Scholar
  16. Lyons, Bruce, 1980, ‘A New Measure of Minimum Efficient Plant size in UK Manufacturing Industries’, Economica 17, 19–34.Google Scholar
  17. Mata, José, 1993, ‘Entry and Type of Entrant: Evidence from Portugal’, International Journal of Industrial Organization 11, 101–122.Google Scholar
  18. Mata, José and José A. E. Machado, 1996, ‘Firm Start-up Size: A Conditional Quantile Approach’, European Economic Review 40, 1305–1323.Google Scholar
  19. Mata, José and Pedro Portugal, 1994, ‘Life Duration of New Firms’, Journal of Industrial Economics 42, 227–245.Google Scholar
  20. Ruane, Frances and Holger Görg, 1996, ‘Aspects of Foreign Direct Investment in Irish Manufacturing Since 1973: Policy and Performance’, Journal of the Statistical and Social Inquiry Society of Ireland 27(4), 37–85.Google Scholar
  21. Schumpeter, Joseph A., 1934, The Theory of Economic Development, Cambridge, MA: Harvard University Press.Google Scholar
  22. Wagner, Joachim, 1992, ‘Firm Size, Firm Growth, and Persistence of Chance: Testing Gibrat's Law with Establishment Data from Lower Saxony’, Small Business Economics 4, 125–131.Google Scholar
  23. Wagner, Joachim, 1994a, ‘The Post-Entry Performance of New Small Firms in German Manufacturing Industries’, Journal of Industrial Economics 42, 141–154.Google Scholar
  24. Wagner, Joachim, 1994b, ‘Small Firm Entry in Manufacturing Industries: Lower Saxony, 1979–1989’, Small Business Economics 6, 211–223.Google Scholar
  25. Weiss, Christoph R., 1998, ‘Size, Growth, and Survival in the Upper Austrian Farm Sector’, Small Business Economics 10, 305–312.Google Scholar

Copyright information

© Kluwer Academic Publishers 2000

Authors and Affiliations

  • Holger Görg
    • 1
  • Eric Strobl
    • 2
  • Frances Ruane
    • 3
  1. 1.School of Public Policy, Economics & LawUniversity of Ulster at JordanstownNewtownabbeyNorthern Ireland
  2. 2.Department of EconomicsUniversity of the West IndiesSt. AugustineRepublic of Trinidad and Tobago
  3. 3.Department of EconomicsTrinity CollegeDublin 2Republic of Ireland

Personalised recommendations