Author(s): Caires, Filipe B. ; Reis, Hugo ; Rodrigues, Paulo Manuel Marques
Date: 2023
Persistent ID: http://hdl.handle.net/10362/159211
Origin: Repositório Institucional da UNL
Subject(s): Firm dynamics; Firm survival; Hazard model; Tourism exposure; Economics and Econometrics
Funding Information: The authors thank two anonymous referees and Editor Mark P. Taylor for their helpful and constructive feedback on an earlier version of this paper. Rodrigues gratefully acknowledges financial support from the Portuguese Science Foundation (FCT) through (UID/ECO/00124/2013 and Social Sciences DataLab, Project 22209), POR Lisboa (LISBOA-01-0145-FEDER-007722 and Social Sciences DataLab, Project 22209) and POR Norte (Social Sciences DataLab, Project 22209). Publisher Copyright: © 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
In this article, a discrete-time hazard model to study firm survival in the Portuguese Tourism sector is estimated. This sector has experienced a remarkable performance over the last decades. Results show that when compared to other sectors, tourism firms are more likely to exit: (i) if they are young (less than 10 years of existence); and (ii) if they belong to the group of worse performers (i.e. belong to the lower tail of the firm distribution). Within tourism related sectors, firms with highest tourism exposure, such as travel agencies and hotels are always among the best performers in terms of survival. Moreover, despite of Tourism being one of the most volatile sectors in periods of high uncertainty, results show a higher survival resilience among established tourism associated firms.
