Duration of firms in an infant industry: The case of Indian computer hardware

This study analyses survival of firms in an infant industry in a developing economy. It is found that (a) entry size and the probability of exit are positively related, which is the opposite of the result in most previous studies; (b) similar to previous studies, post-entry size is negatively related to the hazard; (c) firms with longer duration have a more volatile time path of size; (d) the hazard declines with age at an increasing rate suggesting increasing returns to learning and (e) diversification of firms and public ownership have little effect on duration. (C) 1997 Elsevier Science B.V.