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Survival of contractors with previous subcontracting experience

Author

Listed:
  • De Silva, Dakshina G.
  • Kosmopoulou, Georgia
  • Lamarche, Carlos

Abstract

We examine the impact of the type of past experience for de novo contractors on business duration. Our results show that early involvement as a subcontractor in government procurement projects increases the chance of survival.

Suggested Citation

  • De Silva, Dakshina G. & Kosmopoulou, Georgia & Lamarche, Carlos, 2012. "Survival of contractors with previous subcontracting experience," Economics Letters, Elsevier, vol. 117(1), pages 7-9.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:7-9
    DOI: 10.1016/j.econlet.2012.04.071
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    References listed on IDEAS

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    1. Steven Klepper, 2002. "Firm Survival and the Evolution of Oligopoly," RAND Journal of Economics, The RAND Corporation, vol. 33(1), pages 37-61, Spring.
    2. De Silva, Dakshina G. & Kosmopoulou, Georgia & Lamarche, Carlos, 2009. "The effect of information on the bidding and survival of entrants in procurement auctions," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 56-72, February.
    3. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 441-450, August.
    4. Dakshina G. De Silva & Timothy Dunne & Georgia Kosmopoulou, 2003. "An Empirical Analysis of Entrant and Incumbent Bidding in Road Construction Auctions," Journal of Industrial Economics, Wiley Blackwell, vol. 51(3), pages 295-316, September.
    5. John R. Baldwin & Paul K. Gorecki, 1991. "Firm Entry and Exit in the Canadian Manufacturing Sector, 1970-1982," Canadian Journal of Economics, Canadian Economics Association, vol. 24(2), pages 300-323, May.
    6. Dunne, Timothy & Klimek, Shawn D. & Roberts, Mark J., 2005. "Exit from regional manufacturing markets: The role of entrant experience," International Journal of Industrial Organization, Elsevier, vol. 23(5-6), pages 399-421, June.
    7. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
    8. Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1989. "The Growth and Failure of U. S. Manufacturing Plants," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 671-698.
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    Citations

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    Cited by:

    1. Rodrigo Carril & Audrey Guo, 2023. "The Impact of Preference Programs in Public Procurement: Evidence from Veteran Set-Asides," Working Papers 1417, Barcelona School of Economics.
    2. Iossa, Elisabetta & Waterson, Michael, 2019. "Maintaining competition in recurrent procurement contracts: A case study on the London bus market," Transport Policy, Elsevier, vol. 75(C), pages 141-149.
    3. B. Cesi & M. Lorusso, 2020. "Collusion in public procurement: the role of subcontracting," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 251-265, April.
    4. Xun Liu & Dexin Liu & Mengyu Xu, 2023. "An Extended Theory of Planned Behavior to Explain General Contractors’ Long-Term Cooperation Intentions in Construction Projects: Empirical Evidence from China," Sustainability, MDPI, vol. 15(9), pages 1-17, April.

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    More about this item

    Keywords

    Government procurement; Subcontracting; Survival;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction

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