MANUFACTURING INDUSTRY LIFE CYCLE

• For the new establishments, the risk of liquidation in the first five years is 50 %.
• 4 % of the annual employment is created by new establishments.
• Establishments which survive five years provide significant employment.
• Establishments in oligopolistic sectors have higher risk of liquidation.
• Establishments with higher advertisement expenditures have lower risks of liquidation.
  

  The study covers the two consecutive General Industry Censuses of 1985 and 1992. The censuses cover all public establishments and private establishments with 10+ employees.

  Based on the result of the study, 29 % of the establishments which were active in 1985 were closed in four years. The ratio of liquidation in four years are 45 % for 1986, 39 % for 1987, and 40 % for 1988.