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Entry, Exit and Establishment Survival in UK Manufacturing

We study entry, exit and survival of UK manufacturing establishments from 1986 to 1991 using the newly released ARD database. We document patterns of entry and exit across industries and over time. We estimate an augmented Cox proportional hazard to examine the survival of new plants in the UK in this period. We find interactions between survival, size and age of establishment that differ between establishments that are singles and part of a group. We speculate that this finding may be consistent with market selection models based on learning.