What drives survival of urban firms? An asset-based approach in Korea

In this study we examine the effect of internal firm assets and external firm assets on firm survival in a metropolitan region of South Korea during a 22-year period (1990-2012). Drawing upon secondary data for three urban firm types (manufacturing, construction, and service), we apply a spatial Cox proportional hazard model and time series intervention to examine empirical associations. Results suggest that larger and older firms positively contributed to stronger regional economic outcome. Further, those in close spatial proximity to related firms survived longer. Increased survival of urban firms is associated with firm capacities in the context of external economic shocks.