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Survival Analysis of Logistics Service Providers: An Empirical Study of Chengdu, Area in China

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Document pages: 21 pages

Abstract: This paper worked on a sample of 6791 logisticsestablishments registered in Chengdu, China over the period 1984-2016 tounderstand the survival status of logistics serviceproviders (LSPs) by non-parametric Kaplan-Meier estimation, together withCox proportional hazard regression model, to identify factors affecting thefailure of LSPs. In particular, it studies the interaction effect between LSPs’size and entry timing and location. The empirical results show that: 1)Regarding the survival time, 1365 of the 6791 sample LSPs exited from themarket by 2017. The exit rate is 20.1 , and the average life of the 6791 LSPsis about 6 years. 2) The survival of LSPs depends on their typology, ownershipstructure. And there is no significant difference in the probability ofsurvival for both independent LSPs and logistics branches after controlling theeffects of other variables. 3) Location and entry timing also play an importantrole in the survival of small-scale LSPs, but these factors cannot explainlarge-scale LSPs’ failure.

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