Firm survival and employment dynamics during crises
January 1999. Moreover, while the first downturn was closer to an international crisis, having been relatively more evident abroad than in Portugal, the second downturn period was of a more domestic nature, having been relatively more suffered at home than by foreign countries. Our studies on these matters make a contribution to the evidence on what makes firms more (or less) successful under crises contexts, and consequently which firms may help countries to be more successful in the context of intensified complexity and uncertainty. Our findings are important to bear in mind at a time when Europe, and Portugal specifically, is under another severe downturn and when many firms, especially the smaller ones, are facing increasing difficulties. As a result, a better understanding of the differentiated behaviour of firms in the past may be useful to improve, or identify the need for, policy intervention. The remainder of this chapter is structured as follows. Section 14.2 explores the related literature on this topic. Section 14.3 presents and discusses the empirical results, first for firm employment growth rates and second for firm survival. Section 14.4 concludes and raises some policy implications.