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Table 1 Distribution of Sri Lanka firms by initial size, change in employment over the years, and EPZ status (%), 1995 – 2003

From: Mandatory costs by firm size thresholds: firm location, growth and death in Sri Lanka

EPZ firms Percent of sample Shrink Stay Grow Total
Less than 14 workers 22.5 29.3 26.7 44.0 100.0
14 workers 1.1 45.8 13.6 40.7 100.0
More than 14 workers 76.4 45.4 2.2 52.4 100.0
Total EPZ workers = 5,441      
Non EPZ firms Percent of sample Shrink Stay Grow Total
Less than 14 workers 75.6 37.2 40.8 22.0 100.0
14 workers 1.2 53.9 13.2 32.9 100.0
More than 14 workers 23.2 55.8 5.1 39.1 100.0
Total nonEPZ workers = 320,866      
  1. Source: Authors’ calculations based on the universe of all formal sector firms in Sri Lanka, 1995–2003.
  2. EPZ: Export Promotion Zone.