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Firm Growth, European Industry Dynamics and Domestic Business Cycles

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  • Harald Oberhofer

Abstract

Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single market program (SMP) the EU 27 member states share a common market. Accordingly, the European industry business cycle is expected to become a more influential predictor of European firms' behavior at the expense of domestic fluctuations. Empirically, the results of a two-part model for a sample of European manufacturing firms reject this hypothesis. Additionally, subsidiaries of Multinational Enterprises (MNEs) constitute the most stable firm cohort throughout the observed business cycle.

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Bibliographic Info

Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

Volume (Year): 59 (2012)
Issue (Month): 3 (07)
Pages: 316-337

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Handle: RePEc:bla:scotjp:v:59:y:2012:i:3:p:316-337

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Citations

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Cited by:
  1. Harald Oberhofer, 2013. "Employment Effects of Acquisitions: Evidence from Acquired European Firms," Review of Industrial Organization, Springer, Springer, vol. 42(3), pages 345-363, May.
  2. Harald Oberhofer, 2010. "Firm Growth, European Industry Dynamics and Domestic Business Cycles," WIFO Working Papers, WIFO 377, WIFO.
  3. Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2011. "Job Creation and the Intra-distribution Dynamics of the Firm Size Distribution," WIFO Working Papers, WIFO 395, WIFO.
  4. Crespo Cuaresma, Jesus & Oberhofer, Harald & Vincelette, Gallina A., 2014. "Institutional Barriers and Job Creation in Central and Eastern Europe," Working Papers in Economics and Finance, University of Salzburg 2014-1, University of Salzburg.
  5. Werner Hölzl, 2011. "Persistence, Survival and Growth: A Closer Look at 20 Years of High-Growth Firms in Austria," WIFO Working Papers, WIFO 403, WIFO.

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