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Plant Size, Age and Growth in Finnish Manufacturing

Author

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  • Satu Nurmi

    (Statistics Finland, Finland)

Abstract

The purpose of this paper is to examine the relationships between plant size, age and employment growth in Finnish manufacturing during the period 1981–94. The findings suggest that Gibrat’s law fails to hold, i.e., small plants have higher growth rates than larger ones. The findings are robust to sample selection, unobserved heterogeneity and different model specifications. It is also found that plant age is negatively related to growth at least for younger plants, which is in accordance with learning models of firm growth. Furthermore, human capital factors and macroeconomic environment have significant effects on plant growth.

Suggested Citation

  • Satu Nurmi, 2004. "Plant Size, Age and Growth in Finnish Manufacturing," Finnish Economic Papers, Finnish Economic Association, vol. 17(1), pages 3-17, Spring.
    • Handle: RePEc:fep:journl:v:17:y:2004:i:1:p:3-17
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    File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/fep12004_nurmi.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Cucculelli, Marco & Ermini, Barbara, 2012. "New product introduction and product tenure: What effects on firm growth?," Research Policy, Elsevier, vol. 41(5), pages 808-821.
    3. A. Arrighetti & S. Curatolo & A. Lasagni, 2008. "Determinanti della domanda di laureati nell'industria manifatturiera italiana," Economics Department Working Papers 2008-EP02, Department of Economics, Parma University (Italy).
    4. Ghosh, Saibal, 2009. "Do productivity and ownership really matter for growth? Firm-level evidence," Economic Modelling, Elsevier, vol. 26(6), pages 1403-1413, November.
    5. Fernandes, Cristina & Ferreira, João & Raposo, Mario, 2013. "Drivers to firm innovation and their effects on performance: An international comparison," MPRA Paper 46776, University Library of Munich, Germany.
    6. Zemtsov, S. & Chernov, A., 2019. "What High-Tech Companies in Russia Grow Faster and Why?," Journal of the New Economic Association, New Economic Association, vol. 41(1), pages 68-99.
    7. Andrey V. Misyura, 2019. "High-tech industrial company: A normative and a positive approach to the definition," Journal of New Economy, Ural State University of Economics, vol. 20(4), pages 88-107, September.
    8. A. Arrighetti & A. Ninni, 2009. "Firm size and growth opportunities: a survey," Economics Department Working Papers 2009-EP05, Department of Economics, Parma University (Italy).

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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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