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Plant Size, Age and Growth in Finnish Manufacturing

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  • Satu Nurmi

    (Statistics Finland, Finland)

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    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.

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    File URL: http://www.taloustieteellinenyhdistys.fi/images/stories/fep/fep12004_nurmi.pdf
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    Bibliographic Info

    Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

    Volume (Year): 17 (2004)
    Issue (Month): 1 (Spring)
    Pages: 3-17

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    Handle: RePEc:fep:journl:v:17:y:2004:i:1:p:3-17

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    Web page: http://www.taloustieteellinenyhdistys.fi
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    Cited by:
    1. Ghosh, Saibal, 2009. "Do productivity and ownership really matter for growth? Firm-level evidence," Economic Modelling, Elsevier, vol. 26(6), pages 1403-1413, November.
    2. A. Arrighetti & A. Ninni, 2009. "Firm size and growth opportunities: a survey," Economics Department Working Papers 2009-EP05, Department of Economics, Parma University (Italy).
    3. 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.
    4. 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).
    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.

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