Corporate growth convergence in Europe
AbstractIt is widely believed that the implementation of the Single Market Programme in 1992 has induced a transformation in industrial structures across Europe. Some people believe that it has driven Europe towards a common industrial structure. However, using a newly available database covering nearly every firm above 100 employees in 14 European countries over the time period 1994 to 1998, the hypothesis of convergence in corporate sizes within industries is unambiguously rejected by the data. A Gibrat process best describes the growth of very large and mature firms, but smaller and younger firms depart from this prediction. Pre-post 1992 comparisons using another database for larger listed firms reveal that the speed of convergence actually decreased post-1992. Copyright 2004, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 56 (2004)
Issue (Month): 4 (October)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
Other versions of this item:
- Geroski, Paul A & Gugler, Klaus Peter, 2001. "Corporate Growth Convergence in Europe," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2838, C.E.P.R. Discussion Papers.
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Davies, Stephen & Lyons, Bruce, 1996. "Industrial Organization in the European Union: Structure, Strategy, and the Competitive Mechanism," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198289739, October.
- Ijiri, Yuji & Simon, Herbert A, 1974. "Interpretations of Departures from the Pareto Curve Firm-Size Distributions," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(2), pages 315-31, Part I, M.
- Evans, David S., 1986.
"The Relationship Between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries,"
Working Papers, C.V. Starr Center for Applied Economics, New York University
86-33, C.V. Starr Center for Applied Economics, New York University.
- Evans, David S, 1987. "The Relationship between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 35(4), pages 567-81, June.
- Bottasso, Anna & Sembenelli, Alessandro, 2001. "Market power, productivity and the EU Single Market Program: Evidence from a panel of Italian firms," European Economic Review, Elsevier, Elsevier, vol. 45(1), pages 167-186, January.
- Schmalensee, Richard., 1984.
"Do markets differ much?,"
Working papers, Massachusetts Institute of Technology (MIT), Sloan School of Management
1531-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Schmalensee, Richard, 1985. "Do Markets Differ Much?," American Economic Review, American Economic Association, American Economic Association, vol. 75(3), pages 341-51, June.
- Geroski, Paul A & Machin, Stephen & Walters, Christopher F, 1997. "Corporate Growth and Profitability," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 45(2), pages 171-89, June.
- Das, Sanghamitra, 1995. "Size, age and firm growth in an infant industry: The computer hardware industry in India," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 13(1), pages 111-126, March.
- Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989.
"The Growth and Failure of U.S. Manufacturing Plants,"
The Quarterly Journal of Economics, MIT Press,
MIT Press, vol. 104(4), pages 671-98, November.
- Dunne, T. & Roberts, M.J. & Samuelson, L., 1988. "The Growth And Failure Of U.S. Manufacturing Plants," Papers, Pennsylvania State - Department of Economics 1-87-5, Pennsylvania State - Department of Economics.
- Liu, Jin-Tan & Tsou, Meng-Wen & Hammitt, James K., 1999. "Do small plants grow faster? Evidence from the Taiwan electronics industry," Economics Letters, Elsevier, Elsevier, vol. 65(1), pages 121-129, October.
- Variyam, Jayachandran N. & Kraybill, David S., 1992. "Empirical evidence on determinants of firm growth," Economics Letters, Elsevier, Elsevier, vol. 38(1), pages 31-36, January.
- Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, American Economic Association, vol. 86(5), pages 1216-38, December.
- Mueller, Dennis C, 1972. "A Life Cycle Theory of the Firm," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 20(3), pages 199-219, July.
- Chandler, Alfred Jr., 1992. "What is a firm? : A historical perspective," European Economic Review, Elsevier, Elsevier, vol. 36(2-3), pages 483-492, April.
- G. Urga & P. A. Geroski & S. Lazarova & C. F. Walters, 2003.
"Are differences in firm size transitory or permanent?,"
Journal of Applied Econometrics, John Wiley & Sons, Ltd.,
John Wiley & Sons, Ltd., vol. 18(1), pages 47-59.
- Geroski, Paul A & Samiei, Hossein & Urga, Giovanni, 1997. "Are Differences in Firm Size Transitory or Permanent?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1691, C.E.P.R. Discussion Papers.
- Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 46(02), pages 385-406, June.
- Schmalensee, Richard, 1992. "Sunk Costs and Market Structure: A Review Article," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 40(2), pages 125-34, June.
- Bronwyn H. Hall, 1986.
"The Relationship Between Firm Size and Firm Growth in the U.S. Manufacturing Sector,"
NBER Working Papers
1965, National Bureau of Economic Research, Inc.
- Hall, Bronwyn H, 1987. "The Relationship between Firm Size and Firm Growth in the U.S. Manufacturing Sector," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 35(4), pages 583-606, June.
- P. Hart, 2000. "Theories of Firms' Growth and the Generation of Jobs," Review of Industrial Organization, Springer, Springer, vol. 17(3), pages 229-248, November.
- Hart, Peter E & Oulton, Nicholas, 1996. "Growth and Size of Firms," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(438), pages 1242-52, September.
- Wernerfelt, Birger & Montgomery, Cynthia A, 1988. "Tobin's q and the Importance of Focus in Firm Performance," American Economic Review, American Economic Association, American Economic Association, vol. 78(1), pages 246-50, March.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.