Exploring the "mechanics" of firm growth : evidence from a short-panel VAR
AbstractThis paper offers many new insights into the processes of firm growth by applying a vector autoregression (VAR) model to longitudinal panel data on French manufacturing firms. We observe the co-evolution of key variables such as growth of employment, sales, gross operating surplus and labour productivity growth. Preliminary results suggest that employment growth is succeeded by the growth of sales, which in turn is followed by growth of profits. Generally speaking, however, growth of profits is not followed by much employment growth or sales growth.
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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number r07037.
Length: 26 pages
Date of creation: Jul 2007
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Firm growth; panel VAR; employment growth; industrial dynamics; productivity growth.;
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Find related papers by JEL classification:
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
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- Alex Coad & Rekha Rao & Federico Tamagni, 2008.
"Growth Processes of Italian Manufacturing Firms,"
Jena Economic Research Papers
2008-039, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Alexander Coad & Rekha Rao, 2007.
"Firm Growth and R&D Expenditure,"
Papers on Economics and Evolution
2007-10, Philipps University Marburg, Department of Geography.
- Alexander Coad, 2007. "Disentangling the firm growth process: evidence from a recursive panel VAR," Papers on Economics and Evolution 2007-15, Philipps University Marburg, Department of Geography.
- Martin Binder & Alex Coad, 2009. "An Examination of the Dynamics of Happiness Using Vector Autoregressions," Papers on Economics and Evolution 2009-04, Philipps University Marburg, Department of Geography.
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