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A Closer Look at Serial Growth Rate Correlation

  • Alex Coad

    ()

Serial correlation in annual growth rates carries a lot of information on growth processes: it allows us to directly observe firm performance as well as to test theories. Using a 7-year balanced panel of 10000 French manufacturing firms, we observe that small firms typically are subject to negative correlation of annual growth rates, whereas larger firms display positive correlation. Furthermore, we find that those small firms that experience extreme positive or negative growth in any one year are unlikely to repeat this performance in the following year

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File URL: http://hdl.handle.net/10.1007/s11151-007-9135-y
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Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 31 (2007)
Issue (Month): 1 (August)
Pages: 69-82

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Handle: RePEc:kap:revind:v:31:y:2007:i:1:p:69-82
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100336

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  3. Giulio Bottazzi & Alex Coad & Nadia Jacoby & Angelo Secchi, 2005. "Corporate Growth and Industrial Dynamics: Evidence from French Manufacturing," LEM Papers Series 2005/21, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  4. Alex Coad & Rekha Rao, 2006. "Innovation and Firm Growth in High-Tech Sectors: A Quantile Regression Approach," LEM Papers Series 2006/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
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