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Firm growth and productivity growth: evidence from a panel VAR

  • Alex Coad
  • Tom Broekel

This article offers new insights into the processes of firm growth by applying a reduced-form 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 and gross operating surplus, as well as growth of multifactor productivity. It seems that employment growth is negatively associated with subsequent growth of productivity. This latter result, however, is sensitive to our choice of productivity indicator, i.e. multifactor productivity or labour productivity.

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File URL: http://hdl.handle.net/10.1080/00036846.2010.539542
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 44 (2012)
Issue (Month): 10 (April)
Pages: 1251-1269

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Handle: RePEc:taf:applec:44:y:2012:i:10:p:1251-1269
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  1. Coad, Alex, 2007. "Testing the principle of `growth of the fitter': The relationship between profits and firm growth," Structural Change and Economic Dynamics, Elsevier, vol. 18(3), pages 370-386, September.
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  4. Alex Coad, 2006. "A Closer Look at Serial Growth Rate Correlation," LEM Papers Series 2006/29, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
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  8. Alex Coad & Tom Broekel, 2007. "Firm growth and productivity growth : evidence from a panel VAR," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00200086, HAL.
  9. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
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  23. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
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