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Long-run profits in times of crisis: A comparison between European SMEs and large companies

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  • Nuria Alcalde-Fradejas
  • Marisa Ramírez-Alesón

Abstract

This is pioneering research in that it makes a comparison of the process of convergence of long-run profits in the manufacturing sector of six European countries (2000-12), differentiating between SMEs and large firms, and by identifying the impact of the crisis on this process. The results obtained by employing the convergence model, known as the Partial Adjustment Model, indicate that the inter-country competitive process, is working better among large companies than among SMEs. The impact of the crisis on this process has been uneven across the countries and the sizes of the firms.

Suggested Citation

  • Nuria Alcalde-Fradejas & Marisa Ramírez-Alesón, 2015. "Long-run profits in times of crisis: A comparison between European SMEs and large companies," Estudios de Economia, University of Chile, Department of Economics, vol. 42(1 Year 20), pages 79-97, June.
    • Handle: RePEc:udc:esteco:v:42:y:2015:i:1:p:79-97
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    References listed on IDEAS

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    Cited by:

    1. Yehui Tong & Ramon Saladrigues, 2022. "An analysis of factors affecting the profits of new firms in Spain: Evidence from the food industry," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(1), pages 28-38.

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    More about this item

    Keywords

    Convergence; crisis; Europe; firm; SME.;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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