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On the relationship between firm age and productivity growth

Author

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  • Jan de Kok
  • Peter Brouwer
  • Pieter Fris

Abstract

For young firms, a clear relationship exists between firm age and productivity. Various studies have shown that the productivity level of new firms is below the average level, while the productivity growth rate of (surviving) young firms is above average. During the first few years, the average level of productivity tends to increase while the average growth rate tends to decrease. For elder, established firms, the relationship between age and productivity becomes less clear. Established firms show on average a positive growth rate, but whether this growth rate is related to the specific age of these firms is not well established. In this study we examine the relationship between the age of firms and their productivity growth, for establishes firms, where establishes firms are defined as firms of at least 10 years of age. Our research question is: to which extent are differences in productivity growth rates between individual firms related to firm age?

Suggested Citation

  • Jan de Kok & Peter Brouwer & Pieter Fris, 2006. "On the relationship between firm age and productivity growth," Scales Research Reports H200617, EIM Business and Policy Research.
  • Handle: RePEc:eim:papers:h200617
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    Cited by:

    1. Jolanda Hessels & Kashifa Suddle & Maaike Mooibroek, 2008. "Global Entrepreneurship Monitor 2007 The Netherlands," Scales Research Reports A200805, EIM Business and Policy Research.
    2. Barrios García, J.A. & Morales González, B., 2009. "Forma de tenencia de la vivienda y nivel educativo de los hijos en España: Evidencia microeconométrica/," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 287(30á)-28, Abril.
    3. Min, Byung S. & Smyth, Russell, 2014. "Corporate governance, globalization and firm productivity," Journal of World Business, Elsevier, vol. 49(3), pages 372-385.
    4. Moyo, Busani, 2013. "Power infrastructure quality and manufacturing productivity in Africa: A firm level analysis," Energy Policy, Elsevier, vol. 61(C), pages 1063-1070.

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