Exploring the processes of firm growth: evidence from a vector auto-regression

This article offers many new insights into the processes of firm growth by applying a vector autoregression model to longitudinal panel data on French manufacturing firms. We observe the coevolution of key variables such as growth of employment, sales, gross operating surplus, and labor productivity...

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Veröffentlicht in:Industrial and corporate change 2010-12, Vol.19 (6), p.1677-1703
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description This article offers many new insights into the processes of firm growth by applying a vector autoregression model to longitudinal panel data on French manufacturing firms. We observe the coevolution of key variables such as growth of employment, sales, gross operating surplus, and labor 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. Quantile regressions highlight some asymmetries between negative-growth and fast-growth firms.
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source PAIS Index; Business Source Complete; Oxford University Press Journals All Titles (1996-Current)
subjects Business cycles
Business growth
Economic models
Economic performance
Economic theory
Economics and Finance
Employment
Employment level
Enterprises
France
Growth rates
Humanities and Social Sciences
Industrial sector
Manufacturing
Productivity
Profits
Regression analysis
Studies
Vector-autoregressive models
Western Europe
title Exploring the processes of firm growth: evidence from a vector auto-regression
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