Firm Growth, European Industry Dynamics and Domestic Business Cycles

Harald Oberhofer

No 377, WIFO Working Papers from WIFO

Abstract: Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single Market program the EU 27 member countries share a common market. Accordingly, the European industry business cycle is expected to become a more influential predictor of European firms' behaviour at the expense of domestic fluctuations. Empirically, the results of a two-part model for a sample of European manufacturing firms reject this hypothesis. Additionally, subsidiaries of multinational enterprises constitute the most stable firm cohort throughout the observed business cycle.

Keywords: European integration; Firm growth; domestic business cycle; industry dynamics; multinational enterprises; two-part model (search for similar items in EconPapers)
Pages: 30 pages
Date: 2010-07
New Economics Papers: this item is included in nep-bec, nep-eec, nep-eur and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://www.wifo.ac.at/wwa/pubid/40160 abstract (text/html)

Related works:
Journal Article: Firm Growth, European Industry Dynamics and Domestic Business Cycles (2012)
Working Paper: Firm growth, European industry dynamics and domestic business cycles (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2010:i:377

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