Are Firm Growth Rates Random? Analysing Pattern and Dependencies

Toke Reichsteicn and Michael S. Dahl ()
Authors registered in the RePEc Author Service: Toke Reichstein ()

International Review of Applied Economics, 2004, vol. 18, issue 2, pages 225-246

Abstract: Using Danish firm data covering almost 9000 observations, we find significant proof that firm growth cannot be considered as a simple Gibrat growth process. Key variables, such as size, age, geographical location and industry structure are tested against firm growth rates in turnover and employment. Besides running the regressions on all observations, we also consider and find highly interesting patterns in an industry context. Thus, we conclude that firm growth cannot be considered idiosyncratic. Firm growth is highly dependent on industry and geography.

Keywords: Firm growth; geographical location; industrial differences (search for similar items in EconPapers)
Date: 2004
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