Firm Growth in Multinational Corporate Groups

Harald Oberhofer () and Michael Pfaffermayr ()

Working Papers from Faculty of Economics and Statistics, University of Innsbruck

Abstract: This paper formulates an econometric firm growth model that explicitly accounts for the interdependence of firm performance within corporate networks and is in line with several economic theories on firm growth. We estimate the model for national and multinational corporate groups (MNEs) using a recently introduced instrumental variable estimation procedure for peer group effects developed by Lee (2007). In our data for corporate groups the observation of fast growing young firms and slow growing old firms disappears if interdependence of firm performance within corporation networks is introduced.

Keywords: Firm Growth; Size Adjustment; Corporate Groups; Multinational Activity; Peer-Group Effect Estimation. (search for similar items in EconPapers)
JEL-codes: C21 F23 L25 (search for similar items in EconPapers)
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Persistent link: http://EconPapers.repec.org/RePEc:inn:wpaper:2008-10

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