Exploring the "mechanics" of firm growth: evidence from a short-panel VAR

Alex Coad ()

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: This paper offers many new insights into the processes of firm growth by applying a vector autoregression (VAR) model to longitudinal panel data on French manufacturing firms. We observe the co-evolution of key variables such as growth of employment, sales, gross operating surplus and labour 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.

Keywords: Firm growth; panel VAR; employment growth; industrial dynamics; productivity growth. (search for similar items in EconPapers)
JEL-codes: L25 L20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec
Date: 2007-07
View citations in EconPapers

Downloads: (external link)
ftp://mse.univ-paris1.fr/pub/mse/CES2007/R07037.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:mse:cesdoc:r07037

Access Statistics for this paper

More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne
Contact information at EDIRC.
Series data maintained by Jacqueline Pradel ().