Firm growth and productivity growth evidence from a panel VAR

Alex Coad () and Tom Broekel ()

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 new insights into the processes of firm growth by applying a reduced form vector autoregression (VAR) model to longitudinal panel data on French manufacturing firms (1996-2004). We observe the co-evolution of key variables such as growth of employment, sales, and gross operating surplus, as well as growth of multifactor productivity. It seems that employment growth is negatively associated with subsequent growth of productivity. This latter result, however, is sensitive to our choice of productivit indicator, i.e. multifactor productivity or labour productivity.

Keywords: Firm growth; Panel VAR; productivity growth; industrial dynamics; non-parametric frontier analysis. (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, nep-cse and nep-eff
Date: Written
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ftp://mse.univ-paris1.fr/pub/mse/CES2007/R07072.pdf (application/pdf)

Related works:
Working Paper: Firm Growth and Productivity Growth: Evidence from a Panel VAR (2007)
Working Paper: Firm growth and productivity growth: evidence from a panel VAR (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:mse:cesdoc:r07072

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