‪Does the employment growth rate depend on the local context? An analysis of French industrial establishments over the 2004-2010 period‪

Nadine Levratto and Aziza Garsaa

Revue d'économie industrielle, 2016, vol. n° 153, issue 1, 47-89

Abstract: ?This paper seeks to shed some light on the relationship between firm?s performance and local context. We empirically address this question focusing on the employment growth rate of French manufacturing establishments geo-referenced at the employment area level, an economically consistent territorial division. Using an unbalanced panel of 149,929 plants over the 2004-2010 period, we estimate different growth models including local specific variables controlled with company specific ones. The results confirm that the establishment growth rate is influenced by the local context and that some features such as unemployment, agglomeration effects or skills matter significantly. The robustness checks performed on subsamples, however, show that the profile of the areas or the market (local or larger) may significantly affect the intensity of the link between a plant and its environment.?

Keywords: Firm growth; establishments; geographical location; manufacturing industry; panel data (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (6)

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