Economics at your fingertips  

Impact of global economic crisis on firm growth

Marko Peric and Vanja Vitezić ()

Small Business Economics, 2016, vol. 46, issue 1, 12 pages

Abstract: The global economic crisis has had an adverse effect on, and may continue to affect, the entrepreneurial sector all over the world. However, even in a recessionary period, there will always be some firms growing faster than others. It is therefore imperative to understand the variables and processes that make some firms grow faster or more resilient to crisis than others. In this paper, we focus on firm size and its contributions to growth. We examine whether growth rates of manufacturing and service industries are independent of firm size during the period of economic crisis. Based on a large sample of surviving firms in the manufacturing and hospitality industries, the results of two-step dynamic panel suggest that turnover growth is positively associated with companies’ size during the observed period of economic recession 2008–2013. In both industries, large and medium-sized firms exhibit higher growth than do small firms. Copyright Springer Science+Business Media New York 2016

Keywords: Firm growth; Firm size; Service industries; Economic crisis; Gibrat’s Law; D22; L11; L25; L60; L83; M10; L26 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

DOI: 10.1007/s11187-015-9671-z

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2023-02-03
Handle: RePEc:kap:sbusec:v:46:y:2016:i:1:p:1-12