Growth Processes of Italian Manufacturing Firms

Alex Coad (), Rekha Rao-Nicholson and Federico Tamagni

No 2008-039, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: We apply a reduced-form vector autoregression model to analyze the growth processes of Italian manufacturing firms, 1989-1997. We focus in particular on lead-lag associations describing the coevolution of employment growth, sales growth, growth of profits and labour productivity growth. Employment growth precedes sales growth and growth of profits, and in turn sales growth is also associated with subsequent profits growth. There appears to be little feedback of either sales or profits on employment growth, however. There is no clear association of employment growth with subsequent changes in labour productivity, although at the second lag there is a small negative association. Productivity growth, however, is positively associated with subsequent growth of employment and sales. Quantile autoregressions find asymmetries between growth processes for growing and shrinking firms.

Keywords: Firm Growth; Panel VAR; Employment Growth; Industrial Dynamics; Productivity Growth (search for similar items in EconPapers)
JEL-codes: L20 L25 (search for similar items in EconPapers)
Date: 2008-05-06
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff and nep-ent
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://oweb.b67.uni-jena.de/Papers/jerp2008/wp_2008_039.pdf (application/pdf)

Related works:
Journal Article: Growth processes of Italian manufacturing firms (2011)
Working Paper: Growth Processes of Italian Manufacturing Firms (2008)
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: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2008-039

Access Statistics for this paper

More papers in Jena Economics Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().