Firm growth and productivity growth: evidence from a panel VAR

Alex Coad (1, 2) , Tom Broekel (3)

1 Evolutionary Economics Group [Jena]
2 CES - Centre d'économie de la Sorbonne
3 Department of Economic Geography

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. 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 productivity indicator, i.e. multifactor productivity or labour productivity.

Mots clés: Social Sciences & Humanities

Domaines: Économie et finance quantitative [q-fin]

Alex Coad, Tom Broekel. Firm growth and productivity growth: evidence from a panel VAR. Applied Economics, 2011, pp.1. ⟨10.1080/00036846.2010.539542⟩. ⟨hal-00670760⟩