Firms’ growth, size and age: a nonparametric approach



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Fariñas, José C. and Moreno Martín, Lourdes (2000) Firms’ growth, size and age: a nonparametric approach. Review of Industrial Organization, 17 (3). pp. 249-265. ISSN 1573-7160

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This paper offers empirical evidence of firm failure rates as well as the mean of the distribution of realized growth rates, distinguishing between the sample of non-failing firms and the sample of all firms, failing and non-failing. Attention is directed at identifying a set of characteristics, in particular the size and age of firms, systematically related to the patterns of firm growth and exit, using a panel of Spanish manufacturing firms. The two main contributions of the paper are the use of nonparametric techniques and the analysis of issues ignored in other studies like the regression-to-the-mean bias and the measurement of learning effects. We find evidence that failure rates and the mean growth rate of successful firms decline with size and age. When failing firms are integrated, there are no significant differences in the mean growth rate across the age and size of firms. Regression-to-the-mean does not prove to be a substantial factor behind the negative relationship between size and growth of surviving firms.

Item Type:Article
Uncontrolled Keywords:Flujos comerciales; Empresas; Inversión extranjera.
Subjects:Social sciences > Economics > Industrial organization
JEL:C25, F23, L60
ID Code:43299
Deposited On:13 Jul 2017 12:25
Last Modified:21 Jul 2017 11:02

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