2006/29 | LEM Working Paper Series | |
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A Closer Look at Serial Growth Rate Correlation |
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Alex Coad |
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Keywords | ||
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Serial correlation, firm growth, quantile regression, French manufacturing,
fast-growth firms
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JEL Classifications | ||
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L11, L25
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Abstract | ||
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Serial correlation in annual growth rates carries a lot of information on growth pro-cesses
– it allows us to directly observe firm performance as well as to test theories.
Using a 7-year balanced panel of 10 000 French manufacturing firms, we observe that
small firms typically are subject to negative correlation of annual growth rates, whereas
larger firms display positive correlation. Furthermore, we find that those small firms that
experience extreme positive or negative growth in any one year are unlikely to repeat
this performance in the following year.
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Downloads | ||
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