Drivers of Firm Growth: Micro-evidence from Indian Manufacturing
Nanditha Mathew
Firm Dynamics, AEP Distribution, Heterogeneity, Quantile Regression
The paper presents micro evidence on firm dynamics for enterprises in
Indian Manufacturing sectors on the grounds of Prowess database
provided by the Cen- tre for Monitoring Indian Economy (CMIE) covering
the period 1991-2010. The parameterization of the distributions of
growth exhibit high level heterogeneity displayed among firms even
within the same sector, which widens over time. The transition
probabilities matrix reveals the coexistence of firms with very
different characteristics and performance within sectors. Given the
wide heterogeneities, the paper resorts to quantile regression to
identify the differential effect of regressors at different deciles of
the conditional distrubution.
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