Firm growth, European industry dynamics and domestic business cycles

Arbeitspapier

Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single market program (SMP) the EU 27 member states share a common market. Accordingly, the European industry business cycle is expected to become a more influential predictor of European firms' behavior at the expense of domestic fluctuations. Empirically, the results of a two-part model for a sample of European manufacturing firms reject this hypothesis. Additionally, subsidiaries of Multinational Enterprises (MNEs) constitute the most stable firm cohort throughout the observed business cycle.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FIW Working Paper ; No. 55

Classification and Topics

• Classification: Wirtschaft ; Economic Integration ; Multinational Firms; International Business ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices ; Firm Performance: Size, Diversification, and Scope
• Subject: Firm growth ; industry dynamics ; domestic business cycle ; European integration ; multinational enterprises ; two-part model

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Oberhofer, Harald
• Event: Veröffentlichung
• (who): FIW - Research Centre International Economics
• (where): Vienna
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/121060
• Last update: 10.03.2025, 11:45 AM CET