Arbeitspapier
Inside the virtuous cycle between productivity, profitability, investment and corporate growth: An anatomy of China industrialization
This article explores the dynamics of market selection by investigating of the relationships linking productivity, profitability, investment and growth, based on China's manufacturing firm-level dataset over the period 1998 - 2007. First, we find that productivity variations, rather than relative levels, are the dominant productivity-related determinant of firm growth, and account for 15% - 20% of the variance in firms' growth rates. The direct relation between profitability and firm growth is much weaker as it contributes for less than 5% to explain the different patterns of firm growth. On the other hand, the profitability-growth relationship is mediated via investment. Firm's contemporaneous and lagged profitabilities display positive and significant effect on the probability to report an investment spike, and, in turn, investment activity is related to higher firm growth.
- Language
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Englisch
- Bibliographic citation
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Series: LEM Working Paper Series ; No. 2015/03
- Classification
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Wirtschaft
Firm Behavior: Empirical Analysis
Market Structure, Firm Strategy, and Market Performance: General
Firm Objectives, Organization, and Behavior: General
Industry Studies: Manufacturing: General
Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
- Subject
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Productivity
Market selection
Profitability
Investment spike
Firm growth
Chinese economy
- Event
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Geistige Schöpfung
- (who)
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Yu, Xiaodan
Dosi, Giovanni
Grazzi, Marco
Lei, Jiasu
- Event
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Veröffentlichung
- (who)
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Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
- (where)
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Pisa
- (when)
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2015
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Yu, Xiaodan
- Dosi, Giovanni
- Grazzi, Marco
- Lei, Jiasu
- Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM)
Time of origin
- 2015
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