IDEAS home Printed from https://ideas.repec.org/a/eee/indorg/v9y1991i2p251-259.html
   My bibliography  Save this article

Testing the relationship between the growth of firms and the growth of the economy

Author

Listed:
  • Rondi, Laura
  • Sembenelli, Alessandro

Abstract

On the account of the growing attention towards the role of large enterprises overall economy as well as the investigation of micro-to-macro interfaces, this paper proposes an econometric test of the existing long run relationship between the growth of the economy and the growth of a group of Italian industrial firms. To this purpose we attempt an inquiry into the direction of the causality between the expansion paths of the firms and of the economy. After testing the hypothesis of co-integration between the growth of the firms and the growth of the economy, an Error Correction Model is estimated. Having found that the hypothesis of weak exogeneity of the firms cannot be rejected, a confirmation of the assumptions that assign an active role to large companies in driving the growth of the economy is given.

Suggested Citation

  • Rondi, Laura & Sembenelli, Alessandro, 1991. "Testing the relationship between the growth of firms and the growth of the economy," International Journal of Industrial Organization, Elsevier, vol. 9(2), pages 251-259, June.
    • Handle: RePEc:eee:indorg:v:9:y:1991:i:2:p:251-259
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167-7187(05)80006-2
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:indorg:v:9:y:1991:i:2:p:251-259. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505551 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.