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Economic Growth as the Result of Firms’ Aggregate Performance: Evidence from the OECD Countries

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  • João Ferreira Brito

    (FEP - University of Porto - Portugal)

  • Pedro Cosme Costa Vieira

    (FEP - University of Porto - Portugal)

Abstract

In recent years cross-country differences in privatelly owned firms’ performance have been linked to divergence in economic performance at national level. In this vein, this study aims to investigate if a larger private sector enhances countries output level and economic growth, in accordance with the Washington Consensus (1989), where one of the constituting economic policy prescriptions is the privatization of state enterprises. With the underlying theoretical framework based on economic growth theories to control the model and using an unbalanced panel data we estimated a empirical model using Fixed Effects Weighted Least Squares method (WLS), where countries population is the weighting factor. We conclude that firms are important factor of economic development of the countries.

Suggested Citation

  • João Ferreira Brito & Pedro Cosme Costa Vieira, 2013. "Economic Growth as the Result of Firms’ Aggregate Performance: Evidence from the OECD Countries," Economics and Management Research Projects: An International Journal, Open Access International Journals, vol. 3(1), pages 24-31, December.
    • Handle: RePEc:por:emrpij:v:3:y:2013:i:1:p:24-31
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic Growth; Firms’ Aggregate Performance; OECD Countries;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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