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Firm Growth and Persistence of Chance: Evidence from Portuguese Microdata

Author

Listed:
  • Blandina Oliveira

    (ESTG, Instituto Politécnico de Leiria)

  • Adelino Fortunato

    (GEMF and Faculdade de Economia, Universidade de Coimbra)

Abstract

Considering a dynamic firm growth model with serial correlation this work studies the effects of R&D activities and investment, both physical and R&D, on the growth of firms. The main hypotheses maintain that firms with a strong commitment to R&D have higher rate of growth and investment has a positive effect on firm growth. We investigate such relations with reference to an unbalanced panel data set of Portuguese manufacturing firms over the period 1990 to 2001. We find that a systematic tendency for smaller firms to grow more quickly is the main reason why firm growth is not entirely stochastic.

Suggested Citation

  • Blandina Oliveira & Adelino Fortunato, 2005. "Firm Growth and Persistence of Chance: Evidence from Portuguese Microdata," GEMF Working Papers 2005-10, GEMF, Faculty of Economics, University of Coimbra.
    • Handle: RePEc:gmf:wpaper:2005-10
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Áron TÖRÖK & József TÓTH, 2013. "Open characters of innovation management in the Hungarian wine industry," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(9), pages 430-438.
    2. Toth, Jozsef, 2015. "Value creation and capturing: the case of the Hungarian agri-food SMEs," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204229, Agricultural Economics Society.
    3. József TÓTH, 2013. "Trust €“ Networking €“ Innovation," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(1), pages 510-519, November.
    4. Jozsef Toth & Liesbeth Dries & Stefano Pascucci, 2012. "Open Innovation Characters of the Hungarian wine Industry," MIC 2012: Managing Transformation with Creativity; Proceedings of the 13th International Conference, Budapest, 22–24 November 2012 [Selected Papers],, University of Primorska, Faculty of Management Koper.
    5. Rolando Vaz, 2023. "Firm growth in the Portuguese footwear industry: the location dilemma," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 407-427, April.

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    More about this item

    Keywords

    Firm growth; R&D; GMM system estimator;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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