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Firm Performance during Global Economic Slowdown: A View from India

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  • Pradhan, Jaya Prakash

Abstract

This study has analyzed the relative growth performance of Indian firms under the current economic slowdown and explored factors helping certain Indian companies to do relatively better even in this crisis period. It has been observed that the overall growth and stability of the global economy has become extremely important for the growth performance of Indian firms. In fact, sales and profitability growth of some 450 Indian manufacturing and IT firms were significantly reversed with the condition of global market turning adverse since late 2008. It is interesting that those Indian firms were relatively young in age and more focused on global market have been better off in terms of sales and profit growth than other firms. Also large firms and those having higher advertising intensities have enjoyed higher profit growth in this period. The concern for policy markers is that Indian companies have significantly reduced their technological activities due to falling sales and profit growth under the slowdown, besides their slashing of resource allocation for advertising and labour.

Suggested Citation

  • Pradhan, Jaya Prakash, 2009. "Firm Performance during Global Economic Slowdown: A View from India," MPRA Paper 17145, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17145
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    File URL: https://mpra.ub.uni-muenchen.de/17145/1/MPRA_paper_17145.pdf
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    References listed on IDEAS

    as
    1. Alex Coad, 2007. "Firm Growth: a Survey," Post-Print halshs-00155762, HAL.
    2. Pradhan, Jaya Prakash, 2005. "Different Shades of American Protectionism," MPRA Paper 16004, University Library of Munich, Germany.
    3. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
    4. Evans, David S, 1987. "The Relationship between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 567-581, June.
    5. Goddard, John & Wilson, John & Blandon, Peter, 2002. "Panel tests of Gibrat's Law for Japanese manufacturing," International Journal of Industrial Organization, Elsevier, vol. 20(3), pages 415-433, March.
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    Cited by:

    1. Tomislav Galac, 2015. "Microeconomic Aspects of the Impact of the Global Crisis on the Growth of Non-financial Corporations in the Republic of Croatia," Working Papers 44, The Croatian National Bank, Croatia.
    2. Lakhwinder Singh Kang & Payal, 2018. "Managerial Remuneration in India: Analysing Trends before and during the Economic Slowdown," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 43(3), pages 156-168, August.
    3. Primoz Dolenc & Andraz Grum & Suzana Laporsek, 2012. "The Effect Of Financial/Economic Crisis On Firm Performance In Slovenia - A Micro Level, Difference-In-Differences Approach," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 8(2), pages 207-222.

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    More about this item

    Keywords

    Economic Slowdown; Firm Growth; India.;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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