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Factors Affecting the Growth of Manufacturing Firms - Analysis of Growth Stages: A Case of German Firms

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  • Antje Schimke

Abstract

This paper focuses on factors that affect the growth of manufacturing firms in Germany. It addresses which factors might be needful and which factors might be helpful for the different growth stages of these firms. Most firms face turning points in their life course, and thus do not grow continuously. By using panel data on German manufacturing firms over the period 1992-2007, we analyse a sample of 278 enterprises. The criterion used for selecting the sample was that they belong to the category of manufacturing sector (NACE-2-digit industries), which are surveyed by the Centre for European Economic Research (ZEW). It could be discovered that a set of firm specific factors such as export orientation, R&D activities, firm size and type of industry are more likely to affect the growth process of a firm. The results from regression analysis indicate that some indicators are related to the growth process of firms. So, it can be stated that some indicators might be needful or helpful for the growth of manufacturing firms.

Suggested Citation

  • Antje Schimke, 2011. "Factors Affecting the Growth of Manufacturing Firms - Analysis of Growth Stages: A Case of German Firms," ERSA conference papers ersa10p1386, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa10p1386
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