Quotation Geroski, Paul A., Gugler, Klaus. 2004. Corporate Growth Convergence in Europe. Oxford Economic Papers, New Series 56 597-620.




It is widely believed that the implementation of the Single Market Programme in 1992 has had an impact on national markets in Europe, and some people have argued that it has induced a convergence in industrial structures across countries. Using a newly available database, however, covering nearly every firm above 100 employees in 14 European countries over the time period 1994 to 1998, we do not find strong evidence for 'convergence' in manufacturing in Europe. 'Full' convergence in corporate sizes within industries is unambiguously rejected by the data, although there may be some industries where some form of conditional convergence is observed. A Gibrat process best describes the growth of very large and mature firms; but smaller and younger firms depart from this prediction. While we can identify significant correlates of growth such as firm size, age or the internal organization of the firm, most of the variation in corporate growth remains unpredictable.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Oxford Economic Papers New Series
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-C
Language English
Title Corporate Growth Convergence in Europe
Volume 56
Year 2004
Page from 597
Page to 620


Gugler, Klaus (Details)
Geroski, Paul A. (London Business School, United Kingdom)
Research Institute for Regulatory Economics FI (Details)
Department of Economics (Gugler) (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5370 Industrial economics (Details)
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