What determines the growth of micro firms in the euro area?
DOI:
https://doi.org/10.17811/ebl.5.4.2016.145-151Abstract
This paper explores the diverging impact of country- and firm-specific factors on the growth of micro firms in the euro area (2005-2011) along different growth quantiles. While bank credit and firm sales seem to be important for all size groups and quantiles, micro firms are found to be particularly vulnerable to country-specific conditions, especially financial stability, country risk, banking concentration and post-crisis location in the European periphery, the most exposed ones being those with the slowest growth.
References
Aghion, P., Fally, T. and Scarpetta, S. (2007) Credit constraints as a barrier to the entry and post-entry growth of firms, Economic Policy, 22(52), 732-779.
Beck, T. and Demirgüç-Kunt, A. (2006) Small and medium-size enterprises: access to finance as a growth constraint, Journal of Banking and Finance, 30(11), 2931-2943.
Bena, J. and Jurajda, S. (2011) Financial development and corporate growth in the EU single market, Economica, 78(311), 401-428.
Campello, M., Graham, J. and Harvey, C. (2010) The real effects of financial constraints: evidence from a financial crisis, Journal of Financial Economics, 97(3), 470-487.
Coad, A. and Tamvada J.P., (2012). Firm growth and barriers to growth among small firms in India. Small Business Economics, 39(2), 383-400.
ECB (2013). ECB monthly bulletin July 2013, European Central Bank: Frankfurt.
European Commission (2003) Commission recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises, Official Journal of the European Union, 46, 36–41.
Fielding, D. and Rewilak, J. (2015) Credit booms, financial fragility and banking crises, Economics Letters, 136, 233-236.
Koenker, R. (2004) Quantile regression for longitudinal data, Journal Multivariate Analysis 91(1), 74-89.
Koenker, R., & Bassett, G. (1978) Regression quantiles. Econometrica, 46(1), 33-50.
Laeven, L. and Valencia, F. (2013) The real effects of financial sector interventions during crises, Journal of Money, Credit and Banking, 45(1), 147-177.
Lee, N. (2014) What holds back high-growth firms? Evidence from UK SMEs. Small Business Economics, 43(1), 183-195.
Peric, M. and Vitezic, V. (2016) Impact of global economic crisis on firm growth, Small Business Economics, 46(1), 1-12.
Rajan, R. and Zingales, L. (1998) Financial dependence and growth, American Economic Review, 88(3), 559-586.
Ratti, R.A., Lee, S. and Seol, Y. (2008) Bank concentration and financial constraints on firm-level investment in Europe, Journal of Banking and Finance, 32(12), 2684-2694.
Downloads
Published
How to Cite
Issue
Section
License
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.
