Economics, Econometrics and Finance
4 years ago

Efficiency not key to growth: Corporate profits drive industrial change

HAL (Le Centre pour la Communication Scientifique Directe)
Corporate performances and market selection. Some comparative evidence
Giulio Bottazzi, Giovanni Dosi, Nadia Jacoby, Angelo Secchi, Federico Tamagni

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The article explores how differences in efficiency affect the growth and profitability of companies in Italy and France. The researchers found that more efficient companies tend to have higher profits, but the link between efficiency and growth is not as strong. This suggests that factors other than efficiency play a significant role in a company's growth. The results were consistent across different industries and countries.