The factors of growth of small family businesses: A robust estimation of the behavioral consistency in the panel data models
The paper quantifies the role of factors associated with the growth (or decline) of micro and small businesses in European economies. The growth is related to employment and value added in enterprises as well as to ten institutional variables. We test the data for consistency of behavioural patterns in various countries and gradually remove outlying observations, quite a unique a pproach in the panel data analysis, that can lead to erroneous conclusions when using the classical estimators. In the first part of this paper we outline a highly robust method of estimation based on fixed effects and least trimmed squares (LTS). In its second part we apply this method on the panel data of 28 countries in 2002-2008 testing for the hypothesis that micro and small businesses in Europe use different strategies for their growth. We run a series of econometric tests where we regress employment and total net production in micro and small businesses on three economic factors: gross capital returns, labour cost gaps in small relative to large enterprises and the GDP per capita. In addition, we also test the role of 10 institutional factors in the growth of familty businesses.
Year of publication: |
2011
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Authors: | Benáček, Vladimír ; Michalíková, Eva |
Publisher: |
Prague : Charles University in Prague, Institute of Economic Studies (IES) |
Subject: | Familienunternehmen | KMU | Unternehmenserfolg | Robustes Verfahren | Statistischer Test | Europa | family business | robust estimator | LTS | fixed effects |
Saved in:
freely available
Series: | IES Working Paper ; 6/2011 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 646128345 [GVK] hdl:10419/83452 [Handle] |
Classification: | C01 - Econometrics ; C23 - Models with Panel Data ; C51 - Model Construction and Estimation ; C82 - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data ; F21 - International Investment; Long-Term Capital Movements ; F40 - Macroeconomic Aspects of International Trade and Finance. General |
Source: |
Persistent link: https://www.econbiz.de/10010322319