A closer look at serial growth rate correlation

Alex Coad*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

92 Citations (Scopus)


Serial correlation in annual growth rates carries a lot of information on growth processes - it allows us directly to observe firm performance as well as to test theories. Using a seven-year balanced panel of 10,000 French manufacturing firms, we observe that small firms typically are subject to negative correlation of annual growth rates, whereas larger firms display positive correlation. Furthermore, we find that those small firms that experience extreme positive or negative growth in any one year are unlikely to repeat this performance in the following year.

Original languageEnglish
Pages (from-to)69-82
Number of pages14
JournalReview of Industrial Organization
Issue number1
Publication statusPublished - 2007 Aug
Externally publishedYes


  • Fast-growth firms
  • Firm growth
  • French manufacturing
  • Quantile regression
  • Serial correlation

ASJC Scopus subject areas

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation


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