Pradhan, Jaya Prakash (2009): Firm Performance during Global Economic Slowdown: A View from India.
Download (320kB) | Preview
This study has analyzed the relative growth performance of Indian firms under the current economic slowdown and explored factors helping certain Indian companies to do relatively better even in this crisis period. It has been observed that the overall growth and stability of the global economy has become extremely important for the growth performance of Indian firms. In fact, sales and profitability growth of some 450 Indian manufacturing and IT firms were significantly reversed with the condition of global market turning adverse since late 2008. It is interesting that those Indian firms were relatively young in age and more focused on global market have been better off in terms of sales and profit growth than other firms. Also large firms and those having higher advertising intensities have enjoyed higher profit growth in this period. The concern for policy markers is that Indian companies have significantly reduced their technological activities due to falling sales and profit growth under the slowdown, besides their slashing of resource allocation for advertising and labour.
|Item Type:||MPRA Paper|
|Original Title:||Firm Performance during Global Economic Slowdown: A View from India|
|English Title:||Firm Performance during Global Economic Slowdown: A View from India|
|Keywords:||Economic Slowdown; Firm Growth; India.|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General
|Depositing User:||Jaya Prakash Pradhan|
|Date Deposited:||07. Sep 2009 09:39|
|Last Modified:||13. Feb 2013 04:13|
Coad, A. (2007), ‘Firm Growth: A Survey’, CES Working Papers, No. 2007.24, Centre d'Economie de la Sorbonne, Université Panthéon-Sorbonne, Paris.
Das, K. (2009), ‘Double Whammy for a Beaten Sector’, Special Issue on Insight: Small & Medium Business, The Financial Express, New Delhi, January 23.
Dunne, P. and A. Hughes (1994), ‘Age, Size, Growth and Survival: UK Companies in the 1980s’, Journal of Industrial Economics, 42 (2), pp. 115-140.
Evans, D.S. (1987), ‘The Relationship between Firm Growth, Size and Age: Estimates for 100 Manufacturing Industries’, Journal of Industrial Economics, 35, pp. 567–581.
Gibrat, R. (1931), Les Inégalités Économiques, Paris, Sirey.
Goddard, J., J. Wilson and P. Blandon (2002), ‘Panel Tests of Gibrat’s Law for Japanese Manufacturing’, International Journal of Industrial Organization, 20, pp. 415-433.
Hall, B.H. (1987), ‘The Relationship Bbetween Firm Size and Firm Growth in the U.S. Manufacturing Sector’, Journal of Industrial Economics, 35, pp. 583–600.
Hindu Business Line (2008) ‘Auto parts makers see sharp drop in orders from US, Europe’, October 12.
Jovanovic, B. (1982) ‘Selection and Evolution of Industry’, Econometrica, 50, pp. 649−670.
Penrose, E. (1995), The Theory of the Growth of the Firm, Oxford University Press, New York.
Pradhan, J.P. (2009) ‘How Did Decoupled Become Coupled?: India’s Miracle Growth Drops’, MPRA Paper, No. 16017, University Library of Munich, Germany.
Sutton, J. (1997), ‘Gibrat’s Legacy’, Journal of Economic Literature, 35, pp. 40–59.