Increasing returns to scale at the firm-level: a panel data study for Brazil
نویسنده
چکیده
This paper revisits Verdoorn’s Law and issues related to its estimation using micro-data. Using a large panel of firms from the Brazilian manufacturing industry from 1996 to 2002, the exercise finds compelling evidence of increasing returns to scale in such a low level of aggregation using different specifications. The results were strengthened by indicator variables for sub-sectors and participation in foreign trade, included to test learning-bydoing process associated with trade. Finally, the regressions also showed a significant amount of regional variability of the Verdoorn coefficient.
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