HUI Working Papers, HUI Research
Zuzana Macuchova, Niklas Rudholm
Firm growth in the Swedish energy sector: Will large firms become even more dominant?
() and Aili Tang
Abstract: This paper examines the determinants of firm growth in the
Swedish energy sector using a sample of 200 energy firms active from 2000
to 2010. The article has two aims. First, we want to investigate whether
there is reason to believe that the Swedish energy market will become more
concentrated in the future, dominated by just a few firms. That would be
the result if, for example, large firms systematically and over time grew
faster than did smaller firms in the Swedish market. Second, we want to
investigate whether firm growth can mainly be explained by firm-specific
variables, supporting Penrose’s (1959) suggestion that internal resources
are the key determinants of firm growth rates. To this end, quantile
regression is used in addition to ordinary least squares regression, to
provide a more complete estimation of the growth distribution of firms
conditional on different attributes. The results indicate that large firms
do not grow faster than do other firms in the sector, and that energy
firms’ internal resources are indeed the key determinants of firm growth in
the Swedish energy industry.
Keywords: Market power; energy market regulation; energy market competition; quantile regression; competition policy; (follow links to similar papers)
JEL-Codes: L11; L25; L26; L94; (follow links to similar papers)
23 pages, May 15, 2014
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