Economics aspects of firm growth

Aims of the course

- Identify and compare different indicators of firm growth
- Classify various reasons and obstacles to growth
- Identify and compare different theories of company growth
- Identify different typologies of firm growth and critically evaluate typologies based on empirically studied growth patterns
- Identify key drivers of growth and exit
- Explain different methods of measuring efficiency

Course syllabus

1. Firm growth
1.1 Absolute and relative growth rates and the definition of fast-growing companies
1.2 Reasons for growth
1.3 Barriers to growth
1.4 Active and passive growth

2. Growth and optimal firm size
2.1 Microeconomic theory of optimal size
2.2 Transaction cost theory
2.3 Theory of industrial organization
2.4 Dynamic models of firm growth

3. Typologies of growth
3.1 Types of growth according to microeconomic theory
3.2 Types of growth according to growth strategies
3.3 Types of growth according to empirically studied growth patterns

4. Firm growth determinants
4.1 Internal factors with emphasis on efficiency and methods of measuring efficiency
4.2 External factors

5. Firm exit determinants
5.1 Internal factors
5.2 External factors
5.3 Harvesting strategies

Course director(s)