Size Effect as an engine for the growth of the Algerian industrial firmsA study of a sample of firms working in the Algerian south-east during the period 2008-2012

Abstract

This article aims to examine the relationship between two main variables: size effect and firm’s growth, in 50 industrial firms operating in the Algerian south-east over five years, has been selected the experience’s effect, learning effect and economies of scale’s effect as indicators to measure size effect in Industrial firms using the Panel data models, the study found a statistically significant relationship between the growth rate and the unitary cost، gross margin of exploitation as variables to measure the experience’s effect, However, it didn’t find a significant relationship only to worker productivity as a variable to measure the learning effect on firm’s growth, but for economies of scale’s effect it didn’t find any statistically significant effect.