Publication:
Who quits next? Firm growth in growing economies

Thumbnail Image
Identifiers
URI: https://hdl.handle.net/10016/34476
ISSN: 0095-2583
DOI: https://doi.org/10.1111/ecin.12722
UXXI: AR/0000022385
Files
who_EI_2018_ps.pdf (1.01 MB)
material_suplementario_ who_EI_2018_ps.pdf (443.54 KB)
Publication date
2019-01-01
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Wiley
Impact
Google Scholar
Export
Research Projects
Organizational Units
Journal Issue
Abstract
We document novel facts about the relationship between aggregate growth and firm dynamics using a large set of countries. We argue that firm employment patterns are not necessarily informative about cross-country differences in aggregate growth because they are induced by changes in the productivity of a firm relative to others. In contrast, aggregate growth is linked to average firm-level productivity growth and firm age. We formalize this intuition through a tractable model of endogenous aggregate growth and firm dynamics where firms realize positive returns to investment with some probability. We find that cross-country disparities in this probability can account for two-thirds of the variation in aggregate growth.
Description
Keywords
Firm dynamics, Productivity, Selection, Economic growth, Cross-country data
Bibliographic citation
Caunedo, J., & Yurdagul, E. (2018). Who quits next? Firm growth in growing economies. Economic Inquiry, 57 (1), pp. 33-49
Collections
DE - Artículos de Revistas