Who quits next? Firm growth in growing economies

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dc.contributor.author Caunedo, Julieta
dc.contributor.author Yurdagul, Emircan
dc.date.accessioned 2022-03-28T17:12:17Z
dc.date.available 2022-03-28T17:12:17Z
dc.date.issued 2019-01-01
dc.identifier.bibliographicCitation Caunedo, J., & Yurdagul, E. (2018). Who quits next? Firm growth in growing economies. Economic Inquiry, 57 (1), pp. 33-49
dc.identifier.issn 0095-2583
dc.identifier.uri http://hdl.handle.net/10016/34476
dc.description.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.
dc.description.sponsorship Yurdagul gratefully acknowledges the support from the Ministerio de Economía y Competitividad (Spain) (ECO2015-68615-P), María de Maeztu grant (MDM 2014-0431), and from Comunidad de Madrid, MadEco-CM (S2015/HUM-3444).
dc.language.iso eng
dc.publisher Wiley
dc.rights © 2018 Western Economic Association International
dc.subject.other Firm dynamics
dc.subject.other Productivity
dc.subject.other Selection
dc.subject.other Economic growth
dc.subject.other Cross-country data
dc.title Who quits next? Firm growth in growing economies
dc.type article
dc.subject.jel D21
dc.subject.jel D22
dc.subject.jel E23
dc.subject.jel O4
dc.subject.eciencia Economía
dc.identifier.doi https://doi.org/10.1111/ecin.12722
dc.rights.accessRights openAccess
dc.relation.projectID Gobierno de España. MDM-2014-0431
dc.relation.projectID Comunidad de Madrid. S2015/HUM-3444
dc.relation.projectID Gobierno de España. ECO2015-68615-P
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 33
dc.identifier.publicationissue 1
dc.identifier.publicationlastpage 49
dc.identifier.publicationtitle ECONOMIC INQUIRY
dc.identifier.publicationvolume 57
dc.identifier.uxxi AR/0000022385
dc.contributor.funder Ministerio de Economía y Competitividad (España)
dc.contributor.funder Comunidad de Madrid
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