Caunedo, JulietaYurdagul, Emircan2022-03-282022-03-282019-01-01Caunedo, J., & Yurdagul, E. (2018). Who quits next? Firm growth in growing economies. Economic Inquiry, 57 (1), pp. 33-490095-2583https://hdl.handle.net/10016/34476We 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.eng© 2018 Western Economic Association InternationalFirm dynamicsProductivitySelectionEconomic growthCross-country dataresearch articleD21D22E23O4Economíahttps://doi.org/10.1111/ecin.12722open access33149ECONOMIC INQUIRY57AR/0000022385