WHO QUITS NEXT? FIRM GROWTH IN GROWING ECONOMIES.

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...

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Publicado en:Economic Inquiry Vol. 57; no. 1; pp. 33 - 50
Autores principales: Caunedo, Julieta, Yurdagul, Emircan
Formato: Artículo
Publicado: Wiley-Blackwell Jan2019
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: WHO QUITS NEXT? FIRM GROWTH IN GROWING ECONOMIES.
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          Caunedo, Julieta
          Yurdagul, Emircan
        affil:
          Assistant Professor, Cornell University, Ithaca New York 14853
          Assistant Professor, Universidad Carlos III, Getafe 28903 Spain
      su:
        Organizational growth
        Employment
        Economic development
        Industrial productivity
        Rate of return
      sug:
        subj:
          Organizational growth
          Employment
          Economic development
          Industrial productivity
          Rate of return
      ab: 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.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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