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What Drives the Dynamics of Business Growth?

Author

Listed:
  • Albert Bravo-Biosca

    (Nesta)

  • Chiara Criscuolo

    (OECD)

  • Carlo Menon

    (OECD)

Abstract

Differences in the dynamisms of economies are persistent. Notwithstanding the growing body of evidence documenting these large cross-country differences, our understanding of what drives them is still rather limited. This paper seeks to help close this gap. Using unique data for ten countries the analysis sheds light on the factors that shape the distribution of firm growth and on what role policies play in driving cross-country differences. The paper provides new evidence on the link of labour market regulation, bankruptcy legislation, financial market development and R&D support policies with growth dynamics. The study goes beyond looking at differences in average growth rates as it analyses changes in the whole distribution of firms.

Suggested Citation

  • Albert Bravo-Biosca & Chiara Criscuolo & Carlo Menon, 2013. "What Drives the Dynamics of Business Growth?," OECD Science, Technology and Industry Policy Papers 1, OECD Publishing.
    • Handle: RePEc:oec:stiaac:1-en
    DOI: 10.1787/5k486qtttq46-en
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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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